Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a

HQ H034558 August 14, 2008 BOR-4-07-OT:RR:BSTC:CCI H034558 JLB CATEGORY: Carriers Mr. Christopher Smith NA Customs Compliance Specialist IKEA Wholesale Inc. 100 Ikea Drive Westampton, New Jersey 08060 RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a Dear Mr. Smith: This is in response to your correspondence of July 29, 2008, in which you requested a ruling to classify load bars and dunnage air bags as “instruments of international traffic” pursuant to 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a. Our ruling on your request follows. FACTS IKEA Wholesale Inc. seeks a determination that certain load bars and dunnage air bags used to secure shipments in both ocean containers and truck trailers are “instruments of international traffic.” As part of its standard practice, IKEA Wholesale Inc. uses the load bars and dunnage air bags on most container or trailer shipments from supplies outside the United States. Additionally, they are used on trailer shipments from the distribution centers in the United States to the Canadian stores that they supply. The load bars are telescoping metal bars with foot pads or foot plates that are extended to secure a trailer or container in order to prevent longitudinal displacement during transport. IKEA Wholesale Inc. has approximately 8,500 load bars in use and each of these bars is intended for a multiple number of uses. The dunnage air bags consist of a plastic bladder with a pressure measuring gauge which is covered by an outer shell of multi-layered paper. These bags are placed between items in a trailer or container and inflated to prevent loads from shifting, therefore, reducing the chance of damage during transit. The pressure measuring gauge allows the air bags to inflate and deflate so that they may be reused for multiple shipments. At any given time, IKEA Wholesale Inc. has approximately 10,000 air bags available or in use. ISSUE Whether the load bars and dunnage air bags described above qualify as “instruments of international traffic” within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a? LAW AND ANALYSIS Pursuant to 19 U.S.C. § 1322(a), “vehicles and other instruments of international traffic, of any class specified by the Secretary of [Homeland Security], 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…” Lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics are explicitly classified as “instruments of international traffic.” 19 C.F.R. § 10.41a(a)(1). Additionally, the Commissioner of U.S. Customs and Border Protection (“CBP”) is authorized to designate other items besides those mentioned as “instruments of international traffic.” Once designated as such, the instruments may be released without entry or payment of duty. To qualify as an “instrument of international traffic” within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a, 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 Headquarters Ruling Letter 109665, dated September 12, 1988; Headquarters Ruling Letter 109634, dated August 11, 1988; see also Headquarters Ruling Letter 113687, dated February 27, 1997. The concept of reuse contemplated above is for commercial shipping or transportation purposes, and not incidental or fugitive uses. See Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at 99; see also Holly Stores, Inc. v. United States, 697 F.2d 1387, 1388 (Federal Cir., 1982). Reuse has been held to mean using the containers more than twice. See Headquarters Ruling Letter 112627, dated May 18, 1993; Headquarters Ruling Letter 111073, dated August 16, 1990; Headquarters Ruling Letter 116032, dated October 30, 2003 (holding that Slip-Trays that will be used multiple times meet the “instrument of international traffic” requirements while those that will be used only once and then destroyed do not qualify as “instruments of international traffic”). We note that twist-lock stackers, container adapters, automotive frame spacers and steel container lashing rods that are used to secure shipments and prevent containers or trailers from toppling, lifting, sliding, or tilting are “instruments of international traffic.” See Headquarters Ruling Letter 112627, dated May 18, 1993; T.D. 82-147; T.D. 68-296; T.D. 69-220. Similarly, the load bars and dunnage air bags under consideration are also used to secure shipments in both ocean containers and truck trailers. Furthermore, it is well settled that dunnage air bags qualify as “instruments of international traffic.” See, e.g., C.I.E. 525/63 (inflatable dunnage units qualify as “instruments of international traffic”); Headquarters Ruling Letter 112474, dated February 22, 1993 (inflatable air bags manufactured from heavy-gauge paper which are used as dunnage to fill voids between pallets are “instruments of international traffic”). Upon reviewing the request, the load bars and dunnage air bags appear to be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic with approximately 8,500 load bars and 10,000 air bags in use. Furthermore, CBP has previously ruled that items of similar use and construction as those presently under consideration qualify as “instruments of international traffic” pursuant to 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a. Accordingly, load bars and dunnage air bags qualify as “instruments of international traffic.” The instruments may be released without entry or payment of duty. HOLDING The load bars and dunnage air bags described above qualify as “instruments of international traffic” within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a and may be released without entry or the payment of duty. Sincerely, Glen E. Vereb, Chief Cargo Security, Carriers and Immigration Branch