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HQ 116149

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April 8, 2004

BOR-4-07-RR-IT-EC 116149 GOB

CATEGORY: CARRIER

Kent Sunakoda
Import Manager
James J. Boyle & Co.
2525 Corporate Place, #100
Monterey Park, CA 91754

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

Dear Mr. Sunakoda:

This is in response to your letter of January 21, 2004 on behalf of Aisin Holdings of America, Inc.

FACTS:

You request that certain plastic pallets, boxes, and pads of Japanese origin be designated as instruments of international traffic within the meaning of 19 CFR 10.41a(a)(1). You state that:

The reusable pallets, boxes and pads are made of polypropylene and will be used to hold automobile and forklift parts during transport within ocean containers for shipments from Japan to the United States. They will be shipped empty to Japan once the goods have been unloaded at various manufacturing plants in the United States. The anticipated life cycle (durability) of the pallets, boxes and pads is 8 years with an annual usage of 3-4 times per year.

You state that the dimensions of the pallets are: 44.9” x 44.9” x 5.0”. Approximately 50,000 pallets will be placed in circulation each year.

You state that there will be three models of boxes (types 02, 04, and 06). The dimensions of the type 02 boxes are 11” x 11” x 3.1”; approximately 597,000 units will be placed in circulation annually. The dimensions of the type 04 boxes are 11” by 11” by 6.3”; approximately 537,000 units will be placed in circulation annually. The dimensions of the type 06 boxes are 11” x 22” x 6.3”; approximately 534,000 units will be placed in circulation annually.

You state that the dimensions of the pads are 44.9” x 44.9” x 0.35”; approximately 50,000 will be placed in circulation annually. You state that the pads are capable of holding up to 900 kilograms of weight; they were designed for exclusive use with the reusable pallets.

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, that “[v]ehicles and other instruments of international traffic, , 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 ”

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.

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 e.g. Headquarters decisions 108084, 108658, 109665, and 109702.

After a review of the information submitted, we determine that we are able to designate the subject pallets, boxes, and pads as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a(a)(1).

HOLDING:

The subject pallets, boxes, and pads are hereby designated as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a(a)(1).

Sincerely,

Glen E. Vereb
Chief,
Entry Procedures and Carriers Branch

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