BOR-4-07-RR-IT-EC 116288 GOB
Theresa Hebert
The Boeing Company
Office of Internal Governance – Compliance
Mail Code 1F-20
P.O. Box 3707
Seattle, WA 98108
RE: Container Security Units; Instruments of International Traffic; 19 U.S.C. 1322; 19 CFR 10.41a
Dear Ms. Hebert:
This is in response to your letter of July 29, 2004, in which you request that certain Container Security Units be designated as instruments of international traffic (IIT’s) pursuant to 19 U.S.C. 1322(a) and 19 CFR 10.41a.
FACTS:
You describe the pertinent facts as follows:
The subject articles requested for designation as IIT are Container Security Units (CSU). The CSU units are currently being tested in connection with Operation Safe Commerce and are intended to detect unauthorized intrusions into cargo containers.
The CSU is mounted inside a freight container. When the armed mode is activated by the carrier, shipper or other authorized party, the CSU will detect intrusion by sensing door opening, human motion or light. Through use of wireless communication, any intrusion event can be transmitted immediately to the carrier, security or government authorities. . . .
The CSU will not be a permanently installed component of the container. The CSU units can be removed and used in other containers. This optimizes the efficiency and effectiveness of the CSU unit.
Although initially used for ocean containers, these CSUs or similar units can be used for truck, rail and air freight containers. The CSUs may enter and depart the Customs territory of the United States as components of the containers in which they are installed, or as separate articles while they are being sent to the origin of a container for installation.
. . . It is expected there will be several variations [of the CSU] in use. . . . Details of the physical and operational functions may vary according to version and application.
Your office advised the following. Each CSU contains the following: a main unit which houses the electronics, a door sensor, and three to four antennas. Currently 12 CSU’s are in use. Twenty will be added each week until 100 are employed. Ultimately, the number in use may be much greater. The average length of service of a CSU is estimated at several years, perhaps as many as seven; this will depend in part on changes in the technology.
ISSUE:
Whether the subject items 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:
Title 19, United States Code, § 1322(a) (19 U.S.C. 1322(a)) provides in pertinent part, that “[v]ehicles and other instruments of international traffic, …, 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 instructions …”
The U.S. Customs and Border Protection (“CBP”) Regulations issued under the authority of 19 U.S.C. 1322 are contained in 19 CFR 10.41a. 19 CFR 10.41a(a)(1) designates lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics as instruments for international traffic.
Section 10.41a(a)(1), CBP Regulations (19 CFR 10.41a(a)(1)) also authorizes the Commissioner of Customs to designate as instruments of international traffic such additional articles or classes of articles as he shall find should be so designated. Instruments so designated may be released without entry or the payment of duty, subject to the provisions of 19 CFR 10.41a.
Section 10.41a(a)(3), CBP Regulations (19 CFR 10.41a(a)(3)) provides: “As used in this section, ‘instruments of international traffic’ includes the normal accessories and equipment imported with any such equipment which is a ‘container’ as defined in Article 1 of the Customs Convention on Containers.”
To qualify as an instrument of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a, an article must be used as a container or holder. Further, the article must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic.
After a review of the information submitted, we determine that the subject CSU’s are accessories or equipment of containers which are IIT’s. Therefore, the CSU’s qualify as instruments of international traffic pursuant to 19 CFR 10.41a(a)(3). Accordingly, they are so designated.
HOLDING:
The subject CSU’s are hereby designated as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a. This designation includes CSU’s which have been installed in containers and CSU’s imported as separate articles for installation in containers.
Sincerely,
Glen E. Vereb
Chief,
Entry Procedures and Carriers Branch