CON-9-12 CO:R:C:E 221393 C
W.J. Boyd
Operations Manager
F.W. MYERS & CO., INC.
6645 N.E. 78th Court, Suite C-6
Portland, Oregon 97218
RE: Nylon lumber slings; instruments of international traffic;
19 USC 1322(a); 19 CFR 10.41a; T.D. 80-145; 19 USC 1313 drawback
not applicable; subheading 9813.00.45, HTSUSA, not applicable;
subheading 9801.00.10, HTSUSA; V.S.I.E.
Dear Mr. Boyd:
This responds to your letter of April 13, 1989, concerning
duty-free entry for lumber slings used to load and unload lumber
onto and from your client's vessels. You requested that we
consider the feasibility of duty-free entry for the slings under
the Customs laws and regulations, making several suggestions in
that regard. We apologize for the delay in responding.
Briefly, we understand the facts as follows: The slings are
circular bands of nylon webbing. Units of lumber are placed
within the webbing to permit loading of the lumber onto the
vessel. Once aboard, the slings remain on the lumber to permit
unloading at the port of destination. The slings are later
returned to the United States and used again in the same manner.
You suggested several possibilities for obtaining duty-free
entry for the slings. Your first suggestion, a refund of duty
under the drawback law, 19 U.S.C. 1313, cannot be sustained. The
slings, after entry and payment of duty upon return to the United
States, are not used in the manufacture or production of other
articles as required under manufacturing drawback, nor are they
entitled to same condition drawback because they are used in the
United States. Duty-free entry under subheading 9813.00.45 of
the Harmonized Tariff Schedule (HTSUS), your second suggestion,
is not likely on the facts you submitted because the subheading
applies, in pertinent part, to "containers or other articles in
use for covering or holding merchandise . . . during
transportation and suitable for reuse for that purpose."
(Emphasis added.) Because the slings are not in use upon their
return to the United States, they do not qualify under the
subheading.
Your third suggestion is subheading 9801.00.10, HTSUS,
pertaining to products of the United States exported from the
United States and returned after temporary use abroad, without
having been advanced in value or improved in condition. If the
slings are products of the United States, they may qualify for
duty-free entry under this provision. They are exported from the
United States for only temporary use abroad. They are then
returned after such use without having been advanced or improved.
If all regulatory requirements are met, duty-free entry should
apply upon importation. (See part 10 of the Customs
Regulations.)
Finally, you suggest resort to a V.S.I.E. (vessel supplies
for immediate export) for duty-free treatment of the slings. A
V.S.I.E. is a kind of bond movement used primarily upon the
withdrawal of vessel supplies from a bonded warehouse for
immediate transportation to the departing vessel or aircraft upon
which the supplies will be exported. This too is inapplicable to
your situation.
It is noted for your information that Treasury Decision 80-
145 held that similar slings could qualify as instruments of
international traffic (IIT's) under 19 U.S.C. 1322(a) and 19 CFR
10.41a. That ruling applied to slings that met the following
criteria: They are (1) substantial, (2) suitable for and capable
of repeated use, (3) used in significant numbers in international
traffic, (4) used to hold merchandise from the time of
manufacture until it reaches its destination or is unladen upon
importation, and (5) identifiable and distinguishable from other
similar slings by permanent markings. From the facts submitted,
it appears that the slings in question would not meet the fourth
criterion above.
If you have any further questions regarding this letter,
please contact our office (202/566-5856). If you have any
further questions about the subject of IIT's, please contact the
Carrier Rulings Branch (566-5706). Any procedural/operational
questions should be directed to the district office where you
intend to conduct your transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division