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HQ 113790




February 21, 1997

BOR-7-07-RR:IT:EC 113790 CC

CATEGORY: CARRIER

R. Bruce Warner
Import/Export Manager
Panasonic
5105 South National Drive
Knoxville, TN 37914-6518

RE: Instruments of International Traffic; 19 U.S.C. ? 1322(a); 19 CFR ? 10.41a

Dear Mr. Warner:

This is in response to your letter of December 4, 1996, requesting that we designate certain collapsible containers as instruments of international traffic (IIT's).

FACTS:

You state that Panasonic plans to use the subject containers for the importation and exportation of aluminum capacitor foil in rolls that are .5 meters wide and in various lengths. The containers are made of 3/4-inch plywood with steel supports on all edges. They are designed to collapse to minimize the shipping cost when returned to your vendor. You state that the subject containers are reusable.

ISSUE:

Whether the subject collapsible plywood containers with steel supports 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:

Section 322(a), Tariff Act of 1930, as amended (19 U.S.C. ? 1322(a)) provides that "[v]ehicles 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 instruction of the Secretary of the Treasury."

The Customs Regulations issued under the authority of section 322(a) are contained in section 10.41a (19 CFR ? 10.41a). Paragraph (a)(1) of section 10.41a designates lift vans, cargo vans, shipping tanks and certain other named articles as IIT's and states that other articles may be designated as IIT's by the Commissioner of Customs in a decision to be published in the weekly Customs Bulletin. Once designated as IIT's, these items may be released without entry or the payment of duty, subject to the provisions of section 10.41a.

To qualify as an instrument of international traffic within the meaning of 19 U.S.C. ? 1322(a) and the regulation promulgated pursuant thereto (19 CFR ? 10.41a et. seq.), 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, subheading 9803.00.50, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), and former Headnote 6(b)(ii), Tariff Schedules of the United States (TSUS), as well as Headquarters Ruling Letters (HQs) 104766, dated August 22, 1988; 109665, dated September 12, 1988; and 109702, dated September 30, 1988.

Upon review of the request and accompanying documentation, we are of the opinion that the containers in question are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. Although we have not ruled on the same merchandise in the past, we have found that collapsible hardwood containers of reinforced steel are IIT's (see, HQ 112503, dated December 2, 1992) and plywood "tops and bottoms" are IIT's (see, 105546, dated August 11, 1982). Consequently, we find that the subject collapsible plywood containers with steel supports qualify as IIT's pursuant to 19 U.S.C. ? 1322(a).

HOLDING:

The subject collapsible plywood containers with steel supports qualify as instruments of international traffic and may be released pursuant to 19 CFR ? 10.41a.

Sincerely,

Acting Chief
Entry and Carrier Rulings Branch

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