BOR-4-07-RR:BSTC:CCI 116534 CK
Marian E. Ladner
Epstein Becker Green Wickliff & Hall, P.C.
Wells Fargo Plaza
1000 Louisiana, Suite 5400
Houston, Texas 77002-5013
RE: Stainless Steel Totes (IBC’s); Carbon Steel IMO 1 Skid Tanks; Carbon
Steel Cylinders; Instrument of International Traffic; 19 USC 1322(a);
19 CFR 10.41a.
Dear Ms. Ladner:
This is in response to your ruling request dated August 22, 2005, on behalf of your client, Baker Petrolite Corporation, sent to the National Commodity Specialist Division in New York. Your request was forwarded to our branch for reply.
FACTS:
Baker Petrolite Corporation (“Baker”) uses stainless steel totes (IBC’s), carbon steel IMO 1 skid tanks and carbon steel cylinders to ship chemicals to worldwide destinations. These chemicals are used predominately in chemical plants, oilfields, refineries, pipeline applications and irrigation systems. Once the chemical has been used the empty containers, dirty with residue, are returned to the United States where they are cleaned, inspected and re-used for other export shipments or domestically.
The stainless steel totes (IBC’s) measure approximately 42 inches long x 48 inches wide, and come in several different heights ranging from 20 inches to 75 inches. Currently Baker Petrolite owns in excess 10,000 totes produced in the U.S. and all are in active use.
The carbon steel IMO 1 skid tanks measure approximately 8’7” in length x 3’7” in diameter x 48 inches height. Currently Baker Petrolite owns in excess of 500 of the IMO 1 skid tanks produced in the U.S. and all are in active use.
The carbon steel cylinders measure 41 inches in length x 22 inches wide x 52 ½ inches high. Currently Baker Petrolite owns in excess of 3,400 cylinders produced in the U.S. and all are in active use.
Copies of drawings and specifications for the stainless steel totes (IBCs), carbon steel IMO 1 skid tanks and carbon steel cylinders were enclosed with the ruling request.
ISSUE:
Whether the stainless steel totes (IBCs), carbon steel IMO 1 skid tanks and carbon steel cylinders described above may be designated as instruments of international traffic within the meaning of 19 U.S.C. §§ 1322(a) and 10.41a, CBP regulations (19 CFR 10.41a)?
LAW AND ANALYSIS:
Title 19, United States Code, section 1322(a) (19 U.S.C. 1322(a)), provides in pertinent part that “[v]ehicles and other instruments of international traffic…shall be excepted from the application of the customs laws to such extent and subject to such terms and conditions as may be prescribed in regulations….” The CBP regulations issued under the authority of section 322(a) are contained in section 10.41a (19 CFR 10.41a). Section 10.41a(a)(1) specifically designates lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics as instruments of international traffic.
Section 10.41a(a)(1) also authorizes the Commissioner of CBP to designate other items as instruments of international traffic. Once designated as instruments of international traffic, these items may be released without entry or the payment of duty, subject to the provisions of section 10.41a.
To qualify as an “instrument of international traffic” (IIT) within the meaning of 19 U.S.C. section 1322(a) and the regulation promulgated pursuant thereto (19 CFR 10.41 et seq.), an article must be used as a container or holder. The article must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. (See, subheading 9803.00.50, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), and former Headnote 6(b)(ii), Tariff Schedule of the United States (TSUS), as well as Headquarters Decisions 104766; 108084; 108658; 109665; and 109702).
The concept of reuse contemplated above is for commercial shipping or transportation purposes, and not incidental or fugitive uses. Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at 99. See Holly Stores, Inc. v. United States, 697 F.2d 1387 (Federal Circuit, 1982).
We note that CBP has previously ruled on the IIT status of articles of similar size, construction, and usage. In HQ 116240, dated July 23, 2004, CBP held that steel film frames and plastic containers used to ship integrated circuit dies are IITs. In HQ 116047, dated December 1, 2003, CBP held that collapsible steel racks that hold automobile transmissions within ocean containers are IITs. In HQ 115503, dated May 30, 2000, we held that hard plastic boxes used to ship integrated circuit wafers qualified as IITs. In HQ 114506, dated October 29, 1998, it was determined that containers made of plastic known as totes that were used to ship various small automobile replacement parts from Japan to the United States met the requirements necessary for designation as IITs. In HQ 112534, dated January 25, 1993, it was held that reusable plastic boxes designed to transport automotive strut components qualified as IITs.
Furthermore, we have held that articles, which consist of pallets and tops, plastic outer rings, plastic and cardboard pads, and form trays used to transport ceramic logs qualify as IITs when these parts were assembled together. See, HQ 115108, dated August 24, 2000. Most recently, CBP has held that corrugated cardboard and winding coils upon which steel is rolled qualify as IITs. See, HQ 116045, dated October 23, 2003.
In this case, Baker Petrolite has over 10,000 stainless steel totes (IBCs) in use. It is estimated that the lifespan of the totes is between 15 and 20 years. Baker Petrolite has over 500 IMO 1 skid tanks that have a lifespan of between 20 to 40 years. Baker Petrolite has over 3,400 carbon steel cylinders in use with a lifespan between 20 to 40 years.
All three types of articles are used as containers or holders in sufficient numbers and have durability substantial enough to qualify them as IITs pursuant to 19 U.S.C. § 1322(a).
HOLDING:
The stainless steel totes (IBCs), carbon steel IMO 1 skid tanks, and carbon steel cylinders described above qualify as instruments of international traffic within the meaning of 19 U.S.C. §1322(a) and may be released pursuant to 19 CFR § 10.41a.
Sincerely,
Glen E. Vereb
Chief
Cargo Security, Carriers and Immigration Branch