Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a; Substantial Containers or Holders; Harmonized Tariff Schedule of the United States (HTSUS) subheading 9803.00.50; Steel Cylinder Bases.

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H244158 August 22, 2013 BOR-7 OT:RR:BSTC:CCR H244158 RES CATEGORY: Carriers Jill M. Hurley, JD Senior Customs and Trade Advisor Livingston International, Inc. 670 Young Street Tonawanda, NY 14150 RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a; Substantial Containers or Holders; Harmonized Tariff Schedule of the United States (HTSUS) subheading 9803.00.50; Steel Cylinder Bases. Dear Ms. Hurley: This is in reference to your June 12, 2013, ruling request on behalf of your client, Tarkett, Inc. (“Tarkett”), in which you inquire whether steel cylinder bases (“steel bases”) qualify as “instruments of international traffic” (IITs) 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 pursuant to subheading 9803.00.50, Harmonized Tariff Schedule of the United States (“HTSUS”). FACTS The following facts are from your June 12, 2013, ruling request, and an August 9, 2013, email, which included pictures of the subject articles. The subject articles are described as steel cylinder bases made of steel and weighing approximately 3,800 pounds that are used to secure copper printing plates. The subject articles are owned by Tarkett and will only be used for the transportation or transfer of copper printing plates in international traffic and will not be held in the United States but will be exported repeatedly and reused for subsequent importations. The steel bases help the copper printing plates maintain their shape and prevent them from being damage in transit. The steel bases are not used for any other purpose. You state that the importer has over 400 of these steel bases in continual repeated use in the importation of its merchandise of at least once to twice a month and that the subject articles have been in use since the 1960s.

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Figure 3 ISSUE Whether the subject steel cylinder bases are instruments of international traffic pursuant to 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a? LAW AND ANALYSIS Pursuant to 19 U.S.C. § 1322(a), 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. The relevant Customs and Border Protection (CBP) regulations implementing that statute are found at 19 C.F.R. § 10.41a(a)(1) which provides 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). To qualify for entry-free and duty-free treatment as IITs under the aforementioned statutory and regulatory authority, the article must be a substantial container or holder. As stated above, CBP is authorized to designate as an IIT such additional articles not specifically noted in 19 C.F.R. § 10.41a(a)(1). Historically, CBP has held in its published decisions that in order to qualify as an IIT within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1), an article must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. See HQ H016491 (Oct. 1, 2007); HQ 114150 (Dec. 12, 1997); HQ 107545 (May 7, 1985); Treas. Dec. 71-159, Cust. B. & Dec. 296 (June 18, 1971); 99 Treas. Dec. 533, No. 56247 (Aug. 26, 1964). Subheading 9803.00.50, HTSUS provides for the duty-free treatment of: Substantial containers and holders, if products of the United States (including shooks and staves of United States production when returned as boxes or barrels containing merchandise), or if of foreign production and previously imported and duty (if any) thereon paid, or if of a class specified by the Secretary of the Treasury as instruments of international traffic, repair components for containers of foreign production which are instruments of international traffic, and accessories and equipment for such containers, whether the accessories and equipment are imported with a container to be reexported separately or with another container, or imported separately to be reexported with a container. (footnote and emphasis added). Subchapter 98 of the HTSUS only applies to: Substantial containers or holders which are subject to tariff treatment as imported articles and are: Imported empty and not within the purview of a provision which specifically exempts them from duty; or Imported containing or holding articles, and which are not of a kind normally sold therewith or are entered separately therefrom; and Certain repair components, accessories and equipment. See U.S. Note 1, et seq., Chapter 98, HTSUS. The steel cylinder bases are substantial, as they are made of galvanized metal; are suitable and capable for repeated use in that they are exported and reused for subsequent importations of merchandise twelve to twenty-four times annually; and the steel cylinder bases are used in significant numbers insofar as approximately 400 cylinder bases are used annually to transport cargo in international traffic. Based on the foregoing, the steel cylinder bases are instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 C.F.R. § 10.41a(a) and therefore, may be released without entry or the payment of duty under subheading 9803.00.50, HTSUS. HOLDING The subject steel cylinder bases described above are designated instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a and they may be released without entry or the payment of duty under subheading 9803.00.50, HTSUS. Sincerely, Lisa L. Burley Acting Chief Cargo Security, Carriers and Restricted Merchandise Branch Office of International Trade, Regulations & Rulings