Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. §§ 10.41a(a)(1), 10.41a(a)(2); HTSUS subheading 9803.00.50; Siemens Gamesa; spinner frames; accessories

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H317495 April 8, 2021 BOR-07-OT:RR:BSTC:CCR H317495 TNA CATEGORY: Carriers Brian K. Baldwin Kuehne-Nagel 4100 N Commerce Drive East Point, GA 30344 RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. §§ 10.41a(a)(1), 10.41a(a)(2); HTSUS subheading 9803.00.50; Siemens Gamesa; spinner frames; accessories Dear Mr. Baldwin: This is in response to your February 21, 2021 ruling request on behalf of Siemens Gamesa. In your submission, you request a ruling concerning whether certain spinner frames qualify as Instruments of International Traffic (IITs) and therefore, may be classified 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 February 21, 2021 ruling request and your emails of March 22, 2021 and April 7, 2021. The subject items are spinner frames that are used to transport parts of wind turbines. These frames consist of a metal frame and smaller components- bolts, nuts, and washers that are used for securing the imported turbine to the spinner frame. Each of these items is made of heavy-duty, welded steel, with welded or bolted joints and connections. The typical life cycle of a spinner frame and its associated components is in excess of 10 years unless they sustain significant, unrepairable damage. There are approximately 1000 spinner frames currently in use. The majority of the spinner frames are serialized and Gamesa in the process of serializing the remainder. When this process is complete, Gamesa will be note the serial number data on its entry documents. The average lifespan of the subject spinner frames is five to eight years, and they are reused three to five times per year. Once imported, the spinner frame is used to spin and adjust the placement of the turbine’s hub as it is installed on the wind turbine unit in various locations in the United States including, but not limited to, Ohio, North Carolina, New York, and West Virginia. The port through which the spinner frames are imported varies depending on the location of the wind farm. After unloading, the spinner frame is exported back to the manufacturer in either China or Spain, where it is re-used to transport more wind turbine hubs. The following are images of the subject spinner frames, taken from your February 21, 2021 ruling request and April 7, 2021 email.


ISSUES Whether the subject Spinner Frames are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). Whether the subject bolts, nuts, and washers that are used for securing the hub/ turbine unit to the spinner frames are accessories to IITs within the meaning of 19 C.F.R. § 10.41a(a)(2). LAW AND ANALYSIS Per 19 C.F.R. § 141.4(a), “all merchandise imported into the United States is required to be entered, unless specifically excepted.” The four exceptions to the requirement of entry are listed under 19 C.F.R. § 141.4(b), one of which is instruments of international traffic. 19 C.F.R. § 141.4(b)(3). 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 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 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). IITs may be released without entry or the payment of duty, subject to the provisions of this section. 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). 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 used as a container or holder must be: (1) substantial, (2) suitable for and capable of repeated use, and (3) used in significant numbers in international traffic. See HQ H291037 (Jan. 9, 2018); 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). The subject spinner frames are substantial inasmuch they are made of steel and have a life expectancy in excess of ten years. These items are also suitable for and capable of reuse, in that they are reused three to five times a year for each year of their life expectancy. 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). In addition, there are approximately 1000 of them in circulation. Prior CBP rulings have also determined that similar frames used to transport parts of Gamesa’s wind turbines are IITs. In HQ H266424 (Oct. 7, 2015), for example, CBP analyzed Gamesa’s wind turbine blade fixtures, which transported the company’s wind turbine blades. There, CBP found that these items were substantial because they were made of heavy-duty, welded steel, with welded or bolted joints and connections. CBP also found that they were suitable for and capable of repeated use because they had a lifespan in excess of 10 years and were used up to 157 times annually. Lastly, CBP noted that they were used in significant numbers in international traffic because there were more than 1000 of them in circulation. As a result, CBP found that these items were IITs. Furthermore, in HQ H266222 (Oct. 7, 2015), CBP analyzed Gamesa’s wind turbine hub platform stands, which were used to transport the wind turbines’ hub component. There, CBP noted that these items were suitable for and capable of repeated use because they had a useful life in excess of 10 years and will be used up to 157 times annually, and that they were used in significant numbers in international traffic because there were in excess of 1300 of them in circulation. As a result, CBP found that these items were IITs. Similarly, the subject spinner frames are used to hold and transport parts of wind turbines. In addition, these items are substantial in that they are made of steel and have a life expectancy in excess of ten years. They are capable and suitable of reuse in that they are reused three to five times a year. Lastly, there are sufficient numbers of them in circulation in that there are approximately 1000 of them in circulation. As such, we find that the subject spinner frames are IITs. ISSUE 2 In your ruling request, you argued that the nuts, bolts and washers are used with the subject spinner frames are accessories to IITs. Pursuant to 19 C.F.R. § 10.41a(a)(2), (2) Repair components, accessories, and equipment for any container of foreign production which is an instrument of international traffic may be entered or withdrawn from warehouse for consumption without the deposit of duty if the person making the entry or withdrawal from warehouse files a declaration that the repair component was imported to be used in the repair of a container of foreign production which is an instrument of international traffic, or that the accessory or equipment is for a container of foreign production which is an instrument of international traffic. The Center director must be satisfied that the importer of the repair component, accessory, or equipment had the declared intention at the time of importation. 19 C.F.R. § 10.41a(a)(2). CBP has previously ruled that certain articles of similar nature, use and construction as the subject nuts, bolts and washers qualify as accessories to instruments of international traffic within the meaning of 19 C.F.R. § 10.41a(a)(2). In HQ H266222 (October 7, 2015), for example, CBP held that sets of bolts, nuts, and washers used for securing the hub of a wind turbine to the hub stand used to transport it were accessories under 19 C.F.R. § 10.41a(a)(2). Similarly, in the present case, the nuts, bolts and washers at issue are specifically designed for use with the subject spinner frames and are used to secure the imported wind turbines to the spinner frames. In addition, the nuts, bolts and washers are imported with the spinner frames. As discussed above, the subject spinner frames are IITs. Accordingly, we find that the subject nuts, bolts and washers are accessories for IITs under 19 C.F.R. § 10.41a(a)(2). Please also note that, should the spinner frames, nuts, bolts and washers enter domestic commerce, they will be subject to formal entry and payment duty. In addition, they may be subject to antidumping duties and countervailing duties (“AD/CVD”) for steel racks from the People’s Republic of China. A list of current AD/CVD cases can be found at the United States International Trade Commission website at http://www.usitc.gov. HOLDING The subject Spinner Frames are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). The subject nuts, bolts and washers are accessories to IITs within the meaning of 19 C.F.R. § 10.41a(a)(2). Sincerely, Lisa L. Burley Chief/Supervisory Attorney-Advisor Cargo Security, Carriers and Restricted Merchandise Branch Office of Trade, Regulations and Rulings U.S. Customs and Border Protection