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HQ 113254


October 24, 1994

BOR-4-07-CO-R-IT-C 113254 GOB

CATEGORY: CARRIER

Gregory Conyers
Assistant Import Manager
Sumitrans Corporation
900 Fourth Avenue
Suite 1510
Seattle, Washington 98164

RE: Instruments of international traffic; 19 U.S.C. 1322; 19 CFR 10.41a; Steel baskets
Dear Mr. Conyers:

This is in response to your letter dated October 12, 1994 on behalf of Daikin Clutch Corporation.

FACTS:

You request that certain steel baskets be designated as instruments of international traffic within the meaning of 19 CFR 10.41a.

You state:

The baskets are constructed of a steel bar mesh with each basket measuring L 100 cm x W 80 cm x H 73 cm (39.4"x31.5"x28.7"). The diameter of the steel bars that comprise the basket is 6 mm. The baskets are open on top, and the floor is also constructed of the steel bar mesh. The feet at the bottom of the baskets are made suitable for stacking -- usually four high. The capacity of each basket will be approximately 1,500 kgs or 3,307 lbs. The life-span of each basket is expected to be three years.

The baskets will be used within 20 foot ocean containers to transport clutch parts among the countries of Japan, England, United States, India, South Korea, and Thailand. There will be 3,780 baskets in circulation.

ISSUE:

Whether the subject steel baskets 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. Instruments so designated are also stated to be duty-free in subheading 9803.00.50, Harmonized Tariff Schedule of the United States.

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.

After a review of the information submitted, we determine that the steel baskets meet the requirements to be designated as instruments of international traffic.

HOLDING:

The subject steel baskets 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

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