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HQ 113265


November 2, 1994

BOR-4-07-CO-R-IT-C 113265 GOB

CATEGORY: CARRIER

Jeffrey L. Snyder, Esq.
Graham & James
2000 M Street, N.W.
Suite 700
Washington, D.C. 20036-3307

RE: Instruments of international traffic; 19 U.S.C. 1322; 19 CFR 10.41a; Plywood containers
Dear Mr. Snyder:

This is in response to your letter dated October 28, 1994 on behalf of Tomen America, Inc. ("Tomen").

FACTS:

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

Your letter states:

The containers in question are returnable plywood pallet collars called "Vikontainers"...

...There are four different sizes of containers...The standard size is 1.077 meters long, 1.077 meters wide, and 0.980 meters deep. The plywood comes in either 6 or 12.5 millimeter thicknesses. The collar slips over merchandise situated on pallets and is sealed by a plywood lid that allows for safe stacking. The Vikontainer fits most standard pallet sizes and other sizes can be made to order. The Vikontainers are able to be stacked on top of one another for increased storage capacity.
...
The projected use of the Vikontainer will be for shipping engines to the U.S. The lifespan of the container is expected to be four to five years.
...
...The plywood collar is durable and reusable.

You informed us telephonically that Tomen initially expects to use 100 to 150 of these plywood containers. Over time, it expects the number in use to be in the range of 300.

ISSUE:

Whether the subject plywood containers 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 plywood containers meet the requirements to be designated as instruments of international traffic.

HOLDING:

The subject plywood containers 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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