Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a(a)(1); HTSUS subheading 9803.00.50; SkyCell AG (“SkyCell”); “SkyCell 1500” and “SkyCell 770” climate controlled transport devices.

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H265208 July 22, 2015 BOR-07-OT:RR:BSTC:CCR H265208 DAC CATEGORY: Carriers Elizabeth Gibson American Consultative Logistics 470 E. Market Street Long Beach, NY 11561 RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a(a)(1); HTSUS subheading 9803.00.50; SkyCell AG (“SkyCell”); “SkyCell 1500” and “SkyCell 770” climate controlled transport devices. Dear Ms. Gibson: This is in response to your March 23, 2015, ruling request to the National Commodity Specialist Division (“NCSD”) on behalf of SkyCell AG (“SkyCell”), which we received on May 29, 2015. The NCSD forwarded your request to this office for our direct response to you. In your submission, you request a ruling concerning whether certain transport devices, identified by SkyCell as the “SkyCell 1500,” and “SkyCell 770,” qualify as instruments of international traffic (IIT) and are therefore, classifiable under subheading 9803.00.50 of the Harmonized Tariff Schedule of the United States (HTSUS). Our decision follows. FACTS The following facts are from your ruling request and information obtained through the SkyCell web pages. See: http://skycell.ch/products/ The subject transport devices, known as the “SkyCell 1500” and “SkyCell 770,” are manufactured by SkyCell and are made in Switzerland. The subject transport devices are currently used in international traffic between the United States, Switzerland and Brazil, may be used in other locations in the future, and are not being used in domestic traffic within the United States. The subject transport devices have a unique serial number that appears on each device, which allows SkyCell to track each of the units. The approximate quantity of transport devices that are shipped in international traffic is currently approximately 550 units transporting five to ten shipments each per year for the SkyCell 770 and approximately ten (10) units transporting an estimated five to ten shipments each per year for the SkyCell 1500. Both transport devices are constructed with an inner casing made of aluminum, and an inner container layer of acrylonitrile butadiene styrene (ABS) or polyethylene terephthalate (PET) plastics, a cooling gel with a containment of polyethylene (PE) filled with paraffin wax, and PET foils coated with aluminum formed into a honeycomb structure, and an outer container layer made of aluminum frame and ABS plastics. In addition, each device has one temperature and humidity data logger inside and one temperature and humidity data logger outside each unit. The SkyCell 1500 transport device has exterior dimensions of 1530 x 1320 x 1600mm (L x W x H). The SkyCell 1500 transport devices interior dimensions are 1235 x 1040 x 1220mm (L x W x H). The SkyCell 1500 tare weight is 497 kilograms (kgs) and are capable of holding another 1000 kgs of payload inside. The SkyCell 1500 transport devices have an estimated two to four year lifespan for each unit. The SkyCell 770 transport device has exterior dimensions of 1200 x 1000 x 1600mm (L x W x H). The SkyCell 770 transport devices interior dimensions are 915 x 705 x 1200mm (L x W x H). The SkyCell 770 tare weight is 315 kgs and are capable of holding another 370 kgs of payload inside. The SkyCell 770 transport devices have an estimated lifespan of one to two years for each unit. Below are illustrations you provided in your submission of the subject SkyCell 1500 transport devices.
Illustration of SkyCell 1500, with cargo inside and front doors open
Illustration of SkyCell 1500, with front door open and interior door closed
Illustration of SkyCell 770, with front panel open
Illustration of SkyCell 770, with cargo inside and front panel open ISSUE Whether the subject SkyCell 1500 and SkyCell 770 transport devices are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). 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. 19 C.F.R. § 10.41a(a)(1)(emphasis added). Such instruments may be released without entry or the payment of duty, subject to the provisions of this section. 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: (a) Substantial containers or holders which are subject to tariff treatment as imported articles and are: (i) Imported empty and not within the purview of a provision which specifically exempts them from duty; or (ii) Imported containing or holding articles, and which are not of a kind normally sold therewith or are entered separately therefrom; and (b) Certain repair components, accessories and equipment. See U.S. Note 1, et seq., Chapter 98, HTSUS. Pursuant to 19 C.F.R. § 10.41a(a)(1), “[t]he Commissioner of Customs [currently 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.” See 19 C.F.R. § 10.41a(a). We note that in regards to temperature controlled cargo containers, in HQ H225100 (Sept. 17, 2012), CBP held that, “[t]he temperature-controlled cargo containers described above qualify as IITs within the meaning of 19 U.S.C. §1322(a) and 19 CFR § 10.41a;” see also HQ H167475 (July 20, 2011) holding that temperature control containers are IITs; HQ H218509 (July 30, 2012) holding that temperature control containers are IITs. In regards to reusable shipping containers, in HQ H218556 (May 24, 2012), CBP held that, “[t]he Front Opening Shipping Boxes or “FOSB” boxes, as well as the SKY Cubes and Hybox containers … qualify as “instruments of international traffic” within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a.” Based upon review of the submission and information provided, the subject SkyCell 1500 and SkyCell 770 transport devices are containers that are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. The articles have an estimated useful life of two years and over five hundred units are to be used in international traffic. Based on the foregoing, the subject “SkyCell 1500,” and “SkyCell 770” are designated as IITs; therefore, they will qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1) and HTSUS subheading 9803.00.50. HOLDING The subject SkyCell 1500 and SkyCell 770 transport devices are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). Sincerely, Lisa L. Burley Chief/Supervisory Attorney-Advisor Cargo Security, Carriers and Restricted Merchandise Branch Office of International Trade, Regulations and Rulings U.S. Customs and Border Protection