Instruments of International Traffic; Mexican-based Truck; 19 U.S.C. § 1322(a); 19 C.F.R. § 123.14

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H320131 September 17, 2021 BOR-4-04-OT:RR:BSTC:CCR HQ H320131 AFM CATEGORY: Carriers Tammie Krauskopf, Esq. 1533 N. Mohawk St., Unit 3 Chicago, IL 60610 RE: Instruments of International Traffic; Mexican-based Truck; 19 U.S.C. § 1322(a); 19 C.F.R. § 123.14 Dear Ms. Krauskopf: This is in response to your letter of July 22, 2021 on behalf of Delta Distribution and Warehouse (hereinafter “Delta”) of El Paso, Texas, requesting a ruling regarding the entry requirements for Mexican-based trucks and drivers into the United States. Our ruling on this matter is set forth below: FACTS Delta contemplates transportation of Mexican merchandise destined for the United States which will be loaded in a Mexican-based trailer in Mexico and transported to El Paso, Texas. The Mexican goods would be unladen and then laden into an American truck destined for Dallas with a different Mexican driver holding a B1 Visa. The same American truck would then be used to lade an international shipment in Dallas, destined for Juarez, Mexico. The American truck would then return to the El Paso warehouse to wait for Mexican Customs to complete their formalities. Once completed, the load would be unladen from the American truck and laden to a Mexican truck for export to Mexico. ISSUES Whether the use of a Mexican-based truck in the United States as described above is violative of 19 C.F.R. § 123.14(a). Whether the use of a Mexican-based truck in the United States as described above is considered “incidental to the immediately prior or subsequent engagement of that vehicle in international traffic” under 19 C.F.R. § 123.14(c)(1). LAW AND ANALYSIS Instruments of international traffic may be entered without entry and payment of duty under the provisions of 19 U.S.C. § 1322. To qualify as instruments of international traffic, trucks having their principal base of operations in a foreign country must be arriving in the United States with merchandise destined for points in the United States, or arriving empty or loaded for the purpose of taking merchandise out of the United States. See 19 C.F.R. § 123.14(a). The phrase “taking out” has long been interpreted as meaning destined to a foreign country and does not cover merchandise that has an intended destination of a second point in the United States. See HQ 112415 (Sept. 22, 1992) and HQ 111176 (Sept. 12, 1990). Furthermore, certain foreign-based vehicles engaged, in whole or in part, in the domestic carriage of merchandise that either originate from a location outside the United States or will be subsequently moved to a destination outside the United States, or such vehicles moving without a payload between two points in the same country, shall be considered as engaged in international traffic. See Customs Bulletin Vol. 31, No. 40, pp. 7-13 (Oct. 1, 1997). Furthermore, certain foreign-based vehicles engaged, in whole or in part, in the domestic carriage of merchandise that either originates from a location outside the United States or will be subsequently moved to a destination outside the United States, or such vehicles moving without a payload between two points in the same country, shall be considered as engaged in international traffic. Id. Mexican-Based Truck With respect to the scenario under consideration, the Mexican-based trailer would be arriving in the United States from Mexico. The trailer would be arriving with Mexican merchandise destined to the United States. Consequently, this Mexican vehicle would qualify as an instrument of international traffic pursuant to 19 C.F.R. § 123.14(a). The trailer of Mexican goods would remain in international traffic until its Mexican-origin cargo is delivered to its United States destination. The American truck, in picking up the trailer of Mexican cargo from El Paso, Texas for delivery to its United States destination, would be engaged in the domestic carriage of merchandise that originated from a location outside the United States (Mexico). Similarly, in picking up an international shipment in Dallas to be transferred to a Mexican truck in El Paso, the American truck would be engaged in the domestic carriage of merchandise. The Mexican truck would again be engaged in international traffic when it receives the contents of the American truck in El Paso for export to Mexico. Therefore, because the Mexican truck would not be used in the domestic carriage of Mexican-origin cargo from one point to another within the United States in the above-described scenario, its’ use would not be violative of 19 C.F.R. § 123.14(a). “Incidental to” International Traffic Pursuant to 19 C.F.R. §123.14(c)(1), a Mexican-based vehicle “may carry merchandise …between points in the United States if such carriage is incidental to the immediately prior or subsequent engagement of that vehicle in international traffic.” This regulatory provision further provides that, “[a]ny such carriage by the vehicle in the general direction of an export move or as part of the return of the vehicle to its base country shall be considered incidental to its engagement in international traffic.” As described-above, the Mexican-based truck would not be engaged in carrying merchandise between points in the United States. The Mexican truck would merely bring the merchandise to a single point in El Paso. Therefore, the Mexican truck’s carriage of merchandise would not be “incidental to” its engagement in international traffic. Regarding the employment of Mexican drivers with a B1 visa in the above-described scenarios, we note that pursuant to 19 C.F.R. § 123.14(c)(1), a Mexican driver “will not be permitted to operate a vehicle…unless the driver is in compliance with the applicable regulations of the [former] Immigration and Naturalization Service [now CBP].” We suggest you contact U.S. Immigration and Customs Enforcement with any questions regarding the use of Mexican drivers in these scenarios. HOLDING The use of a Mexican-based truck in the United States as described above is not violative of 19 C.F.R. § 123.14. The use of a Mexican-based truck in the United States as described above is not “incidental to the immediately prior or subsequent engagement of that vehicle in international traffic” under 19 CFR § 123.14(c)(1). Sincerely, W. Richmond Beevers Chief, Cargo Security, Carriers and Restricted Merchandise Branch Office of International Trade, Regulations & Rulings U.S. Customs and Border Protection