IIT; wooden bins; 19 U.S.C. § 1322(a); 19 CFR § 10.41a

HQ 114503 January 20, 1999 BOR-4-07-RR:IT:EC 114503 CC CATEGORY: Carriers Edmundo Rodriguez, CHB Vice-President & General Manager Néstor Reyes, Inc. P.O. Box 9023474 San Juan, Puerto Rico 00902-3474 RE: IIT; wooden bins; 19 U.S.C. § 1322(a); 19 CFR § 10.41a Dear Mr. Rodriguez: This is in response to your letter of August 10, 1998, on behalf of Concentrate Manufacturing Operations, Pepsico Puerto Rico, Inc. (Pepsico), requesting that we designate certain wooden bins as instruments of international traffic (IIT’s). FACTS: You state that the subject bins, which are collapsible, are constructed of wood and have a metal structure, e.g., for the corner plates. When not collapsed for transport, each bin measures approximately 38.5" x 44" x 52". The bins, which contain plastic liners, are used for the transportation of frozen concentrate orange juice. Over 5400 wooden bins will be used in a year, and each bin can be used 10 to 15 times. ISSUE: Whether the subject wooden bins may be designated as instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. LAW AND ANALYSIS: Section 322(a), Tariff Act of 1930, as amended (19 U.S.C. § 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.” The Customs Regulations issued under the authority of section 322(a) are contained in section 10.41a (19 CFR § 10.41a). Paragraph (a)(1) of section 10.41a designates lift vans, cargo vans, shipping tanks and certain other named articles as IIT’s and states that other articles may be designated as IIT’s by the Commissioner of Customs in a decision to be published in the weekly Customs Bulletin. Once designated as IIT’s, these items may be released without entry or the payment of duty, subject to the provisions of section 10.41a. 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 CFR § 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, subheading 9803.00.50, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), and former Headnote 6(b)(ii), Tariff Schedules of the United States (TSUS), as well as Headquarters Ruling Letters (HQs) 104766, dated August 22, 1988; 109665, dated September 12, 1988; and 109702, dated September 30, 1988. Upon review of the request and accompanying documentation, we are of the opinion that the wooden bins in question are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. In addition, we have ruled that similar containers qualify as IIT’s. In HQ 114124, dated January 30, 1998, we found that collapsible wood containers with steel supports, and fitted with bags to hold juice concentrate, qualify as instruments of international traffic. Consequently, we find that the subject wooden bins qualify as IIT’s pursuant to 19 U.S.C. § 1322(a). HOLDING: The subject wooden bins qualify as instruments of international traffic and may be released pursuant to 19 CFR § 10.41a. Sincerely, Jerry Laderberg Chief Entry Procedures and Carriers Branch