HQ 0112801 - Instruments of International Traffic; Plastic Drums; 19 U.S.C. 1322; 19 CFR 10.41a. - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1994 HQ Rulings > HQ 0112786 - HQ 0112925 > HQ 0112801

HQ 112801

October 8, 1993

BOR-7-07-CO-R-IT-C 112801 GOB

CATEGORY: CARRIER

Mr. Ralph C. Meola
Rhone-Poulenc
Specialty Chemicals Division
Logistics Department
CN 7500
Cranbury, New Jersey 08512-7500

RE: Instruments of International Traffic; Plastic Drums; 19 U.S.C. 1322; 19 CFR 10.41a.
Dear Mr. Meola:

This is in response to your letter dated July 2, 1993, which requested that certain open head plastic drums be determined to be instruments of international traffic within the meaning of 19 CFR 10.41a.

FACTS:

Rhone-Poulenc ("Rhone") has purchased 12,200 open head plastic drums to be used on a continuous basis for the importation of a certain pesticide from the United Kingdom and France. The drums were manufactured in the United States. The importer or shipper of the drums will be Rhone-Poulenc Inc. or Rhone-Poulenc Ag Company, which is a wholly-owned subsidiary of Rhone-Poulenc Inc. You have submitted certain documentation with respect to the manufacture of the drums.

ISSUE:

Whether the open head plastic drums used to import certain pesticides from the United Kingdom and France 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:

19 U.S.C. 1322(a) states in part:

Vehicles 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 instructions of the Secretary of the Treasury.

The Customs 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.

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.

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; the article must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. See Headquarters decisions 108084, 108658, 109665, and 109702.

The concept of reuse pertains to commercial shipping or transportation purposes, and not incidental or fugitive uses. Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at p. 99. See Holly Stores, Inc. v. United States, 697 F.2d 1387 (Federal Circuit, 1982). In Holly Stores, the court determined that reuse "has been consistently interpreted to mean practical, commercial reuse, not incidental reuse."

After a review of the information submitted, we determine that the open head plastic drums meet the requirements to be designated as instruments of international traffic.

HOLDING:

The subject open head plastic drums are designated as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a.

Sincerely,

Arthur P. Schifflin
Chief

Previous Ruling Next Ruling