BOR-7-07-RR:IT:EC 113687 CC
Bruce N. Shulman, Esq.
Stein, Shostak, Shostak & O'Hara
Suite 807
1620 L Street, N.W.
Washington, D.C. 20036-5605
RE: Instruments of International Traffic; 19 U.S.C. 1322(a);
19 CFR 10.41a
Dear Mr. Shulman:
This is in response to your letter of May 31, 1996, on
behalf of Nissan Motor Corporation and Marubeni Motor Service,
Inc., requesting that we designate certain metal containers as
instruments of international traffic (IIT's).
FACTS:
You state that the collapsible metal containers or racks,
with pockets to accommodate handling by fork trucks, will be used
to import automobile parts. In a supplemental submission, dated
January 29, 1997, you also requested that we find that three
additional types of containers, designated as RX1, RX1 with A01
extenders, and RX2, all of similar construction to those of the
original request except that they are not collapsible, be
designated as IIT's. All of the containers, manufactured in
Japan, have a life expectancy of 5 to 8 years.
Your clients advise you that all of the racks will be
imported into the U.S. containing automobile parts for Nissan's
U.S. Parts Distribution Centers. After the racks are emptied,
they will be stored at the Nissan facilities until there is a
sufficient quantity to fill a container (approximately 96 racks),
after which they will be returned to Japan for reuse in shipping
additional parts to the U.S. All racks, even if found damaged or
defective, will be shipped back to Japan, and at no time will any
of them be diverted into local traffic or used in any manner or
for any purpose other than as described above.
ISSUE:
Whether the subject metal containers may be designated as
instruments of international traffic within the meaning of 19
U.S.C. 1322(a) and 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 instruments of
international traffic, of any class specified by the Secretary of
the Treasury, 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 or instruction of
the Secretary of the Treasury."
The Customs Regulations issued under the authority of
section 322(a) are contained in section 10.41a (19 CFR 10.41a).
Paragraph (a)(1) of section 10.41a designates lift vans, cargo
vans, shipping tanks and certain other named articles as IIT's
and states that other articles may be designated as IIT's by the
Commissioner of Customs in a decision to be published in the
weekly Customs Bulletin. Once designated as IIT's, 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 within
the meaning of 19 U.S.C. 1322(a) and the regulation promulgated
pursuant thereto (19 CFR 10.41a 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 Schedules of the
United States (TSUS), as well as Headquarters Ruling Letters
(HQs) 104766, dated August 22, 1988; 109665, dated September 12,
1988; and 109702, dated September 30, 1988.
Upon review of the request and accompanying documentation,
we are of the opinion that the containers in question are
substantial, suitable for and capable of repeated use, and used
in significant numbers in international traffic. We have ruled
that collapsible steel containers, racks or crates, used to
import automobile parts, qualify as IIT's. See Headquarter
Ruling Letter (HQ) 110300, dated September 1, 1989; HQ 111163,
dated March 26, 1991; HQ 111703, dated October 22, 1991; and HQ
112303, dated August 14, 1992. In addition, we have ruled that
large boxes, bins and racks made of metal or wood, having as
integral parts thereof feed, lugs, or skids to facilitate
movement by fork lifts and similar devices qualify as IIT's. See
107832, dated December 12, 1985 and T.D. 56243. Concerning the
containers that are not collapsible, we have found similar
containers qualify as IIT's. See HQ 109378, dated April 28,
1988.
Consequently, we find that the subject metal containers qualify
as IIT's pursuant to
19 U.S.C. 1322(a).
HOLDING:
The subject metal containers qualify as instruments of
international traffic and may be released pursuant to 19 CFR
10.41a.
Sincerely,
Acting Chief
Entry and Carrier Rulings Branch