Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a(a)(1); engine transportation stands, engine pallets.

HQ H188300 January 6, 2012 BOR-4-07-OT:RR:BSTC:CCI H188300 DAC CATEGORY: Carriers Ms. Carmen R. Morrow Rolls-Royce North America 2001 S. Tibbs Avenue: Speed Code S36 Indianapolis, IN 46241 RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a(a)(1); engine transportation stands, engine pallets. Dear Ms. Morrow: This letter is in response to your correspondence of October 3, 2011, in which you request a ruling on behalf of Rolls-Royce North America (RRNA). In your request, you inquire whether certain reusable engine transportation stands, as described below, qualify for designation as instruments of international traffic (IIT) under 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. Our ruling is set forth below. FACTS: The following facts are from your letter dated October 3, 2011, which includes pictures of the subject articles. The articles in question are described as “engine transportation stands” or “engine pallets” and are used for transportation of AE 3007 jet engines. The engine transportation stands are constructed of welded steel and are equipped with castors and forklift tubes. The engine transportation stands are designed to be handled with either a fork lift or an over head crane. The engine pallets dimensions are approximately 123.5 inches in length by 60.25 inches in width by 62 inches in height. The empty weight of the engine transportation stands is approximately 1,345 pounds. The engine transportation stands are designated as part number 23054395. Images of an engine transportation stand are provided below.

The engine transportation stands are constructed of welded steel and are designed to be reused numerous times. There are approximately thirty engine transportation stands being used by Rolls-Royce at present, and an additional fifteen are expected to be delivered before the end of 2011. The engine transportation stands are used by Rolls-Royce North America to transport jet engines for exportation. After delivery of the jet engines, the empty engine transportation stands are then returned for reuse. Rolls Royce currently exports to South America, Asia, Africa, and Europe, to several countries that include Brazil, China, Canada, Germany, Great Britain, Kenya, Luxembourg and Sweden ISSUE: Whether the engine transportation stands as described above may be designated as instruments of international traffic (IIT) within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(1). 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 or instructions…” The Customs and Border Protection (CBP) Regulations issued under the authority of § 1322(a) are contained in 19 CFR § 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 CBP Ruling HQ 116631 (March 27, 2006). 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; Holly Stores, Inc. v. United States, 697 F.2d 1387 (Fed. Cir. 1982). CBP has consistently held that “repeated use” means more than twice. See CBP Ruling HQ 116391 (February 16, 2005). You assert that the subject articles are instruments of international traffic. Pursuant to 19 U.S.C. § 1322(a), instruments of international traffic shall be excepted from the application of the Customs laws to the extent that such terms and conditions are prescribed in regulations or instructions. The CBP regulations, promulgated under the authority of 19 U.S.C. § 1322(a), provide in pertinent part: Lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics, arriving (whether loaded or empty) in use or to be used in the shipment of merchandise in international traffic are hereby designated as “instruments of international traffic” . . . The Commissioner of Customs[now CBP] is authorized to designate as instruments of international traffic, . . ., such additional articles or classes of articles as he shall find should be so designated. Such instruments may be released without entry or the payment of duty, subject to the provisions of this section. 19 C.F.R. § 10.41a(a)(1). (emphasis added.) In prior determinations, CBP has ruled that certain articles of similar nature, use and construction as those presently under consideration qualify as instruments of international traffic pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. See H030677 (July 17, 2008); HQ 116573, (Dec. 19, 2005). See also HQ H016491 (Oct. 1, 2007); HQ 114150 (Dec. 12, 1997); Treas. Dec. 71-159, Cust. B. & Dec. 296 (June 18, 1971); 99 Treas. Dec. 533, No. 56247 (Aug. 26, 1964). Upon reviewing the present matter, we are of the opinion, based on the information provided by Rolls-Royce North America that the requisite criteria for designation of the subject engine transportation stands as instruments of international traffic have been met. The engine transportation stands are used to transport jet engines for the aviation industry. Rolls-Royce North America states that there are approximately thirty such articles already in circulation. The subject stands are constructed of welded steel and are scheduled to be reused numerous times. We find the subject articles are substantial. Accordingly, the subject engine transportation stands meet the requisite criteria to qualify as IIT pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. HOLDING: The subject engine transportation stands, (specifically part number 23054395), are hereby designated as IIT within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(1), and may be released without entry or the payment of duty pursuant to the provisions of 19 CFR § 10.41a(a)(1). Sincerely, George Frederick McCray Supervisory Attorney-Advisor/Chief Cargo Security, Carriers and Immigration Branch Office of International Trade, Regulations & Rulings U.S. Customs and Border Protection