United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2003 HQ Rulings > HQ 115170 - HQ 116013 > HQ 115893

Previous Ruling Next Ruling
HQ 115893





February 4, 2003

BOR-4-04-RR:IT:EC 115893 GEV

CATEGORY: CARRIER

Alan Dougherty
Safety and Compliance Supervisor
Sunbelt Transport
165 The Queensway, Suite 302
Toronto, ON, Canada M8Y 1HB

RE: Instruments of International Traffic; Canadian-based Truck; 19 U.S.C. § 1322

Dear Mr. Dougherty:

This is in response to your letter dated November 19, 2002, in furtherance of our letter to you dated October 21, 2002 (our file no. 115801) regarding a proposed transportation of merchandise by your company. Our ruling on this matter is set forth below.

FACTS:

Sunbelt Transport, a Canadian-based carrier, has been asked to be involved in a movement of merchandise loaded in Mexico, arriving in the United States at Laredo, Texas, and subsequently moved to a different location in the United States. During the transportation the truck trailers holding the merchandise will be sealed. Specifically, a Canadian-based truck would deliver the freight from Laredo to the second United States port where it will pick up a new load destined to Canada.

ISSUE:

Whether the use of a Canadian-based truck as described in the above scenario is violative of 19 CFR § 123.14(c).

LAW AND ANALYSIS:

Section 141.4, Customs Regulations (19 CFR § 141.4), provides that entry as required by title 19, United States Code, § 1484(a) (19 U.S.C. § 1484(a)), shall be made of every importation whether free or dutiable and regardless of value, except for articles specifically exempted by law or regulations from the requirements for entry.

Instruments of international traffic may be admitted without entry and payment of duty under the provisions of 19 U.S.C. § 1322. To qualify as instruments of international traffic, trucks having their principal base of operations in a foreign country must be arriving in the United States with merchandise destined for points in the United States, or arriving empty or loaded for the purpose of taking merchandise out of the United States (see 19 CFR § 123.14(a)). Furthermore, certain foreign-based vehicles engaged, in whole or in part, in the domestic carriage of merchandise that either originates from a location outside the United States or will be subsequently moved to a destination outside the United States, or such vehicles moving without a payload between two points in the same country, shall be considered as engaged in international traffic. (See Customs Bulletin of October 1, 1997, Vol. 31, No. 40, at pp. 7-13.)

A foreign truck tractor which arrives in the United States in international traffic towing a foreign trailer, either empty or loaded, constitutes a foreign "truck" as that term is used in §§ 123.14(a), (b), and (c)(1), Customs Regulations (19 CFR §§ 123.14(a), (b), and (c)(1)).

Section 123.14(c), Customs Regulations, states that with one exception, a foreign-based truck, admitted as an instrument of international traffic under § 123.14, shall not engage in local traffic in the United States. The exception, set out in § 123.14(c)(1), states that such a vehicle “may carry merchandisebetween points in the United States if such carriage is incidental to the immediately prior or subsequent engagement of that vehicle in international traffic.” This regulatory provision further provides that, “[a]ny such carriage by the vehicle in the general direction of an export move or as part of the return of the vehicle to its base country shall be considered incidental to its engagement in international traffic.”

Section 123.14(c)(2), Customs Regulations (19 CFR § 123.14(c)(2)), provides that a foreign-based truck trailer admitted as an instrument of international traffic may carry merchandise between points in the

United States on the return trip as provided by § 123.12(a)(2) which allows use for such transportation as is directly incidental to its economical and prompt departure for a foreign country. Section 123.14(c)(2) applies only to trailers and not to tractor-trailer units which, as was stated earlier, are considered trucks as that term is used in the Customs Regulations.

Section 10.41(d), Customs Regulations provides, in part, that any foreign-owned vehicle brought into the United States for the purpose of carrying merchandise between points in the United States for hire or as an element of a commercial transaction, except as provided for in § 123.14(c), is subject to treatment as an importation of merchandise from a foreign country and a regular Customs entry therefore shall be made. Section 123.14(d), Customs Regulations provides that any vehicle used in violation of § 123.14, is subject to forfeiture under § 592, Tariff Act of 1930, as amended (19 U.S.C.

With respect to your inquiry, upon reviewing the scenario you pose, we note that your company’s vehicle would be engaged, in part, in the carriage of merchandise originating in one country (Mexico) and terminating in another (USA). It would also be transporting merchandise originating in one country (USA) and terminating in another country (Canada). As such, the vehicle would be considered to be engaged in international traffic. (See Customs Bulletin of October 1, 1997, Vol. 31, No. 40, at p. 9). Furthermore, the proposed use of the subject vehicle in the United States does not constitute "local traffic" within the meaning of § 123.14(c) since it would be involved in the transportation of merchandise between two points in the United States when such merchandise has had a prior movement from an origin (i.e., point of loading) outside the United States (i.e., the Mexican-loaded cargo) and , with respect to the U.S.-loaded cargo, will be subsequently moved to a destination (i.e., point of delivery) outside the United States (i.e., Canada). Id. at p. 11.

Accordingly, the use of Sunbelt Transport Inc.’s vehicle as proposed would not be prohibited by Customs administration of 19 CFR

HOLDING:

The use of a Canadian-based truck as described in the above scenario is not violative of 19 CFR § 123.14(c).

Sincerely,

Georgina Grier

Previous Ruling Next Ruling