Instruments of International Traffic; Accessories; Aircraft Pallet Nets; Tiedown Straps; Subheading 9803.00.50, HTSUSA; 19 U.S.C. § 1322;19 CFR § 10.41a

HQ 116513 August 8, 2005 BOR-4-07-RR:IT:EC 116513 IDL CATEGORY: Carriers Lara A. Austrins Rodriguez O’Donnell Ross Fuerst Gonzalez Williams & England, P.C. 8430 West Bryn Mawr Avenue Suite 525 Chicago, Illinois 60631 Re: Instruments of International Traffic; Accessories; Aircraft Pallet Nets; Tiedown Straps; Subheading 9803.00.50, HTSUSA; 19 U.S.C. § 1322; 19 CFR § 10.41a Dear Ms. Austrins: This is in response to your letter on behalf of AmSafe Bridport, of Los Angeles, California, dated July 21, 2005, concerning “Pallet Nets and Tiedown Straps” as accessories of instruments of international traffic. Our ruling on this matter is set forth below. FACTS: AmSafe Bridport imports pallet nets and tiedown straps manufactured in Sri Lanka, the United Kingdom and China. The pallet nets, some with and some without lashing lines, include hooks and fittings, and are specifically designed, manufactured and certified for use with pallets as primary cargo restraints during transportation on aircraft. The pallet nets, which are woven from polyester rope and come in various sizes, meet or exceed a life cycle of three years. The tiedown straps are used with pallets and containers in the air transportation industry. The tiedown straps, which consist of a woven man-made fiber and include hooks and buckles, are specifically designed, manufactured and certified for use with pallets and containers as secondary cargo restraints during transportation on aircraft. The tiedown straps come in various sizes and can be reused hundreds of times, having a life cycle of approximately three years. You state that the pallet nets meet the requirements of the Federal Aviation Administration, Civil Aviation Authority (CAA) and International Air Transport Association (IATA) for cargo restraints, and that the tiedown straps meet the requirements of the CAA and IATA for restraints. You have further stated that both the pallet nets and the tiedown straps are sold to and used by more than 100 leading airlines and air cargo companies throughout the world to restrain cargo during transportation on pallets. In addition, you have provided samples, technical data and manuals, along with specifications and other information, to demonstrate that the subject merchandise is specifically designed as accessories of the pallets. ISSUE: Whether the pallet nets and tiedown straps, as described above, may be entered duty-free as accessories of instruments of international traffic within the meaning of 19 CFR § 10.41a(a)(2)? LAW AND ANALYSIS: Title 19, United States Code, section 1322(a) (19 U.S.C. § 1322(a)), provides that "[v]ehicles and other instruments of international traffic, of any class specified by the Secretary… 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…." The U.S. Customs and Border Protection (CBP) Regulations issued under the authority of section 1322(a) are contained in section 10.41a (19 CFR § 10.41a). Section 10.41a(a)(1) specifically designates lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics as instruments of international traffic. Once designated as instruments of international traffic, 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 regulations 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 Decisions). The concept of reuse contemplated above is for commercial shipping or transportation purposes, and not incidental or fugitive uses. Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at 99. See Holly Stores, Inc. v. United States, 697 F.2d 1387 (Federal Circuit, 1982). CBP rulings on this matter have held that single use is not sufficient; reuse means more than twice (Headquarter rulings 105567 and 108658). Paragraph (a)(2) of section 10.41a (19 CFR 10.41a(a)(2)) provides the following: Repair components, accessories, and equipment for any container of foreign production which is an instrument of international traffic may be entered or withdrawn from warehouse for consumption without the deposit of duty if the person making entry or withdrawal from warehouse files a declaration ...that the accessory or equipment is for a container of foreign production which is an instrument of international traffic. The port director must be satisfied that the importer of the repair component, accessory or equipment had the declared intention at the time of importation. We find that the information that you have provided demonstrates that the subject merchandise is designed and will be used for the pallets and serve as accessories to them. Therefore, based on such information, we find that the pallet nets and tiedown straps are accessories of instruments of international traffic of foreign production, and are eligible for duty-free treatment pursuant to the provisions of 19 U.S.C. § 1322, subheading 9803.00.50, HTSUSA, and 19 CFR § 10.41a. We note that entry of this merchandise is required under 19 CFR § 10.41a(a)(2). (See also ruling letter 114446, dated October 20, 1998). The samples you provided are returned herewith. HOLDING: The aircraft pallet nets and tiedown straps described above may be entered duty-free as accessories of instruments of international traffic within the meaning of 19 CFR § 10.41a(a)(2). Sincerely, Glen E. Vereb Chief Entry Procedures and Carriers Branch Enclosures