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HQ 114187




April 23, 1998

BOR-4-07-RR:IT:EC 114187 CC

CATEGORY: CARRIER

Richard T. Senior
Transportation Coordinator
REHAU Incorporated
P.O. Box 1706
Leesburg, VA 20177

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

Dear Mr. Senior:

This is in response to a letter of November 20, 1997, requesting that we designate certain "aluminum shipping racks" as instruments of international traffic (IIT's).

FACTS:

You state that the subject containers are aluminum shipping racks designed for transporting window lineal extrusions of PVC. The racks, valued at about $615 each, measure approximately 93 inches in length, 12 « inches in width, and 12 ¬ inches in height. The 1,230 racks used by REHAU have a duration of approximately 10 years. You state that all of the racks will be used exclusively for cross border traffic by truck between REHAU's Canadian manufacturing facilities, located in Prescott, Ontario and Winnipeg, Manitoba, and your customers in the midwestern and eastern United States.

ISSUE:

Whether the subject racks 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. Consequently, we find that the subject racks qualify as IIT's pursuant to 19 U.S.C. ? 1322(a).

HOLDING:

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

Sincerely,

Jerry Laderberg
Chief
Entry Procedures and Carriers

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