HQ 116376 - Instruments of international traffic; 19 U.S.C. 1322; 19 CFR 10.41a - United States International Trade Commision Rulings

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HQ 116376

January 11, 2005
BOR-4-07-RR-IT-EC 116376 GOB

CATEGORY: CARRIER

Charles Earle
Equipment Manager
Star Shipping Inc.
11008 Dauphin Street
Mobile, AL 36604

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

Dear Mr. Earle:

This is in response to your letter of December 14, 2004 to Customs and Border Protection (“CBP”) in Mobile requesting that certain items be designated as instruments of international traffic. In response to our request for additional information you submitted correspondence of December 20, 2004 to this office.

FACTS:

You request that the following goods be designated as instruments of international traffic pursuant to section 10.41a, CBP Regulations (19 CFR 10.41a):

Equipment bins. These items are 20 feet long, eight feet wide, and either four or eight feet high. There are of steel construction; some of the bins have a wooden floor. The bins are used to store and transport the items described below. You state that these bins have an expected useful life of about ten years. There are approximately 300 equipment bins used on your vessels.

Decklashings. These are steel chains of between 25 feet and 250 feet in length which are supplied to vessels in sets, each of which contains 150 chains, 150 turnbuckles, 75 pearlinks, and 150 shackles. The turnbuckles and pearlinks are steel and are used in securing the chains. You state that these items have an expected useful like of over ten years.

Rubber Airbags. These are constructed of vulcanized rubber, synthetic weaving, and an inflation/deflation valve. The dimensions are either four feet by eight feet or two feet by eight feet. The airbags are inflated in empty spaces in order to impede the movement of cargo. Each vessel carries between 400 and 600 of these airbags. You state that these airbags have an expected useful life of over ten years.

Lumber Web Slings. These are polyester slings ranging in length from 22 feet to 27 feet which are used to lift lumber. Each of your 70 vessels can carry up to 15,000 of these slings. There are a total of 175,000 of these slings used by your vessels. You state that these items have an expected useful life of over five years.

Plywood Web Slings. These are polyester slings ranging in length from 21 feet to 27 feet which are used to lift plywood. Each of your 70 vessels can carry up to 8,000 of these slings. There are a total of 110,000 of these slings used by your vessels. You state that these items have an expected useful life of over five years.

Core Slings. These are polyester slings with a six inch steel baseplate sewn into the webbing. These slings are 15 feet to 16 feet in length and are designed for lifting roll paper and linerboard through the core. Each of your 70 vessels can carry up to 1,800 of these slings. There are a total of 16,000 of these slings used by your vessels. You state that these items have an expected useful life of over five years.

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:

Title 19, United States Code, section 1322(a) (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 CBP Regulations issued under the authority of 19 U.S.C. 1322 are contained in section 10.41a, CBP Regulations (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.

Section 10.41a, CBP Regulations (19 CFR 10.41a(a)(1)) also authorizes the Commissioner of CBP 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.

Section 10.41a, CBP Regulations (19 CFR 10.41a(a)(3)) provides that instruments of international traffic include the normal accessories and equipment imported with any such instrument which is a container as defined in Article 1 of the Customs Convention on Containers.

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. The article must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. See e.g. HQ 108084, 108658, 109665, and 109702.

There are previous CBP rulings which are instructive with respect to some of the items at issue here.

In HQ 112627 dated May 18, 1993, we held that certain container lashing rods were instruments of international traffic. These goods appear to be similar to the decklashings at issue here.

In CIE 525/63, discussed in HQ 112627, we held that inflatable dunnage units were instruments of international traffic. These goods are similar to the rubber airbags at issue here.

In HQ 113916 dated July 2, 1997, we stated as follows with respect to certain polypropylene straps:

To qualify as IIT’s, the straps must be used as a container or holder. We have found for similar merchandise, sling belts and steel slings, that such articles must be used as holders of merchandise in their containers during shipment, and not merely to lade and unlade the merchandise at their points of origin and destination, to qualify as IIT’s. See, e.g., C.S.D. 79-395; T.D. 80-145; HQ 109039, dated August 20, 1987, and HQ 109193, dated January 15, 1988. You state that the straps will be used to facilitate the movement and unloading of commodities from the bulk bags. Consequently, based on the above precedent, the straps would not be considered containers or holders and would not qualify as IIT’s.

We find that HQ 113916 is instructive and “on point” with respect to the lumber web slings, the plywood web slings, and the core slings.

After a review of the information submitted and the applicable precedents, we determine that the equipment bins, decklashings, and rubber airbags meet the requirements for designation as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a(a). Accordingly, we so designate them. We find that the lumber web slings, plywood web slings, and core slings do not meet the requirements for designation as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a(a) because they are not holders or containers. Accordingly, they may not be designated as instruments of international traffic.

HOLDING:

The equipment bins, decklashings, and rubber airbags are hereby designated as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a(a).

Sincerely,

Glen E. Vereb
Chief,

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