Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 CFR § 10.41a; Plastic Hangers

HQ H059178 August 5, 2009 BOR-4-07:OT:RR:BSTC:CCI H059178 ALS CATEGORY: Carriers Ms. Brenda Bodnar Director Corporate Customs Compliance Jones Apparel Group 180 Rittenhouse Circle Bristol, Pennsylvania 19007 RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 CFR § 10.41a; Plastic Hangers Dear Ms. Bodnar: This is in response to your correspondence, dated April 15, 2009, with a sample, in which you requested a ruling on whether certain plastic hangers qualify as instruments of international traffic under 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. Our ruling is set forth below. FACTS: The plastic hangers in question are of one piece molded construction and measure approximately six and 1/16 inches thick and 16 inches long. They are manufactured by A&E (Far East) Products, Ltd. in various countries. They are used to import upper body garments into the United States. You state that your company would like to import the plastic hangers into the United States under Harmonized Tariff Schedule of the United States Annotated (HTSUSA) classification subheading 3923.90.0080, while the garments will be imported under a different HTSUSA provision. You have stated that the plastic hangers are substantial, suitable for and capable of repeated use, and used in importing 2,500,000 dozen sweaters/pullovers or shirts a year. ISSUE: Whether the plastic hangers described above may be designated as instruments of international traffic pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. LAW AND ANALYSIS: Pursuant to 19 U.S.C. § 1322(a), instruments of international traffic (also referred to herein as “IITs”) shall be excepted from the application of the Customs laws to the extent that such terms and conditions are prescribed in regulations or instructions. Pursuant to 19 CFR § 10.41a(a)(1), the Commissioner of Customs and Border Protection (CBP) is authorized to designate as IITs such additional articles not specifically noted in that section. Once designated as such, the instruments may be released without entry or payment of duty. To qualify as an IIT within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(1), an article must be used as a container or holder. The article also must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. See Harmonized Tariff Schedule of the United States Annotated subheading 9803.00.50 and CBP Ruling HQ 112303 (August 14, 1992). We have also ruled on articles of similar construction and purpose to the plastic hangers under consideration. In CBP Ruling HQ H042107 (November 24, 2008), we held that plastic garment hangers made of molded plastic, qualified as an IIT. See also HQ H050604 (March 18, 2009). HQ H042107 cited Holly Stores, Inc. v. United States, 667 F.2d 1387, which held that the concept of reuse referred to in numerous CBP rulings means the article is used for commercial shipping and transportation purposes, not non-commercial or fugitive uses. We further defined the concept of reuse in CBP Ruling HQ 116032 (October 30, 2003), in which we held that “reuse” in this context means using more than twice. See also H042107, supra. In this case, you state that the plastic garment hangers will be used to import an estimated “2,500,000 dozen sweaters/pullovers or shirts” a year, as noted above. Given such, we find that our analysis in H042107 and HQ 116032 applies to the subject plastic garment hangers as well. Consequently, we find that the subject plastic hangers are substantial, suitable for and capable of repeated use, and are used in significant numbers in international traffic. Therefore, the subject plastic hangers qualify as IITs pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(1). HOLDING: The subject plastic garment hangers as described above are hereby designated as IITs pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(1). Sincerely, Glen E. Vereb Chief Cargo Security, Carriers, and Immigration Branch