Instruments of international traffic; 19 U.S.C. 1322; 19 CFR10.41a; Plastic spacers

HQ 113999 July 2, 1997 BOR-4-07-RR-IT-EC 113999 GOB CATEGORY: Carriers Chester R. Krayton Customs Trade Consultants P.O. Box 626 Manalapan, New Jersey 07726 RE: Instruments of international traffic; 19 U.S.C. 1322; 19 CFR 10.41a; Plastic spacers Dear Mr. Krayton: This is in response to your letter of June 18, 1997 on behalf of Dana Corporation. FACTS: You request that certain plastic spacers be designated as instruments of international traffic within the meaning of 19 CFR 10.41a. Your letter states as follows, in pertinent part: Our client, Dana Corporation, has been notified that its Canadian supplier will replace the wooden spacers, which are described in ruling No. HQ113718, with plastic spacers. The plastic spacer will be used to separate imported axle housings from each other and to hold them in place during shipment. The dimensions of a plastic spacer are 3-7/8"x5"x52". The cost for each spacer is $10.00. Each skid holding imported axle housings will have between 12 to 16 spacers. The approximate life span of a plastic spacer is five to seven 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: 19 U.S.C. 1322(a) states in part: 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. 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. Instruments so designated are also stated to be duty-free in subheading 9803.00.50, Harmonized Tariff Schedule of the United States. 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 Headquarters decisions 108084, 108658, 109665, and 109702. In Ruling 113718 dated October 18, 1996 to Dana Corporation we determined that certain wooden spacers, spindle nuts, and plastic caps met the requirements to be designated as instruments of international traffic. Dana Corporation now advises that the wooden spacers will be replaced by the plastic spacers described above. After a review of the information submitted, we determine that the plastic spacers, as described above, meet the requirements to be designated as instruments of international traffic. HOLDING: The plastic spacers are designated as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a. Sincerely, Jerry Laderberg Acting Chief, Entry and Carrier Rulings Branch