BOR-4-07-OT:RR:BSTC:CCR H266424 WRB
Mr. Matthew Clark
Director, Import Services
SEKO Customs Brokerage, Inc.
1100 Arlington Heights Road
Itasca, IL 60143
RE: Instruments of International Traffic; Gamesa Wind US, LLC; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a.
Dear Mr. Clark:
This is in response to your June 12, 2015, ruling request on behalf of your client, Gamesa Wind US, LLC, In your request you inquire whether certain wind turbine blade fixtures qualify as “instruments of international traffic” within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a. Our ruling is set forth below.
FACTS
The following facts are from your ruling request and supplements thereto. Gamesa Wind US, LLC, (Gamesa) imports wind turbines. Wind turbines are imported disassembled due to the weights and dimensions of the individual components, and are composed of the tower, the nacelle, the hub and the blades.
Wind turbine blades are transported on specially designed sets of fixtures, one for the tip end of the blade and one for the root end of the blade. The blades are imported from manufacturers in Europe, Asia and Mexico. A blade fixture set consists of two (2) frames, a tip frame and a root frame, with adjustable arms for securing the blade to the fixture. There are approximately 1000 blade fixture sets in use in the Gamesa organization. The blade fixtures are constructed of heavy-duty, welded steel, with welded or bolted joints and connections. The anticipated life span of a blade fixture set is estimated to be in excess of ten years, unless significant damage renders it unusable. Most blade fixture sets are serialized, and Gamesa is in the process of serializing the remainder. The serial number data will be noted on future shipping documents.
Once imported, the fixtures are used to transport the blades to the wind farm construction sites at various locations in the United States, including, but not limited to, Ohio, North Carolina, New York, and West Virginia. The port of arrival varies depending on the location of the wind farm. The blades are held in the fixtures until they are attached to the hub for installation on the nacelle. Upon unloading, the blade fixture sets are returned to the overseas manufacturer in China, India or Spain, where they will be used to transport more blades. The fixtures are depicted in the photographs below provided by Gamesa:
ISSUE
Whether the blade fixtures described above qualify as “instruments of international traffic” within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a?
LAW AND ANALYSIS
Gamesa asserts that the subject blade fixtures may be classified under subheading 9803.00.50, Harmonized Tariff Schedule of the United States (HTSUS) because they qualify as IITs.
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 Customs and Border Protection (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. Such instruments may be released without entry or the payment of duty, subject to the provisions of this section.
19 C.F.R. § 10.41a(a)(1)(emphasis added).
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); 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.
CBP has consistently ruled that certain steel racks meet the qualifications of being instruments of international traffic. In C.S.D. 80-220 (Feb. 1, 1980), all-steel pipe carrier units, consisting of a rectangular base and steel bars to transport bundled lengths of pipe were determined to be IITs. Similarly, in T.D. 75-59 (Mar. 4, 1975), metal shipping racks used for the transportation of insulating glass units were designated as IITs. Also, in HQ H022952 (Apr. 3, 2008), collapsible steel racks used to hold work trucks made of heavy gauge steel, with collapsible posts and an open top, and pockets on the bottom to facilitate movement by a fork lift truck, were determined to be IITs as well. See also HQ H007166 (May 10, 2007) (steel racks used to import automobile transmissions); HQ H002927 (Nov. 22, 2006) (steel racks used to import doors); HQ 116047 (Dec. 1, 2003) citing HQ 113687 (Feb. 27, 1997) (steel racks used to import automobile parts).
Upon reviewing the present matter, based on the information provided by Gamesa, that the requisite criteria for designation of the subject blade fixtures as instruments of international traffic have been met. As concerns the blade fixtures described in the FACTS section above, they are substantial inasmuch as they are made of heavy-duty, welded steel, with welded or bolted joints and connections. Further, they are suitable for and capable of repeated use as they have a useful life in excess of 10 years and will be used up to 157 times annually. They are used in significant numbers in international traffic insofar as the current inventory of such blade fixtures numbers in excess of 1000. Based on the foregoing, the blade fixtures described in the FACTS section above are IITs; therefore, they qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1) and 9803.00.50, HTSUS.
HOLDING
The subject blade fixtures, described in the FACTS section above, 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
Cargo Security, Carriers and Restricted Merchandise Branch
Office of International Trade, Regulations and Rulings
U.S. Customs and Border Protection