BOR-4-07-RR:IT:EC 114446 CC
Thomas J. O’Donnell, Esq.
20 North Wacker Drive
Suite 1416
Chicago, IL 60606
RE: IIT; accessories; aircraft pallet nets; 19 U.S.C. § 1322(a); 19 CFR § 10.41a
Dear Mr. O’Donnell:
This is in response to your letter of July 27, 1998, on behalf of Nordisk Aviation Products, Inc. (Nordisk), requesting that we designate certain aircraft pallet nets as accessories of instruments of international traffic (IIT’s).
FACTS:
You state that Nordisk imports aluminum alloy airline pallets from China. The pallets are specifically for use in a variety of aircraft. The pallets are sold to airlines and air cargo companies who utilize them in transporting cargo. The pallets come in a variety of sizes. Several examples are contained in your submission, including pallet sizes of 86" x 125" x 64" (88-inch pallet),
96" x 125" x 64" (98-inch pallet), and 96" x 238.5" x 96" (20-foot pallet). You state that the pallets have been designated as IIT’s by the Secretary of the Treasury in 19 CFR § 10.41a(a)(1), in which pallets are specifically listed.
You state that Nordisk is planning on importing aircraft pallet nets from Norway or Germany, or both, for use with the pallets, in the three sizes listed above. The net comes with fasteners and hooks to secure it to the particular size pallet. You believe that the pallet nets, fasteners, and hooks are specially designed for use as accessories and equipment for the pallets.
ISSUE:
Whether the subject aircraft pallet nets may be entered duty-free as accessories of instruments of international traffic within the meaning of 19 CFR § 10.41a(a)(2).
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, skids, pallets, 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. Items designated as IIT’s may be released without entry or the payment of duty, subject to the provisions of section 10.41a. The subject pallets fall within the class of items already designated as IIT’s pursuant to 19 CFR § 10.41a(a)(1).
Paragraph (a)(2) of section 10.41a (19 CFR § 10.41a(a)(2)) provides the following:
Repair components, accessories, and equipment for any container of foreign production which is an instrument of international traffic may be entered or withdrawn from warehouse for consumption without the deposit of duty if the person making entry or withdrawal from warehouse files a declaration ...that the accessory or equipment is for a container of foreign production which is an instrument of international traffic. The port director must be satisfied that the importer of the repair component, accessory or equipment had the declared intention at the time of importation.
In your letter you state the following concerning why the subject aircraft pallet nets, fasteners, and hooks should be considered accessories of instruments of international traffic:
The nets fit snugly around the pallet and secure the freight during the transportation move. They provide stability, support and shape to the pallets cargo while maximizing the load factor. Without a net, a pallet’s cargo is unsupported[.] Thus, the net is critical to the proper functioning of the pallet, and, therefore, is an accessory to the pallet. The net comes complete with fasteners and hooks to secure it to the particular size pallet. We believe that the fasteners and the hooks are parts of the nets, as they are specially designed for use with the nets. Moreover, the nets cannot be used as intended without the fasteners and hooks.
In addition, you have provided technical data and a technical manual, along with specifications and other information, to show that the subject nets are specifically designed for use with the pallets.
We believe that the information that you have provided shows that the subject nets, as wells as the fasteners and hooks, are designed and will be used for the pallets and serve as accessories to them. Therefore, based on the information that you have provided, we find that the subject nets, fasteners, and hooks are accessories of instruments of international traffic of foreign production and are eligible for duty-free treatment. We note that entry of this merchandise is required under 19 CFR § 10.41a(a)(2).
HOLDING:
The subject aircraft pallet nets may be entered duty-free as accessories of instruments of international traffic within the meaning of 19 CFR § 10.41a(a)(2).
Sincerely,
Jerry Laderberg
Chief
Entry Procedures and Carriers Branch