Instruments of International Traffic; IIT; Polystyrene; Dashboards; Cars; Trucks; 19 U.S.C. 1322; 19 C.F.R. 10.41a.

HQ 112558 January 13, 1993 BOR-7-07-CO:R:IT:C 112558 DEC CATEGORY: Carriers Mr. Raul H. Castillo, CHB U.S. Customs Broker Brigeport Tower Building 624 State Highway 336 P.O. Box 277 Hidalgo, Texas 78557 RE: Instruments of International Traffic; IIT; Polystyrene; Dashboards; Cars; Trucks; 19 U.S.C. 1322; 19 C.F.R. 10.41a. Dear Mr. Castillo: This is in reference to your November 12, 1992 letter in which you requested a ruling to classify expandable polystyrene containers that are designed for the transportation of dashboards for cars and trucks as instruments of international traffic pursuant to 19 C.F.R. 10.41a. FACTS: Componentes Mecanicos de Matamoros ("Matamoros") uses expandable polystyrene containers for the transportation of car and truck dashboards which General Motors utilizes in its American and Canadian manufacturing plants. The referenced containers are to be returned to Matamoros and used again for the same purpose. ISSUE: Whether the described expandable polystyrene containers may be considered instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and section 10.41a of the U.S. Customs Regulations (19 C.F.R. 10.41a)? -2- LAW AND ANALYSIS: Title 19, United States Code, section 1322(a) provides that: [V]ehicles and other instruments of international traffic, of any class specified by the Secretary of the Treasury, 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 of the Treasury. 19 U.S.C. 1322(a) (1992). Title 19, Code of Federal Regulations, section 10.41a authorizes the Commissioner of Customs to designate other items as instruments of international traffic in decisions to be published in the weekly Customs Bulletin. Once designated as instruments of international traffic, these items may be released without entry or the payment of duty, subject to the provisions of 10.41a. 19 C.F.R. 10.41a(1) (1992). To qualify as an "instrument of international traffic" within the meaning of 19 U.S.C. 1322(a) and the regulation promulgated pursuant thereto (19 C.F.R. 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 generally Headquarters Decisions 103232, 104766, 108084, 108658, 109665, and 109702). Treasury Decision 77-214, as amended by Treasury Decision 77-246, held that foamed polystyrene trays used to transport worms are substantial and are suitable for and capable of repeated use in international traffic. Furthermore, Headquarters Decision 103232, dated June 15, 1978, determined that polystyrene frames designed specifically for the transport of clock faces be designated as instruments of international traffic. The decision was in conformity with Treasury Decision 77-283 which held that polyethlene dividers used to transport vehicle brake drums and brake disks are instruments of international traffic. Upon reviewing the request and accompanying documentation, we are of the opinion that the requirements of establishing instrument of international traffic status have been met. More specifically, the containers in question appear to be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. In addition, -3- U.S. Customs has previously ruled that shipping containers 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 (See Headquarters Decision 103232, dated June 15, 1978). HOLDING: The expandable polystyrene containers used to transport car and truck dashboards under consideration are hereby designated 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, Acting Chief Carrier Rulings Branch