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HQ 110300


September 1, 1989

BOR 7-07-CO:R:P:C 110300 BEW

CATEGORY: CARRIER

Mr. John F. McManus
C. Itoh Express (America) Inc.
335 Madison Avenue
New York, New York 10017

RE: Collapsible steel packing crates as instruments of international traffic

Dear Mr. McManus:

This is in reference to your letter of June 1, 1989, in which you asked that we classify certain collapsible steel crates as instruments of international traffic (IIT).

FACTS:

You state that you intend to use collapsible steel packing crates (crates) for shipments of automobile components (engines) from Japan for assembly in the United States. You state that the crate is designed to provide additional stability during shipping, and will be packed inside a forty foot shipping container. It will be returned empty to Japan for re-use.

You state that the crates will be manufactured in Japan and shipped to S.I.A. (Subaru-Isuzu Automotive) Inc., in Lafayette, Indiana. You state that the goods will be transported via I.T. entry from the ports of Los Angeles and Long Beach, California, Seattle and Tacoma, Washington, and Chicago, Illinois, for entry in Indianapolis, Indiana.

You state that when collapsed and empty approximately 130 crates will be fitted into one container. When extended and loaded, only 3 to 6 crates will be included in each container.

You state that 2500 to 3000 such crates will be used, and that they will each bear an aluminum tag showing the Isuzu logo and country of origin information.

ISSUE:

Whether the described collapsible steel packing crates used for the transportation of automobile components (engines) may be treated as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and section 10.41a of the Customs Regulations (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 IIT, of any class specified by the Secretary of the Treasury, shall be granted the customary exceptions from the application of the customs laws to the extent and subject to such terms and conditions as may be prescribed in regulations or instructions of the Secretary of the Treasury."

The Customs Regulations issued under the authority of section 322(a) are in section 10.41a (19 CFR 10.41a). Paragraph (a)(l) of section 10.41a designates as IIT lift vans, cargo vans, shipping tanks and certain other named articles and states that other articles may be designated as IIT by the Commissioner of Customs in decisions to be published in the weekly Customs Bulletin. These IIT may be released without entry or the payment of duty, subject to the provisions of section 10.41a.

To qualify as an "IIT" within the meaning of section 322(a), Tariff Act of 1930, as amended (19 U.S.C. 1322(a)), and the regulations issued thereunder (19 CFR 10.41a et seq.), an article must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic.

We find that the crates under consideration are used as containers or holders, that they are substantial, suitable for and capable of repeated use, and that they are used in significant numbers in international traffic. We further find that the crates under consideration are similar to crates which were designated as IIT in Treasury Decision 70-236 (steel frame platforms, with steel mesh sides, used to carry snowmobile
parts), and similar to stands or cases composed of steel, wood or steel mesh coated with fiberglass, used by Rolls Royce for transportation of parts of an aircraft engine which were designated as IIT in Treasury Decision 74-195.

HOLDING:

The collapsible steel packing crates under consideration qualify for treatment as IIT and may be released under the procedures set forth in section 10.41a, Customs Regulations.

Sincerely,

B. James Fritz
Chief

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