Instruments of International Traffic; Compressed-Gas Containers; Subheading 9803.00.50, HTSUSA; 19 U.S.C. § 1322; 19 CFR § 10.41a

HQ H005408 January 25, 2007 BOR-4-07-RR:BSTC:CCI H005408 IDL CATEGORY: Carriers Albert Stein Vice President Advanced Logistic Solutions 135 Catron Drive Reno, Nevada 89512 Re: Instruments of International Traffic; Compressed-Gas Containers; Subheading 9803.00.50, HTSUSA; 19 U.S.C. § 1322; 19 CFR § 10.41a Dear Mr. Stein: This is in response to your correspondence, dated January 3, 2007, to the Port Director, San Francisco, California, U.S. Customs and Border Protection (CBP). The port has forwarded to this office for our review your request for a binding ruling on designation of “compressed-gas containers,” as instruments of international traffic. Our ruling on this matter is set forth below. FACTS: Certified Specialty Gases, Inc. transports compressed gas in containers from the United States to foreign distributors or end users of the gas product. The foreign distributors or end users consume the gas, before returning the containers empty to Certified Specialty Gases, and the distribution cycle repeats. The U.S. or foreign-manufactured containers are made of steel and/or aluminum, number in the thousands, measure approximately 9” (diameter) x 60” (height) or 4” x 18”, and have a serviceable life of twenty years or more. Further, you stated that the containers comply with U.S. Department of Transportation requirements, and you provided images of the containers with your submission. ISSUE: Whether the compressed-gas containers 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, U.S. Customs and Border Protection (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. Once designated as IITs, these items may be released without entry or the payment of duty, subject to the provisions of section 10.41a. 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). 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). In HQ 111933 (February 10, 1992) we designated as IITs silane modules for the transportation of atmospheric and other gases. See also, Treasury Decision (T.D.) 66-184, wherein we designated as IITs metal cylinders designed for transportation of acetylene and rare gas; T.D. 71-35(2), wherein we designated as IITs steel cylinders used for shipment of fluorocarbon gas; T.D. 74-299, wherein we designated as IITs steel cylinders used for the transportation of propane and butane gas. In the instant case, we find that, based on the information provided, the compressed-gas containers are used to contain compressed gas during transportation from the United States; they are substantial, suitable for and capable of repeated use; and they are used in significant numbers in international traffic. Accordingly, the containers meet the requisite criteria to qualify as IITs pursuant to section 1322(a). HOLDING: The compressed-gas containers 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