Instruments of International Traffic; IIT; plastic boxes; struts; 19 U.S.C. 1322; 19 C.F.R. 10.41a.

HQ 112534 January 25, 1993 BOR-7-07-CO:R:IT:C 112534 DEC CATEGORY: Carriers Mr. Bruce N. Shulman Stein, Shostak, Shostak & O'Hara 1620 L Street, N.W. - Suite 807 Washington, D.C. 20036-5605 RE: Instruments of International Traffic; IIT; plastic boxes; struts; 19 U.S.C. 1322; 19 C.F.R. 10.41a. Dear Mr. Shulman: This is in response to your November 20, 1992, letter in which you requested a ruling to classify folding reusable plastic boxes designed to transport automotive strut components which Tokico (U.S.A.) Inc. uses as instruments of international traffic pursuant to 19 U.S.C. 1322(a) and 19 C.F.R. 10.41a. FACTS: Tokico (U.S.A.) Inc. uses folding reusable plastic boxes to package automotive strut components it imports from Japan through Los Angeles and Seattle for ultimate delivery to its Berea, Kentucky plant. Upon arrival at its manufacturing facility, the merchandise will be removed and the boxes will be set aside to be returned to Japan routinely for reuse in importing additional components. The boxes measure approximately 21 inches long, by 14 inches wide, by 10 1/2 inches high when opened and are constructed of molded polypropylene plastic. ISSUE: Whether the described reusable plastic boxes may be considered instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and section 10.41a of the U.S. Customs Regulations (19 C.F.R. 10.41a)? -2- LAW AND ANALYSIS: Title 19, United States Code, section 1322(a) provides that: Vehicles and other instruments of international traffic, of any class specified by the Secretary of the Treasury, 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 of the Secretary of the Treasury. 19 U.S.C. 1322(a) (1992). Title 19, Code of Federal Regulations, section 10.41a specifically designates certain items as instruments of international traffic. Additionally, this section authorizes the Commissioner of Customs to designate other items as instruments of international traffic in decisions to be published in the weekly Customs Bulletin. Once designated as instruments of international traffic, these items may be released without entry or the payment of duty, subject to the provisions of 10.41a. 19 C.F.R. 10.41a(1) (1992). To qualify as an "instrument of international traffic" within the meaning of 19 U.S.C. 1322(a) and the regulation promulgated pursuant thereto (19 C.F.R. 10.41a et seq.), 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 generally Headquarters Decisions 103232, 104766, 108084, 108658, 109665, and 109702). Treasury Decisions 68-56, 74-281, 75-265, and Headquarters Decision 109702 all stand for the proposition that plastic trays of similar dimensions which are used to transport goods are substantial as well as suitable for and capable of repeated use. In addition, the requirement that the instrument of international traffic be used in significant numbers is also met as so long as the plastic trays are, in fact, reused for subsequent shipments. The designation of a container as an instrument of international traffic becomes operative only when it is used as such upon its arrival into this country in foreign trade. If the holder or container is brought into the country by a party other than the one who is using it as an instrument of international trade, it is subject to entry as imported merchandise. -3- Upon reviewing the request and accompanying documentation, we are of the opinion that the requirements of establishing instrument of international traffic status have been met. More specifically, the containers in question appear to be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. In addition, U.S. Customs has previously ruled that shipping containers of similar use and construction as those presently under consideration qualify as instruments of international traffic pursuant to 19 U.S.C. 1322(a) and 19 C.F.R. 10.41a (See Headquarters Decision 109702, dated September 30, 1988). HOLDING: The folding reusable plastic boxes constructed of molded polypropylene plastic used to transport automotive strut components under consideration are hereby designated as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 C.F.R. 10.41a and may be released without entry or the payment of duty. Sincerely, Acting Chief Carrier Rulings Branch