Instruments of International Traffic (IIT); 19 U.S.C. § 1322(a); 19 CFR § 10.41a(a)(1); 19 CFR Part 115; Yusen Logistics (Americas) (“Yusen”), collapsible packing crates.

HQ H234925 January 9, 2013 BOR-4-07-OT:RR:BSTC:CCR H234925 DAC CATEGORY: Carriers Nicole A. Kehoskie Sandler, Travis & Rosenberg, P.A. 225 West Washington Street, Suite 1640 Chicago, IL 60606 RE: Instruments of International Traffic (IIT); 19 U.S.C. § 1322(a); 19 CFR § 10.41a(a)(1); 19 CFR Part 115; Yusen Logistics (Americas) (“Yusen”), collapsible packing crates. Dear Ms. Kehoskie: This letter is in response to your correspondence of October 15, 2012, in which you request a ruling on behalf of your client, Yusen Logistics (Americas), (hereinafter also referred to as “Yusen”). In your request, you inquire whether certain reusable collapsible packing crates, 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 15, 2012. The articles in question are described as collapsible, reusable packing crates that are made of wood and steel (hereinafter referred to as “collapsible packing crates”). These articles are used for packing, holding and protecting automobile parts. The collapsible packing crates are used as containers for shipping various articles, to include automobile parts. The collapsible packing crates, when assembled are reported to measure 112 cm in height, 110 cm in width and 135 cm in depth. The collapsible packing crates, when collapsed, are reported to measure 15 cm in height, 110 cm in width and 135 cm in depth. At present, the subject collapsible packing crates are reported to have a value of $1,156.83 each. The collapsible packing crates are made of wood and steel and are manufactured in Japan. The collapsible packing crates are reported to be approximately fifteen years old and to have an estimated remaining usable life of ten years. The collapsible packing crates are capable of being reused an estimated twelve times per year. The collapsible packing crates are currently planned for primarily shipping products from Asia to the United States. See 19 CFR § 10.41a(a)(1). Images of various collapsible packing crates are provided below.




Images of various collapsible packing crates are provided above. ISSUE: Whether the subject collapsible packing crates, 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 HQ 116047, Dec. 1, 2003; HQ 115959, July 7, 2003; HQ 112303, Aug. 14, 1992; HQ 113687, Feb. 27, 1997. See also HQ H167475 (July 20, 2011); HQ 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); 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 Sandler, Travis & Rosenberg, P.A. on behalf of Yusen Logistics (Americas), that the requisite criteria for designation of the subject collapsible packing crates as instruments of international traffic have been met. The collapsible packing crates are used to transport automobile parts. Yusen states that the subject collapsible packing crates are scheduled to be reused approximately twelve times per year and have an estimated additional useful life of ten years. We find the subject collapsible packing crates are used as containers and are substantial. Accordingly, the subject collapsible packing crates meet the requisite criteria to qualify as IIT pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. HOLDING: The subject collapsible packing crates are used as containers and 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 Restricted Merchandise Branch Office of International Trade, Regulations & Rulings U.S. Customs and Border Protection