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HQ 113855




August 14, 1997

BOR-4-07-RR:IT:EC 113855 CC

CATEGORY: CARRIER

Bruce N. Shulman, Esq.
Stein, Shostak, Shostak & O'Hara
Suite 807
1620 L Street, N.W.
Washington, D.C. 20036-5605

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

Dear Mr. Shulman:

This is in response to your letter of February 21, 1997, on behalf of Marubeni America Corporation, requesting that we designate certain bobbins and wooden crates as instruments of international traffic (IIT's).

FACTS:

You state that the bobbins, which are constructed of steel and are valued at approximately $700 each, will be imported into the U.S. holding iron wire that has been plated with brass. The bobbins, also known as reels, weigh 60 kilograms and measure 340 millimeters high and 300 millimeters in length. The wire, which varies between 0.1 millimeters to .23 millimeters in thickness, is used to cut silicon ingot during the manufacture of electronic components. A bobbin loaded with wire will be placed on a spindle, and the wire will be taken up by a second bobbin which is empty. While being emptied from the full bobbin to the empty bobbin, the wire will be used like a saw to cut silicon ingots. When wound onto the take-up bobbin, the wire is no longer suitable for use, is considered scrap, and must be remanufactured before it can be used again. For this purpose, the take-up bobbin with the used wire on it will be returned to Japan, and the imported bobbin which originally contained the wire will be used as a take-up bobbin. The life expectancy of the subject bobbins is approximately ten round trips from Japan to the U.S.

The wooden shipping crates, which are valued at approximately $300 each, are made of plywood and are attached to plastic pallets to facilitate transportation. They are specially constructed to contain six bobbins, weighing approximately 45 kilograms and measuring approximately 1068 millimeters in length and 780 millimeters in width. The wooden crates have a life expectancy of approximately three round trips from Japan to the U.S.

ISSUE:

Whether the subject bobbins and wooden crates 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. We have ruled that similar containers and holders qualify as IIT's. We have found that holders made of wood, base metal, or plastic or a combination thereof, known as spools, bobbins, cops, and pins, and designed to hold yarn or thread, qualify as IIT's. See, e.g., HQ 113554, dated August 31, 1995; HQ 111196, dated April 8, 1991; and Treasury Decision (T.D.) 56543. Also, in Headquarters Decision 106817, dated June 11, 1984, we found that metal spools used for the transportation of steel tire cord qualified as IIT's. See, also, T.D. 56247. Certain containers or holders constructed of plywood have qualified as IIT's. See, e.g., Headquarters Decision 105546, dated August 11, 1982, and T.D. 77-84. In Headquarters Decision 103073, dated January 11, 1978, we found that plastic trays and wooden pallets, used for the transportation of bobbins containing nylon, qualified as IIT's. Consequently, we find that the subject bobbins and wooden crates qualify as IIT's pursuant to 19 U.S.C. ? 1322(a).

HOLDING:

The subject bobbins and wooden crates qualify as instruments of international traffic and may be released pursuant to 19 CFR ? 10.41a.

Sincerely,

Jerry Laderberg
Acting Chief

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