OT:RR:BSTC:CCR H340856 KAM
Ms. Annie Lavaleee
1717 Diplomacy Row
Orlando, FL 32809
RE: Instruments of International Traffic; 19 U.S.C. § 1332(a); §§ 10.41a(a)(1), 10a(a)(2); Solotech U.S. Corporation; CB5 Carbon Light Emitting Diode (LED) tile frames.
Dear Ms. Lavallee:
This is in response to your July 25, 2024, ruling request on behalf of Solotech U.S. Corporation (“Solotech”). In your request you inquire whether CB5 Carbon Light Emitting Diode tile frames qualify as “instruments of international traffic” (“IIT”) within the meaning of 19 U.S.C. § 1332(a). Our decision follows.
FACTS:
Solotech is an audiovisual and entertainment company that uses Light Emitting Diode (“LED”) tiles to provide state-of-the-art production lighting. The CB5 Carbon LED tile frames (“subject merchandise” or “frames”) under consideration are identified as steel and aluminum frames. The primary use of the frames is to surround the CB5 Carbon LED tiles to protect the tiles. The frames are designed to hold the LED tiles given that an LED tile cannot travel by itself without damage to the tile. The frames are loaded in shipping dollies and carts for transport purposes. The frames have an expected life cycle of 10 years and can be reused by Solotech for future international traffic. There are currently 3,103 CB5 Carbon LED tile frames used in international traffic, that are expected to make between 200 and 300 trips per year with variable quantities per shipment depending on the needs of the event.
Solotech avers that the subject steel and aluminum frames that surround the LED tile frames qualify as Instruments of International Traffic (“IIT”s) and therefore, should be classified under subheading 9803.00.50, Harmonized Tariff Schedule of the United States (“HTSUS”). Below are images that depict the steel/aluminum frames:
ISSUE:
Whether the subject steel and aluminum frames designed to hold LED tiles qualify for consideration as IIT within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
LAW AND ANALYSIS:
Per 19 C.F.R. § 141.4(a), “all merchandise imported into the United States is required to be entered, unless specifically excepted.” The four exceptions to the requirement of entry are listed under 19 C.F.R. § 141.4(b), one of which is instruments of international traffic (“IIT”). See 19 C.F.R. § 141.4(b)(3).
Subheading 9803.00.0, HTSUS provides for the duty-free treatment of:
Substantial containers and holders, if products of the United States (including shooks and staves of United States production when returned as boxes or barrels containing merchandise), or if of foreign production and previously imported and duty (if any) thereon paid, or if of a class specified by the Secretary of the Treasury as instruments of international traffic, repair components for containers of foreign production which are instruments of international traffic, and accessories and equipment for such containers, whether the accessories and equipment are imported with a container to be reexported separately or with another container, or imported separately to be reexported with a container.
(Footnote and emphasis added).
Subchapter 98 of the HTSUS only applies to:
(a) Substantial containers or holders which are subject to tariff treatment as imported articles and are:
(i) Imported empty and not within the purview of a provision which specifically exempts them from duty; or
(ii) Imported containing or holding articles, and which are not of a kind normally sold therewith or are entered separately therefrom; and
(b) Certain repair components, accessories and equipment.
See U.S. Note 1, et seq., Chapter 98, HTSUS.
Pursuant to 19 U.S.C. § 1322(a), IITs shall be excepted from the application of the Customs laws to the extent that such terms and conditions are prescribed in regulations or instructions. The relevant CBP regulations implementing that statute are found at 19 C.F.R. § 10.41a(a)(1) which provides in pertinent part:
Lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics, arriving (whether loaded or empty) in use or to be used in the shipment of merchandise in international traffic are hereby designated as “instruments of international traffic” [. . .] The Commissioner of Customs [now CBP] is authorized to designate as instruments of international traffic […] such additional articles or classes of articles as he shall find should be so designated.
19 C.F.R. § 10.41a(a)(1) (emphasis added).
Such instruments may be released without entry or the payment of duty, subject to the provisions of this section.
To qualify for entry-free and duty-free treatment as IITs under the aforementioned statutory and regulatory authority, the article must be a substantial container or holder. As stated above, CBP is authorized to designate as an IIT such additional articles not specifically noted in 19 C.F.R. § 10.41a(a)(1). To qualify as an IIT within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1), an article used as a container or holder must be: (1) substantial, (2) suitable for and capable of repeated use, and (3) used in significant numbers in international traffic. See HQ H291037 (Jan. 9, 2018); HQ H016491 (Oct. 1, 2007); HQ 114150 (Dec. 12, 1997); HQ 107545 (May 7, 1985); Treas. Dec. 71-159, Cust. B. & Dec. 296 (June 18, 1971); 99 Treas. Dec. 533, No. 56247 (Aug. 26, 1964).
Based upon review of the submission and information provided, the subject steel and aluminum frames are containers that are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. They are substantial in that they are made of steel and aluminum and the component parts have an average lifespan of 10 years. See, HQ H296743 dated July 5, 2018. They are used in significant numbers in international commerce, currently 3,103 CB5 Carbon LED tile frames used in international traffic. The frames are suitable for and capable of reuse by Solotech, for the transportation of other LED tiles around the world in around 200-300 expected trips per year. Based on the foregoing, the subject aluminum and steel frames intended to hold CB5 Carbon LED tile frames are designated as IITs; therefore, they qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1).
HOLDING:
The subject CB5 Carbon Light Emitting Diode tile frames qualify for treatment as instruments of international trade within the meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(1).
Sincerely,
W. Richmond Beevers
Chief, Cargo Security, Carriers, and Restricted Merchandise
Office of International Trade, Regulations & Rulings
U.S. Customs and Border Protection