BOR-7-07-RR:IT:EC 113790 CC
R. Bruce Warner
Import/Export Manager
Panasonic
5105 South National Drive
Knoxville, TN 37914-6518
RE: Instruments of International Traffic; 19 U.S.C. 1322(a);
19 CFR 10.41a
Dear Mr. Warner:
This is in response to your letter of December 4, 1996,
requesting that we designate certain collapsible containers as
instruments of international traffic (IIT's).
FACTS:
You state that Panasonic plans to use the subject containers
for the importation and exportation of aluminum capacitor foil in
rolls that are .5 meters wide and in various lengths. The
containers are made of 3/4-inch plywood with steel supports on
all edges. They are designed to collapse to minimize the
shipping cost when returned to your vendor. You state that the
subject containers are reusable.
ISSUE:
Whether the subject collapsible plywood containers with
steel supports 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. Although we
have not ruled on the same merchandise in the past, we have found
that collapsible hardwood containers of reinforced steel are
IIT's (see, HQ 112503, dated December 2, 1992) and plywood "tops
and bottoms" are IIT's (see, 105546, dated August 11, 1982).
Consequently, we find that the subject collapsible plywood
containers with steel supports qualify as IIT's pursuant to 19
U.S.C. 1322(a).
HOLDING:
The subject collapsible plywood containers with steel
supports qualify as instruments of international traffic and may
be released pursuant to 19 CFR 10.41a.
Sincerely,
Acting Chief
Entry and Carrier Rulings Branch