BOR 7-07-CO:R:P:C 110300 BEW
Mr. John F. McManus
C. Itoh Express (America) Inc.
335 Madison Avenue
New York, New York 10017
RE: Collapsible steel packing crates as instruments of
international traffic
Dear Mr. McManus:
This is in reference to your letter of June 1, 1989, in
which you asked that we classify certain collapsible steel crates
as instruments of international traffic (IIT).
FACTS:
You state that you intend to use collapsible steel packing
crates (crates) for shipments of automobile components (engines)
from Japan for assembly in the United States. You state that the
crate is designed to provide additional stability during
shipping, and will be packed inside a forty foot shipping
container. It will be returned empty to Japan for re-use.
You state that the crates will be manufactured in Japan and
shipped to S.I.A. (Subaru-Isuzu Automotive) Inc., in Lafayette,
Indiana. You state that the goods will be transported via I.T.
entry from the ports of Los Angeles and Long Beach, California,
Seattle and Tacoma, Washington, and Chicago, Illinois, for entry
in Indianapolis, Indiana.
You state that when collapsed and empty approximately 130
crates will be fitted into one container. When extended and
loaded, only 3 to 6 crates will be included in each container.
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You state that 2500 to 3000 such crates will be used, and
that they will each bear an aluminum tag showing the Isuzu logo
and country of origin information.
ISSUE:
Whether the described collapsible steel packing crates used
for the transportation of automobile components (engines) may be
treated as instruments of international traffic within the
meaning of 19 U.S.C. 1322(a) and section 10.41a of the Customs
Regulations (19 CFR 10.41a).
LAW AND ANALYSIS:
Section 322(a), Tariff Act of 1930, as amended (19 U.S.C.
1322(a)), provides that "[v]ehicles and other IIT, of any class
specified by the Secretary of the Treasury, shall be granted the
customary exceptions from the application of the customs laws to
the extent and subject to such terms and conditions as may be
prescribed in regulations or instructions of the Secretary of the
Treasury."
The Customs Regulations issued under the authority of
section 322(a) are in section 10.41a (19 CFR 10.41a). Paragraph
(a)(l) of section 10.41a designates as IIT lift vans, cargo vans,
shipping tanks and certain other named articles and states that
other articles may be designated as IIT by the Commissioner of
Customs in decisions to be published in the weekly Customs
Bulletin. These IIT may be released without entry or the payment
of duty, subject to the provisions of section 10.41a.
To qualify as an "IIT" within the meaning of section 322(a),
Tariff Act of 1930, as amended (19 U.S.C. 1322(a)), and the
regulations issued thereunder (19 CFR 10.41a et seq.), an article
must be substantial, suitable for and capable of repeated use,
and used in significant numbers in international traffic.
We find that the crates under consideration are used as
containers or holders, that they are substantial, suitable for
and capable of repeated use, and that they are used in
significant numbers in international traffic. We further find
that the crates under consideration are similar to crates which
were designated as IIT in Treasury Decision 70-236 (steel frame
platforms, with steel mesh sides, used to carry snowmobile
-3-
parts), and similar to stands or cases composed of steel, wood or
steel mesh coated with fiberglass, used by Rolls Royce for
transportation of parts of an aircraft engine which were
designated as IIT in Treasury Decision 74-195.
HOLDING:
The collapsible steel packing crates under consideration
qualify for treatment as IIT and may be released under the
procedures set forth in section 10.41a, Customs Regulations.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch