HQ 116569 - Instruments of international traffic; 19 U.S.C. 1322; 19 CFR 10.41a - United States International Trade Commision Rulings

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HQ 116569

November 15, 2005
BOR-4-07-RR-IT-EC 116569 GOB

CATEGORY: CARRIER

Andrea Abraham, Esq.
Meeks & Sheppard
1735 Post Road
Suite 4
Fairfield, CT 06824

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

Dear Ms. Abraham:

This is in response to your ruling request of October 28, 2005 on behalf of American Industrial Manufacturing Services, Inc. (“AIMS”), a Denso International America company. Our ruling follows.

FACTS:

You request that certain articles described below be designated as instruments of international traffic within the meaning of section 10.41a(a)(1), Customs and Border Protection (“CBP”) Regulations (19 CFR 10.41a(a)(1)). You state that:

AIMS is an importer of automotive parts. As part of its international business, AIMS uses four “orikon tote boxes” (hereafter “totes”) numbered C-1, C-3, C-4 and C-A to commercially ship tube, hose, connectors, bolt kits, and other small automobile parts to the U.S. from Japan. Plastic slip sheets, numbered R-4, and unnumbered cloth bands, or straps, are used in conjunction with the totes. . . .

Totes

The totes are constructed of plastic and, when empty, are capable of being collapsed to facilitate their return transport to Japan. Each tote is marked with its designated number, for example “C-1”, on the width side and the name “NIPPONDENSO” or “DENSO” on the length side. In addition, each tote has an estimated useful life of ten years and is capable of substantial and repetitive use during that time. . . .

Plastic Slip Sheets

The plastic slip sheets have “lips” on three sides that are each 2” in height, and a fourth lip that is 4-3/4” in height. The design of the slip sheets enables the totes to be lifted and pulled using a fork lift. The slip sheets are repetitively used with the totes during both the import and export transit.

On shipments inbound to the U.S., the slip sheets are placed between stacks of either three or four totes depending on the size of the totes. On return to Japan, the slip sheets are placed between each stack of six collapsed totes. . . .

Cloth Straps

The cloth bands (straps) are made of nylon and are braid woven with metal rings for securing the stacked totes. The straps are used to secure and hold down the stacked totes. Like the slip sheets, the straps are repetitively used with the totes for both imports and exports.

You state that AIMS expects about 200 totes, 40 slips, and 80 straps to be in use at one time. The estimated useful life is ten years for the totes and five years for the slips and straps.

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 19 CFR 10.41a. Section 10.41a(a)(1), CBP Regulations (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(a)(1), CBP Regulations (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.

Section 10.41a(a)(3), CBP Regulations (19 CFR 10.41a(a)(3)) provides that “instruments of international traffic” includes the normal accessories and equipment imported with any such instrument.

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.

In HQ 114506, dated October 29, 1998, issued to Denso Sales California, Inc. (also a Denso International America company), CBP designated certain orikon tote boxes, plastic slip sheets, and cloth straps as instruments of international traffic.

After a review of the information submitted, we determine that the subject goods meet the criteria for designation as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a(a)(1). Accordingly, they are so designated.

HOLDING:

The subject orikon tote boxes, plastic slip sheets, and cloth straps 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,

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