Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 CFR § 10.41a; Corrugated polypropelene shipping boxes

HQ 114680 August 20, 1999 BOR-4-07-RR:IT:EC 114680 CC CATEGORY: Carriers Michael E. Lewis Manager, Distribution and Customs - N.A. REHAU Incorporated P.O. Box 1706 Leesburg, VA 20177 RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 CFR § 10.41a; Corrugated polypropelene shipping boxes Dear Mr. Lewis: This is in response to a letter of April 27, 1999, requesting that we designate certain “corrugated polypropelene shipping boxes” as instruments of international traffic (IIT’s). FACTS: You state that the subject containers are corrugated polypropelene shipping boxes designed for transporting parts of automobiles, including bumpers, bumper ear extensions, and body side moldings. The boxes, valued at about $81 each, measure approximately 72.4 inches in length, 18.9 inches in width, and 30.3 inches in height or 72.4 inches in length, 19.5 inches in width, and 30.3 inches in height. REHAU will use approximately 1000 boxes, with each box being used between 25 and 40 times. You state that all of the boxes will be used exclusively for the transport of the automobile parts between REHAU’s U.S. manufacturing facility in Cullman, Alabama and a distribution center in Graz, Austria. ISSUE: Whether the subject boxes 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. Consequently, we find that the subject boxes qualify as IIT’s pursuant to 19 U.S.C. § 1322(a). HOLDING: The subject boxes 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