Instruments of International Traffic (IIT); 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a(a)(3); PurFresh, Inc. (“PurFresh”) PFT Transport Units (“PFT Units”); accessories of IIT.

HQ H218675 August 9, 2012 BOR-4-07-OT:RR:BSTC:CCI H218675 DAC CATEGORY: Carriers Joseph M. Spraragen Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 399 Park Avenue, 25th Floor New York, New York 10022-4877 RE: Instruments of International Traffic (IIT); 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a(a)(3); PurFresh, Inc. (“PurFresh”) PFT Transport Units (“PFT Units”); accessories of IIT. Dear Mr. Spraragen: This letter is in response to your correspondence of May 17, 2012, in which you request a ruling on behalf of your client, PurFresh, Inc. (“PurFresh”) located in Menlo Park, California. In your request, you inquire whether certain PFT Transport Units, as described below, qualify for designation as accessories of instruments of international traffic (IIT) under 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(3). A sample for examination was provided with your request. Our ruling is set forth below. FACTS: The following facts are from your letter dated May 17, 2012, which includes pictures of the subject article. The articles in question are described as “PFT Transport Units (“PFT Units”). These articles are affixed to refrigerated containers to enhance the air quality inside the container in order to preserve and extend the shelf life of perishable produce in transit. The PFT Units enhance the atmosphere inside the refrigerated container by generating ozone that is continuously supplied during the container’s voyage. The ozone acts to control molds, yeast and bacteria in the air inside the container and on surfaces. The PFT Unit also regulates ripening by eliminating ethylene. The logistics of the use of the PFT Unit closely mirrors the logistics of the use of the container. The PFT Units travel with filled containers to the ports of unlading. When the perishable produce is removed from the container, the PFT Unit is either removed from the refrigerated container and shipped to another location for use with another container or the PFT remains on the container for use with another shipment. PurFresh states that it retains ownership of the PFT Units at all times and leases them to container lines or shippers for the period of time the perishable cargo is in transit in a refrigerated container. The PFT Units are capable of being reused numerous times and each PFT Unit has a unique serial number. PurFresh states that at present, the PFT Units are all manufactured in the United States. PurFresh also claims that installation of the PFT Unit into a refrigerated shipping container takes less than 15 minutes. See 19 CFR § 10.41a(a)(3). Images of PFT Units are provided below.
Images of the front (left) and back (right) of the PurFresh PFT Transport Unit are above.
Images of the PFT Transport Unit being installed on a refrigerated shipping container. ISSUE: Whether the “PFT Units” as described above may be designated as accessories of instruments of international traffic (IIT) within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(3). 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 accessories of 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 CFR § 10.41a(a)(1). (emphasis added.) See also 19 CFR § 10.41a(a)(2, 3). In prior determinations, CBP has ruled that certain articles of similar nature, use and construction as those presently under consideration qualify as accessories of instruments of international traffic pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. See HQ 116684 (Aug. 17, 2006); HQ H005096 (Mar. 12, 2007); HQ H030677 (Jul. 17, 2008); HQ H080177 (Dec. 8, 2009); HQ H191165 (Jan. 19, 2012). See also H030677 (July 17, 2008); HQ 116573, (Dec. 19, 2005). HQ H016491 (Oct. 1, 2007); HQ 114150 (Dec. 12, 1997); Treas. Dec. 71-159, Cust. B. & Dec. 296 (June 18, 1971); 101 Treas. Dec. 527, T.D. 66-184, (Aug. 29, 1966); 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 Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP, on behalf of PurFresh, that the requisite criteria for designation of the subject PFT Units as accessories of instruments of international traffic have been met. The PFT Units are used together with refrigerated shipping containers to transport perishable products that must be transported in refrigerated temperature controlled containers. See 19 CFR § 10.41a(a)(3). Upon examination we find the subject units are durable and capable of being used numerous times. Accordingly, the subject PFT Units, when used with refrigerated containers meet the requisite criteria to qualify as accessories of IIT pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(3). See also HQ 116684 (Aug. 17, 2006); HQ H005096 (Mar. 12, 2007). We note that the entry specific classification under the Harmonized Tariff Schedule of the United States (HTSUS) for such articles is dependent entirely upon the specific facts surrounding each individual importation transaction and as such, may only be determined on an individual case by case basis. HOLDING: The subject PFT Units are used with refrigerated shipping containers and are hereby designated as accessories of instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(3), and may be released without entry or the payment of duty pursuant to the provisions of 19 CFR § 10.41a(a)(3). Specifically, this designation includes PFT Units that have been imported with containers under 19 CFR 10.41a(a)(3). Additionally, it includes PFT Units that are imported as separate articles intended for installation in containers pursuant to the provisions of 19 CFR 10.41a(a)(2). 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