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HQ 114844





November 18, 1999
BOR-4-07-RR-IT-EC 114844 GOB

CATEGORY: CARRIER

Terry Moran
Director of Import/Export Affairs and Immigration U.S. Sea Launch Company
2700 Nimitz Road
Long Beach, CA 90802

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

Dear Mr. Moran:

This is in response to your letter of September 15, 1999 on behalf of U.S. Sea Launch LLC.

FACTS:

You request that three transportation frames with covers and end caps be designated as instruments of international traffic within the meaning of 19 CFR 10.41a. You describe the pertinent facts as follows:

All of the above are specially designed to transport our rocket stages that are manufactured in the Ukraine. We believe all the items in question meet the requirements of instruments of international traffic (IIT). PO Yuzhmash, the supplier of the above items, is a partner in the Sea Launch consortium. Sea Launch provides commercial space launch capabilities from an ocean going platform. U.S. Sea Launch LLC will be the importer of record and plans to off load all of the above items at our private terminal in Long Beach, California...

All the items in question are specifically designed as holders for either the Zenit 1st rocket stage or Zenit 2nd rocket stage. The transportation frame supports the rocket stage during ocean transportation while the end caps and cover protect the rocket stages from the environment. Both the transportation frame and end caps are substantial since they are made out of steel and support a rocket stage weighing as much as 20 metric tons. The transportation frames weigh either 10 or 20 metric tons and the end caps weigh 300 or 500 kilograms depending on which rocket stage they support. The cover is made out of canvas and rubber and is either 33 meters or 11 meters in length depending on the rocket stage it is protecting. The cover goes around the rocket stage and end caps and is connected with bolts. Each rocket stage requires 2 end caps, one frame and one cover. After the rocket stages are unloaded, the end caps, frame and cover will be removed from the rocket stage and returned to the Ukraine for reuse. U.S. Sea Launch currently has plans for five launches per year and anticipates this program to last 10 years.

You further advised that there are three of the transportation frames (with covers and end caps) that will be used on a recurrent basis in the transportation, e.g., at a given time, one frame would be in the United States, one frame would be in Russia, and one frame would be in transit.

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) provides in pertinent 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 of 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 we are unable to designate the subject transportation frames (with covers and end caps) as instruments of international traffic because they will not be used in significant numbers in international traffic. The use of three transportation frames (on a recurrent basis) does not constitute a use in significant numbers in international traffic.

This determination is consistent with Ruling 113041 dated June 1, 1994, wherein we held that the following articles could not be designated as instruments of international traffic because they were not used in significant numbers in international traffic: 22 piston/ram pans; six carts; five steel modules; 16 motor tables or stands; and 16 wooden crates or skids with wrappers.

HOLDING:

We do not designate the subject transportation frames (with covers and end caps) as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a because they will not be used in significant numbers in international traffic.

Sincerely,

Jerry Laderberg
Chief,

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