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HQ 114150




December 12, 1997
BOR-4-07-RR-IT-EC 114150 GOB

CATEGORY: CARRIER

Donald S. Simpson
Vice President
Barthco Trade Consultants, Inc.
7575 Holstein Avenue
Philadelphia, PA 19153

RE: Instruments of international traffic; 19 U.S.C. 1322; 19 CFR 10.41a; KLT's

Dear Mr. Simpson:

This is in response to your letter of October 15, 1997 on behalf of SKF USA, Inc. ("SKF").

FACTS:

SKF imports various types of ball bearings and roller bearings and their component parts into the United States. It proposes to use certain holders, known in the trade as "KLT's" to transport the bearings and their parts.

You request that these holders or KLT's be designated as instruments of international traffic within the meaning of 19 CFR 10.41a.

You state the following. The KLT's are made of rigid polypropylene plastic. SKF proposes primarily to use KLT's of the following sizes: 400mm x 300mm x 147mm and 300mm x 200mm x 147mm. You state that the KLT's are substantial and capable of repeated use. You have provided samples of the KLT's in the two sizes described above.

In a facsimile transmission of December 8, 1997, you state that approximately 39,000 of the larger KLT's and approximately 26,000 of the smaller KLT's will be used in international transportation into the United States each year. It is expected that each of the KLT's will be imported between four and six times each year.

ISSUE:

Whether the subject items 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. Further, 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 KLT's, as described above, meet the requirements to be designated as instruments of international traffic.

HOLDING:

The KLT's, as described above, are designated as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a.

Sincerely,

Jerry Laderberg
Chief,

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