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HQ 116692





July 20, 2006

BOR-4-07-RR-IT-EC 116692 GOB

CATEGORY: CARRIER

Paul Brinkman, Esq.
Alston & Bird LLP
950 F Street, N.W.
Washington, D.C. 20004-1404

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

Dear Mr. Brinkman:

This is in response to your ruling request of July 7, 2006 on behalf of Electrolux Home Products, Inc. Our ruling follows.

FACTS:

You request that certain plastic totes 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 the totes are used for the transportation of refrigerator components from several suppliers in the United States to an affiliated refrigerator assembly plant in Mexico. You further state that:

The totes in issue were produced in the United States from a combination of high density polypropylene and polyethylene. They measure 48” long by 45” wide, with a height of either 24” or 34”. When folded, all are 12” tall. They are very durable and have a useful life of over five years. Approximately 2,000 such totes are in continuous use transporting refrigerator components from various U.S. suppliers to EHP’s affiliate in Mexico. After delivering components to Mexico, the totes are returned to the United States, either empty and collapsed or loaded with cardboard carton separators or other reusable packing materials or defective merchandise returns.

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 § 10.41 et seq. 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 and Border Protection 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., HQ 108084, HQ 108658, HQ 109665, and HQ 109702.

We have previously determined that similar plastic totes qualify as instruments of international traffic. See e.g., HQ 114482, dated December 18, 1998, HQ 116058, dated October 27, 2003, and HQ 116104, dated February 4, 2004.

After a review of the information submitted, we determine that the subject plastic totes 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 plastic totes 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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