BOR-7-07-RR:IT:EC 113916 CC
William Dalton
Import Manager
International Activities Corporation
849 Mitten Road, Suite 30
Burlingame, CA 94010
RE: IIT; polypropylene bags and straps; 19 U.S.C. 1322(a); 19
CFR 10.41a
Dear Mr. Dalton:
This is in response to your letter of April 21, 1997, on
behalf of Sacramento Bag Manufacturing Co. (SBMC), requesting
that we designate certain woven polypropylene bags and straps as
instruments of international traffic (IIT's).
FACTS:
You request three types of items be designated as IIT's.
The first, "flexible intermediate bulk containers," which you
refer to as "bulk bags," are 1 metric ton bags, constructed of
100% woven polypropylene material and weighing 5, 6, or 6.5
ounces per square meter. The bulk bags have an opening at the
top, a discharge spout at the bottom, and lifting loops for
movement by forklift or crane. The unfilled weight is
approximately 5 pounds, and the bulk bags come in the following
sizes, in inches: 35 X 35 X 46, 35 X 35 X 50, 35 X 35 X 53, and
36 X 36 X 53.
The second item, referred to by you as "small bags," are
made of 100% woven polypropylene, in either 800 or 850 denier.
These items are of simple construction, consisting of two
rectangular sheets of material hemmed along the edges. The
unfilled weight of the bags is approximately 3 ounces, which have
a carrying capacity of 25 to 50 kilograms. These bags come in
the following sizes, in inches: 24 X 40, 25 X 40, and 22 X 40.
The third item, straps made of 100% polypropylene and 140 or
280 inches in length, have a pulling capacity of 5000 pounds.
The straps are used to facilitate the movement and unloading of
commodities from the bulk bags by pulling the containers from the
inside of larger containers, such as standard ocean shipping
containers, and by attaching to commodities inside the bulk bag
to ease in unloading, again by pulling to remove the contents.
You state that the straps are not intended to be imported
separately as accessories within the meaning of 19 CFR
10.41a(a)(2).
You state that SBMC manufactures the bags, which are
principally used to transport agricultural products. The bags
will be imported in bulk quantities, and invoiced and consigned
to the ultimate purchaser or user of the bags. The user of the
bags will act as the importer, and file documents under the
procedures set forth in 19 CFR 10.41a under its own name as the
importer of record with a previously obtained continuous bond
pursuant to 19 CFR 113.66. Subsequent to release of the goods
by Customs, the importer will fill the bags with various
agricultural products destined for exportation.
ISSUE:
Whether the subject polypropylene bags and straps 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 polypropylene bags in question,
both the "bulk bags" and the "small bags," are substantial,
suitable for and capable of repeated use, and used in significant
numbers in international traffic. In addition, we have ruled
that polypropylene bags qualify as IIT's. See, e.g., Treasury
Decision (T.D.) 76-171; HQ 109696, dated September 12, 1988; HQ
111429, dated March 20, 1991; HQ 113220, dated September 28,
1994; and HQ 113407, dated April 25, 1995. Consequently, we find
that the subject polypropylene bags qualify as IIT's pursuant to
19 U.S.C. 1322(a).
To qualify as an IIT's, the straps must be used as a holder
or container. We have found for similar merchandise, sling belts
and steel slings, that such articles must be used as holders of
merchandise in their containers during shipment, and not merely
to lade and unlade the merchandise at their points of origin and
destination, to qualify as IIT's. See, e.g., C.S.D. 79-395,
T.D. 80-145, HQ 109039, dated August 20, 1987, and HQ 109193,
dated January 15, 1988. You state that the straps will be used to
facilitate the movement and unloading of commodities from the
bulk bags. Consequently, based on the above precedent, the
straps would not be considered containers or holders and would
not qualify as IIT's.
Finally, you note that the ultimate buyer, importer and user
of the IIT's will import the goods in its own name pursuant to a
bond filed in accordance with 19 CFR 113.66. You have
submitted a list of current customers of SBMC and request that
this ruling encompass future customers. In HQ 220204, dated
March 29, 1988, we found that U.S. fillers or users of
polypropylene bags invoiced to them, could have the bags released
as IIT's, provided that such users or fillers had filed a bond
pursuant to 19 CFR 113.66. We note that a copy of the ruling
designating the bags as IIT's would be attached to the invoice.
Based on HQ 220204, we find that future customers of SBMC could
use this ruling to qualify the polypropylene bags as IIT's.
HOLDING:
The subject polypropylene bags, both the "bulk bags" and the
"small bags," qualify as instruments of international traffic and
may be released pursuant to 19 CFR 10.41a. The straps do not
qualify as instruments of international traffic, and, therefore,
must be entered and are subject to any applicable duties and
quota.
Sincerely,
Jerry Laderberg
Acting Chief
Entry and Carrier Rulings Branch