OT:RR:BSTC:CCR H243807 DAC
Mr. William J. Maloney
Rode & Qualey
55 West 39th Street
New York, NY 10018
RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a(a)(1);
HTSUS subheading 9803.00.50; World Courier Management, Inc.; GTC boxes, VIP boxes, VIP-tainers.
Dear Mr. Maloney:
This is in response to your May 14, 2014 ruling request on behalf of your client World Courier Management, Inc. (“World Courier”). In your letter, you request a ruling concerning whether GTC boxes and VIP boxes (GTC4L, GTC12L, GTC28L, GTC56L, GTC96L, VIP-box L, VIP-box XL, VIP-tainer) qualify as instruments of international traffic (IIT) pursuant to 19 C.F.R. § 10.41a and are therefore, classifiable under subheading 9803.00.50 of the Harmonized Tariff Schedule of the United States (HTSUS). Our decision follows.
FACTS
The following information and statements were submitted in your ruling request and your subsequent e-mails to this office dated June 13 and 18, 2014. The GTC and VIP boxes are thermally insulated shipping boxes made of durable materials, capable of repeated use international transportation primarily for the transport of biological and pharmaceutical products. World Courier intends to use the GTC and VIP boxes to ship pharmaceutical products between numerous countries and various locations in the United States (“U.S.”). You state that the GTC and VIP boxes are manufactured within the United States in Minnesota. The GTC and VIP boxes will repeatedly and regularly cycle through routes of international transportation and return to the U.S. for re-use in future shipments. You also state that a limited number of the GTC and VIP boxes will be used within the United States for point to point domestic transportation.
GTC boxes
The GTC boxes consist of an outer corrugated fiberboard carton, a secondary polypropylene carton, a vacuum panel base, and a vacuum panel lid, which are used together to ship temperature controlled pharmaceutical products. Each of the GTC boxes is designated based upon the capacity and the dimensions are as follows: GTC4L 340 x 290 x 300 mm; GTC12L 400 x 360 x 380 mm; GTC 28L 480 x 440 x 460 mm; GTC56L 540 x 520 x 530 mm; GTC96L 656 x 656 x 600 mm. You also state the GTC96L has an outer case of hard plastic with a hinged lid and latched closure. You state that each of the GTC boxes has a minimum lifespan of 30 months and is capable of being used a minimum of 30 times. The GTC boxes are expected to be used at a minimum of once per month for 30 months for shipments over routes of international transportation, primarily between the United States and numerous countries listed above. World Courier claims that there are currently approximately 6,500 GTC boxes in use in international transportation. World Courier indicates that these GTC boxes will not enter domestic commerce.
Schematic drawing of GTC96L Schematic drawing of:
GTC4L, GTC12L, GTC28L, GTC56L
Image of GTC 96L Images of GTC4L, GTC12L, GTC28L, GTC56L
VIP boxes and VIP-tainers
The VIP boxes are designated as VIP-box L, VIP-box XL, and VIP-tainer. You state the VIP boxes feature rigid outer shells made of melamine coated plywood and that the VIP-box L and VIP-box XL have hinged lids and latch closures. The VIP-box L and VIP-box XL consist of a thermal styrofoam box, a melamine coated plywood box with lid, vacuum panels, and an inner fiberboard box. The dimensions of the VIP-box L are 600 x 400 x 540 mm, and the dimensions of the VIP-box XL are 600 x 600 x 580 mm. The VIP-tainer consists of aluminum coated polyurethane plates, vacuum panels, a stainless bin and lid, melamine coated plywood case with lid, gaskets, and foam plates, and you state the VIP-tainer has an integral pallet. You state that each of the VIP boxes and VIP-tainer have a minimum lifespan of 30 months and is capable of being used a minimum of 30 times. You further state that the VIP boxes and VIP-tainers are expected to be used at a minimum of once per month for 30 months for shipments over routes of international transportation, primarily between the United States and numerous countries listed above. World Courier claims that there are currently approximately 2,685 VIP boxes and VIP-tainers in use in international transportation. World Courier indicates that the VIP boxes and VIP-tainer will not enter domestic commerce.
Schematic drawing of:
VIP-box L VIP-box XL
Schematic drawing of VIP-tainer
Image of VIP-box L Image of VIP-box XL
Image of VIP-tainer
ISSUES
Whether the subject GTC4L, GTC12L, GTC28L, GTC56L boxes are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
Whether the subject GTC96L boxes are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
Whether the subject VIP-boxes are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
Whether the subject VIP-tainers are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
LAW AND ANALYSIS
Pursuant to 19 U.S.C. § 1322(a), IITs shall be excepted from the application of the Customs laws to the extent that such terms and conditions are prescribed in regulations or instructions. The relevant CBP regulations implementing that statute are found at 19 C.F.R. § 10.41a(a)(1) which provides in pertinent part:
Lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics, arriving (whether loaded or empty) in use or to be used in the shipment of merchandise in international traffic are hereby designated as “instruments of international traffic” . . .
The Commissioner of Customs [now CBP] is authorized to designate as instruments of international traffic, . . ., such additional articles or classes of articles as he shall find should be so designated.
19 C.F.R. § 10.41a(a)(1)(emphasis added).
Such instruments may be released without entry or the payment of duty, subject to the provisions of this section.
To qualify for entry-free and duty-free treatment as IITs under the aforementioned statutory and regulatory authority, the article must be a substantial container or holder. As stated above, CBP is authorized to designate as an IIT such additional articles not specifically noted in 19 C.F.R. § 10.41a(a)(1). Historically, CBP has held in its published decisions that in order to qualify as an IIT within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1), an article must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. See HQ H016491 (Oct. 1, 2007); HQ 114150 (Dec. 12, 1997); HQ 107545 (May 7, 1985); Treas. Dec. 71-159, Cust. B. & Dec. 296 (June 18, 1971); T.D. 66-184, (Aug. 29, 1966); 99 Treas. Dec. 533, No. 56247 (Aug. 26, 1964).
Subheading 9803.00.50, HTSUS provides for the duty-free treatment of:
Substantial containers and holders, if products of the United States (including shooks and staves of United States production when returned as boxes or barrels containing merchandise), or if of foreign production and previously imported and duty (if any) thereon paid, or if of a class specified by the Secretary of the Treasury as instruments of international traffic, repair components for containers of foreign production which are instruments of international traffic, and accessories and equipment for such containers, whether the accessories and equipment are imported with a container to be reexported separately or with another container, or imported separately to be reexported with a container. (footnote and emphasis added).
Subchapter 98 of the HTSUS only applies to:
(a) Substantial containers or holders which are subject to tariff treatment as imported articles and are:
(i) Imported empty and not within the purview of a provision which specifically exempts them from duty; or
(ii) Imported containing or holding articles, and which are not of a kind normally sold therewith or are entered separately therefrom; and
(b) Certain repair components, accessories and equipment.
See U.S. Note 1, et seq., Chapter 98, HTSUS.
Issue 1- GTC4L, GTC12L, GTC28L, GTC 56L-boxes as IITs under 19 C.F.R. § 10.41a(a)(1)
The GTC4L, GTC12L, GTC28L, GTC56L boxes are substantial inasmuch as they are made of outer corrugated fiberboard carton and a secondary polypropylene carton, are in use in international traffic with a lifespan of at least 30 months. The subject GTC boxes are suitable for and capable of reuse, insofar as World Courier will ship GTC boxes over routes of international transportation, primarily between numerous countries listed above and the U.S. The concept of reuse contemplated above is for commercial shipping or transportation purposes, and not incidental or fugitive uses. See Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at 99; Holly Stores, Inc. v. United States, 697 F.2d 1387 (Fed. Cir. 1982). CBP has consistently held that single use is not sufficient; reuse means more than twice. See HQ 105567 and HQ 108658. The GTC boxes are used in significant numbers in international traffic inasmuch as 6,500 GTC boxes are already in use in international transportation.
CBP has addressed the issue of insulated shipping boxes used in the international shipment of temperature controlled merchandise. In HQ H236467 (July 2, 2013), CBP held that AcuTemp® insulated shipping boxes used in the international shipment of temperature controlled merchandise qualified for IIT status. In this case, the GTC-boxes involve approximately 6,500 boxes that are used in international shipments over a period of at least thirty months.
Based on the foregoing, the GTC4L, GTC12L, GTC28L, GTC56L boxes are IITs; therefore, they will qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1) and HTSUS subheading 9803.00.50.
Issue 2- GTC96L boxes as IITs under 19 C.F.R. § 10.41a(a)(1)
The GTC96L boxes are substantial inasmuch as they are made of outer case of hard plastic with a hinged lid and latched closure, a corrugated fiberboard carton and a secondary polypropylene carton, and they are in use in international traffic with a lifespan of at least 30 months. The subject GTC boxes are suitable for and capable of reuse, insofar as World Courier will ship GTC boxes over routes of international transportation, primarily between numerous countries listed above and the U.S. The concept of reuse contemplated above is for commercial shipping or transportation purposes, and not incidental or fugitive uses. See Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at 99; Holly Stores, Inc. v. United States, 697 F.2d 1387 (Fed. Cir. 1982). CBP has consistently held that single use is not sufficient; reuse means more than twice. See HQ 105567 and HQ 108658. The GTC boxes are used in significant numbers in international traffic inasmuch as 6,500 GTC boxes are already in use in international transportation.
CBP has addressed the issue of insulated shipping boxes used in the international shipment of temperature controlled merchandise. In HQ H236467 (July 2, 2013), CBP held that AcuTemp® insulated shipping boxes used in the international shipment of temperature controlled merchandise qualified for IIT status. In this case, the GTC-boxes involve approximately 6,500 boxes that are used in international shipments over a period of at least thirty months.
Based on the foregoing, the GTC96L boxes are IITs; therefore, they will qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1) and HTSUS subheading 9803.00.50.
Issue 3- VIP-boxes as IITs under 19 C.F.R. § 10.41a(a)(1)
The VIP-boxes (VIP-box L and VIP-box XL) are substantial inasmuch as they are made of a thermal styrofoam box, a melamine coated plywood box with lid, vacuum panels, and an inner fiberboard box. The subject VIP-boxes are suitable for and capable of reuse, insofar as each VIP-box may be used at least 30 times in international transportation, primarily between numerous countries listed above and the U.S., during a lifespan of at least thirty months. The concept of reuse contemplated above is for commercial shipping or transportation purposes, and not incidental or fugitive uses. See Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at 99; Holly Stores, Inc. v. United States, 697 F.2d 1387 (Fed. Cir. 1982). CBP has consistently held that single use is not sufficient; reuse means more than twice. See HQ 105567 and HQ 108658. World Courier indicates that there are approximately 2,685 VIP-boxes and VIP-tainers currently in use in international transportation. Thus, the VIP-boxes and VIP-tainers are used in significant numbers in international traffic.
CBP has addressed the issue of insulated shipping boxes used in the international shipment of temperature controlled merchandise. In HQ H236467 (July 2, 2013), CBP held that AcuTemp® insulated shipping boxes used in the international shipment of temperature controlled merchandise qualified for IIT status. In this case, the VIP-boxes and VIP-tainers involve approximately 2,685 boxes that are used in international shipments over a period of at least thirty months.
Based on the foregoing, the VIP-boxes are IITs; therefore, they will qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1) and HTSUS subheading 9803.00.50.
Issue 4- VIP-tainers as IITs under 19 C.F.R. § 10.41a(a)(1)
The VIP-tainers are substantial inasmuch as they are made of aluminum coated polyurethane plates, vacuum panels, a stainless bin and lid, melamine coated plywood case with lid, gaskets, and foam plates. The subject VIP-tainers are suitable for and capable of reuse, insofar as each VIP-tainer may be used at least 30 times in international transportation, primarily between numerous countries listed above and the U.S., during a lifespan of at least thirty months. The concept of reuse contemplated above is for commercial shipping or transportation purposes, and not incidental or fugitive uses. See Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at 99; Holly Stores, Inc. v. United States, 697 F.2d 1387 (Fed. Cir. 1982). CBP has consistently held that single use is not sufficient; reuse means more than twice. See HQ 105567 and HQ 108658. World Courier indicates that there are approximately 2,685 VIP-boxes and VIP-tainers currently in use in international transportation. Thus, the VIP-boxes and VIP-tainers are used in significant numbers in international traffic.
CBP has addressed the issue of insulated shipping boxes used in the international shipment of temperature controlled merchandise. In HQ H236467 (July 2, 2013), CBP held that AcuTemp® insulated shipping boxes used in the international shipment of temperature controlled merchandise qualified for IIT status. In HQ H218509 (July 30, 2012), CBP held that the Intelligent Thermal Solutions Reusable Shipping Containers used in the international shipment of temperature controlled merchandise qualified for IIT status. In this case, the VIP-boxes and VIP-tainers involve approximately 2,685 boxes that are used in international shipments over a period of at least thirty months.
Based on the foregoing, the VIP-tainers are IITs; therefore, they will qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1) and HTSUS subheading 9803.00.50.
HOLDING
The subject GTC4L, GTC12L, GTC28L, GTC56L boxes are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
The subject GTC96L boxes are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
The subject VIP-boxes are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
The subject VIP-tainers are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
Sincerely,
Lisa L. Burley
Chief/Supervisory Attorney-Advisor
Cargo Security, Carriers and Restricted Merchandise Branch
Office of International Trade, Regulations and Rulings
U.S. Customs and Border Protection