Instruments of International Traffic; 19 U.S.C.  1322(a);19 CFR  10.41a; Plastic cassettes

HQ 114234 April 24, 1998 BOR-4-07-RR:IT:EC 114234 CC CATEGORY: Carriers Emylene J. deJesus Vice President/Manager James J. Boyle & Co. 139 Mitchell Ave., Suite 208 South San Francisco, CA 94080 RE: Instruments of International Traffic; 19 U.S.C.  1322(a); 19 CFR  10.41a; Plastic cassettes Dear Ms. deJesus: This is in response to your letter, which we received on January 29, 1998, on behalf of Marubeni America Corp., requesting that we designate certain plastic cassettes as instruments of international traffic (IIT's). FACTS: You state that the cassettes are used to transport nickel or aluminum plated substrates between Japan and the United States. The cassettes are made of polycarbonate and measure 8 inches in length, 4 inches in width, and 4« inches in height. Approximately 6000 cassettes enter the United States each week, and they are used 10 to 15 times before being discarded. ISSUE: Whether the subject plastic cassettes 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: Section 322(a), Tariff Act of 1930, as amended (19 U.S.C.  1322(a)) provides that "[v]ehicles 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 instruction of the Secretary of the Treasury." The Customs Regulations issued under the authority of section 322(a) are contained in section 10.41a (19 CFR  10.41a). Paragraph (a)(1) of section 10.41a designates lift vans, cargo vans, shipping tanks and certain other named articles as IIT's and states that other articles may be designated as IIT's by the Commissioner of Customs in a decision to be published in the weekly Customs Bulletin. Once designated as IIT's, these items may be released without entry or the payment of duty, subject to the provisions of section 10.41a. 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 CFR  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, subheading 9803.00.50, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), and former Headnote 6(b)(ii), Tariff Schedules of the United States (TSUS), as well as Headquarters Ruling Letters (HQs) 104766, dated August 22, 1988; 109665, dated September 12, 1988; and 109702, dated September 30, 1988. Upon review of the request and accompanying documentation, we are of the opinion that the containers in question are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. In addition, we have ruled that similar containers qualify as IIT's. In HQ 112534, dated January 25, 1993, we found that resusable plastic boxes qualify as instruments of international traffic. See, also, T.D. 75-265. Consequently, we find that the subject plastic cassettes qualify as IIT's pursuant to 19 U.S.C.  1322(a). HOLDING: The subject plastic cassettes qualify as instruments of international traffic and may be released pursuant to 19 CFR  10.41a. Sincerely, Jerry Laderberg Chief Entry Procedures and Carriers Branch