Instruments of International Traffic; Accessories; Acceleration-Measuring Devices; Subheading 9803.00.50, HTSUSA; 19 U.S.C. § 1322; 19 CFR§ 10.41a

HQ H004789 January 12, 2007 BOR-4-07-RR:BSTC:CCI H004789 IDL CATEGORY: Carriers Paul Vroman DHL Global Forwarding 2660 20th Street Port Huron, Michigan 48060 Re: Instruments of International Traffic; Accessories; Acceleration-Measuring Devices; Subheading 9803.00.50, HTSUSA; 19 U.S.C. § 1322; 19 CFR § 10.41a Dear Mr. Vroman: This is in response to your submission on behalf of your client, Abitibi Consolidated Co., of Canada, dated November 6, 2006, to the Director, National Commodity Specialist Division (NCSD), U.S. Customs and Border Protection (CBP). The NCSD has forwarded to this office for our review your request for a binding ruling on designation of “acceleration-measuring devices,” used during transportation of paper rolls, as instruments of international traffic. Our ruling on this matter is set forth below. FACTS: Abitibi ships rolls of paper from Canada to the United States. In order to monitor damage to the rolls during transportation, Abitibi inserts hidden “acceleration-measuring devices” inside the roll cores. Accelerations in three perpendicular directions are stored in the memory of the devices, together with date, time, and temperature information. Upon reaching the consignee, the devices are removed and exported back to Abitibi, which then reviews the collected data. The devices are repeatedly used during transportation of such rolls to the United States. The devices, made in Finland, are composed of two components. A data-logging unit contains a microprocessor controller and three acceleration sensors; and a carrier unit provides the external power, via housed battery, and acts as a housing for the data-logging unit. You stated that fifteen devices are in use, with a life expectancy of approximately ten years for each device. ISSUE: Whether the “acceleration-measuring devices” described above may be designated as instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a, CBP Regulations (19 CFR 10.41a), and therefore, are classifiable under subheading 9803.00.50, HTSUSA? LAW AND ANALYSIS: Title 19, United States Code, section 1322(a) (19 U.S.C. 1322(a)), provides in pertinent part that “[v]ehicles and other instruments of international traffic…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….” The CBP regulations issued under the authority of section 1322(a) are contained in section 10.41 et seq. (19 CFR 10.41 et seq.). 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 (IITs). Section 10.41a(a)(1) also authorizes the Commissioner of CBP to designate other items as IITs. To this latter end, § 10.41a(a)(3) provides that “instruments of international traffic” includes the normal accessories and equipment imported with any such instrument which is a “container” as defined in Article 1 of the Customs Convention on Containers. Once designated as IITs, these items may be released without entry or the payment of duty, subject to the provisions of § 10.41a. In this regard, for example, § 10.41a(a)(2) makes clear that accessories or equipment that are imported separately and intended for installation in “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 the 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…accessory, or equipment had the declared intention at the time of importation.” See also, subheading 9803.00.50, Harmonized Tariff Schedule of the United States. To qualify as an IIT within the meaning of 19 U.S.C. 1322(a) and the regulations promulgated pursuant thereto (19 CFR 10.41 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 Schedule of the United States (TSUS), as well as Headquarters Decisions 104766; 108084; 108658; 109665; and 109702). In previous rulings, we designated as IITs shock/climate measuring devices installed as accessories inside containers. HQ 116575 (January 26, 2006); see also, HQ 116684 (August 17, 2006) and HQ 116288 (August 12, 2004), wherein we designated as IITs security monitoring and tracking devices. In the instant case, we find that, based on the information provided, the acceleration-measuring devices are accessories for use with IIT containers that hold paper rolls; the devices are substantial, suitable for and capable of repeated use; and they are used in significant numbers in international traffic. Accordingly, the devices are designated as instruments of international traffic pursuant to 19 CFR § 10.41a(a)(3). We note that in those instances where the devices are imported separately as accessories intended for installation in IIT containers, entry of the devices, together with a declaration of intent to this effect, would be required in accordance with 19 CFR § 10.41a(a)(2). HOLDING: The acceleration-measuring devices are designated as instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a, and therefore, are classifiable under subheading 9803.00.50, HTSUSA. Sincerely, Glen E. Vereb Chief Cargo Security, Carriers and Immigration Branch