Instruments of International Traffic; 19 U.S.C. § 1332(a); 19 C.F.R. § 10.41a(a)(3); TempSen Electronics Company.

H348345 December 31, 2025 OT:RR:BSTC:CCR H348345 MF CATEGORY: Carriers Issac Wong General Manager TempSen Electronics Company Building 17, 66 Guangfulin(E) Rd. Shanghai, China RE: Instruments of International Traffic; 19 U.S.C. § 1332(a); 19 C.F.R. § 10.41a(a)(3); TempSen Electronics Company. Dear Mr. Wong: This is in response to your May 14, 2025, ruling request on behalf of TempSen Electronics Company (‘TempSen”). In your request you inquire whether specific Tracking Devices qualify as “instruments of international traffic” within the meaning of 19 U.S.C. § 1332(a). Our ruling is set forth below. Facts The following facts are from your ruling request and supplements thereto. The subject device is the ITAG4 Bio Temperature Monitor (“subject device”). TempSen is the manufacturer of the ITAG4 Bio Temperature Monitor. The ITAG4 is a compact temperature monitoring device used during the international transport of temperature-sensitive goods, such as pharmaceuticals and clinical trial materials. It is placed inside intermodal shipping containers and operates by continuously monitoring and recording ambient temperatures within a container. The subject devices are typically placed inside a dedicated slot or integrated holder within the interior wall of the shipping container or insulated packaging system. The subject device is manually activated before shipment and placed inside a shipping container or thermal box. The device begins logging temperature readings at regular intervals (e.g., every 5 minutes) using its internal Negative Temperature Coefficient (“NTC”) sensor. Data is stored in onboard flash memory. At the destination, the recipient can plug the device into a standard USB port to download the recorded temperature data. Consequently, a PDF report is automatically generated. The subject devices are manufactured in China, and are battery powered. The subject device contains replaceable Lithium-Ion batteries. The subject devices will operate on a full charge for up to 90 to 180 days before reaching the end of their useful life. The battery is not user-replaceable or rechargeable, as it is welded directly to the circuit board. The device is designed for rugged shipping environments and housed in a durable polycarbonate plastic selected for its durability, thermal resistance, and impact protection. The ITAG4 is not marketed for consumer use and is not used outside the context of international shipments. Each device is assigned a unique serial number that is clearly printed on the exterior label and embedded in the firmware. This serial number is used for inventory tracking, device registration, and traceability throughout the supply chain. TempSen reports that over three hundred thousand units of the subject devices are currently in circulation internationally. The devices are sold and shipped directly to TempSen’s customers, who file the entry summaries under HTSUS subheading 9025.19 with applicable duties paid. To TempSen’s knowledge, there have been no instances where the devices were imported without proper entry filing or under the IIT exemption. Subsequently, Tempsen provides continued support and assistance to its customers. If a device is to be reused, it is typically sent back to TempSen for inspection, requalification, and any necessary refurbishing. TempSen’s assistance includes diagnostics, firmware checks, accuracy verification and battery replacement (if applicable). If the battery is replaced and the internal components remain functional, the device can operate beyond the initial 180-day runtime. Under typical usage conditions—with proper handling and regular refurbishment (including battery replacement, functional testing, and recalibration where necessary), the service life can theoretically exceed two years. Refurbishment by TempSen is required for reuse, particularly due to the non-user-replaceable battery and the need for recalibration or data resetting. Without returning the units to TempSen, customers cannot independently refurbish the devices for safe and accurate reuse. With refurbishment devices can typically be reused for five to ten voyages, depending on transport conditions and duration, with each refurbishment extending the operational life. Without refurbishment, devices are generally limited to one voyage. Issue Whether the subject devices qualify for consideration as accessories to IITs within the meaning of 19 C.F.R. § 10.41a(a)(3) in the context of direct shipments to purchasers who intend to utilize them as intended at a later time. 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 (“IIT”). 19 C.F.R. § 141.4(b)(3). Subheading 9803.00.0, 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 Treasury1 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). Such instruments may be released without entry or 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 1 Customs revenue functions have been delegated to the Secretary of Homeland Security by the Secretary of Treasury, with exceptions herein not applicable, under the authority of the Homeland Security Act of 2002, Pub. L. 107-296. See Treas. Dep't Order 100-16 (May 15, 2003). 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).2 Pursuant to 19 C.F.R. § 10.41a(a)(3), an IIT “includes the normal accessories and equipment imported with any such instrument which is a ‘container’ as defined in Article 1 of the Customs Convention on Containers.” See 19 C.F.R. § 10.41a(a)(3). CBP has consistently held that shipping containers are “containers” and IITs. See, e.g., HQ H251366 (June 4, 2014) (finding that reefer shipping containers are IITs); HQ H044900 (Dec. 18, 2008) (holding that “it is well settled that intermodal cargo containers qualify as ‘instruments of international traffic.’”); HQ 113003 (Jan. 27, 1994)(holding that intermodal cargo containers qualify for treatment as IITs); HQ 116684 (Aug. 17, 2006) and HQ W116719 (Nov. 30, 2006) (holding that intermodal containers are IITs).3 Annex 6 of the Customs Convention on Containers provides that: The term “accessories and equipment of the container” shall cover in particular the following devices, even if they are removable : (a) equipment for 2 The requirement that an article be “substantial” is not only a threshold requirement under 9803.00.50, but also a requirement for an article to be an instrument of international traffic pursuant to CBP decisions. The origin for the criterion found in CBP decisions that an article be “substantial” is found in Schedule 8, Item 808.00 of the Tariff Schedule of the United States (1963)(TSUS), the predecessor provision to 9803.00.50, HTSUS. Likewise, the criterion that an article be “suitable for and capable of repeated use” is found in Schedule 8, Item 808.00, TSUS, Headnote 6(b)(ii)(stating that the article must be capable of “reuse”). Although the requirement that an article be capable of reuse is no longer under subheading 9803.00.50, HTSUS (the successor provision to Item 808.00, TSUS), to receive duty-free treatment thereunder nevertheless, “reuse” is still required, pursuant to CBP decisions, for an article to be considered an instrument of international traffic. 3 See also The Customs Convention on Containers, which defines the term “container” as an: . . . article of transport equipment (lift-van, movable tank or other similar structure): (i) fully or partially enclosed to constitute a compartment intended for containing goods; (ii) of a permanent character and accordingly strong enough to be suitable for repeated use; (iii) specially designed to facilitate the carriage of goods, by one or more modes of transport, without intermediate reloading; (iv) designed for ready handling, particularly when being transferred from one mode of transport to another; (v) designed to be easy to fill and to empty; and (vi) having an internal volume of one cubic metre or more; The term “container” shall include the accessories and equipment of the container, appropriate for the type concerned, provided that such accessories and equipment are carried with the container. The term “container” shall not include vehicles, accessories or spare parts of vehicles, or packaging. Demountable bodies, are to be treated as containers. Customs Convention on Containers, 1972, Ch. 1, Art. 1(c), et seq. controlling, modifying or maintaining the temperature inside the container; (b) small appliances, such as temperature or impact recorders, designed to indicate or record variations in environmental conditions and impact… Customs Convention on Containers, May 2, 1972, 988 U.N.T.S. Annex 6, Page 68 (emphasis added). Headquarters Ruling (“HQ”) 116684 (Aug. 17, 2006) found that accessories to IIT are “substantial, suitable for and capable of repeated use with intermodal containers which are IITs and will serve as accessories or equipment for such containers.” CBP has previously reviewed devices similar to the subject device. For example, in HQ 116684, CBP reviewed the Tamper-Resistant Embedded Controller (“TREC”) which was a container-security, monitoring and tracking device that, once installed on a shipping container, collects, analyzes, and reports data regarding the status, condition and location of the container and its contents from point of origin to destination. HQ 116684 (Aug. 17, 2006). CBP found that these devices were substantial, suitable for and capable of repeated use with intermodal containers which are IITs. Id. More recently, in HQ 335140 (May 17, 2024), CBP determined that tracking devices, capable of 300 recharges, which utilized cellular connectivity to report location and merchandise condition data from the point of origin to ultimate destination were IIT accessories. Based upon review of the submission and information provided, the subject devices are substantial and used in significant numbers in international traffic. They are substantial in that they are made of polycarbonate plastic. They are used in significant numbers in international commerce, given that approximately 300,000 subject devices are currently used in international traffic. However, the subject ITAG4 Bio Temperature Monitor devices do not appear to suitable for and capable of reuse. TempSen indicates that the subject devices may, or may not, be reused. TempSen asserts that, after a device’s initial use, the customers can choose to recycle and requalify the devices for further use and that some do so, typically on an annual basis. TempSen also states that if a customer wishes to reuse a device, the device is typically returned to TempSen for inspection, requalification, and any necessary refurbishing, specifically the replacement of the battery. With regular refurbishment the device’s service life can exceed 2 years and encompass five to ten voyages. Importantly, the device’s capability for reuse is dependent on the battery and the battery has only a single lifespan. This differs from previous Customs rulings regarding similar devices where the battery was rechargeable. See e.g., H080177 (Dec. 8, 2009) (“The Sendum PT200 is a battery powered, portable convert GPS tracking device that is enabled by cellular signaling technology. It has a hard plastic, water resistant enclosure which houses a rechargeable battery for repetitive use. The durable nature of the product means that its life span is approximately five (5) years.”); H225100 (Sept. 17, 2012) (“It operates on rechargeable internal power… with an approximate lifespan of at least 30 years for each unit.”); and H334140 (May 17, 2024) (“The batteries for all three devices are rechargeable… and can be recharged over 300 times before the unit reaches the end of its useful life.”). Thus, because the reuse of the subject devices is contingent upon their refurbishment by the manufacturer we do not consider the subject devices inherently capable of reuse. Moreover, in this matter TempSen indicates that the devices are initially entered into the United States for purposes of direct sales to domestic importers. Here, the subject devices are not imported with any instrument which is a “container” as defined in Article 1 of the Customs Convention on Containers, as required by 19 C.F.R. § 10.41a(a)(3). Rather, the TempSen devices are imported separately for sale to domestic purchasers as merchandise. Based on the foregoing, in general, the devices are not eligible for designation as accessories to IITs, and do not qualify for entry-free and duty-free treatment as accessories to IITs pursuant to 19 C.F.R. § 10.41a(a)(3). More specifically, because the devices are being imported separately for sale to domestic purchasers as merchandise the subject devices do not qualify for entry-free and duty-free treatment as IIT accessories irrespective of their particular characteristics. Therefore, the devices should undergo formal entry process, classification under the HTSUS, and payment of applicable duties. Holding The subject TempSen ITAG4 Bio Temperature Monitor devices that are imported for direct sale to TempSen’s customers as described above do not qualify for treatment as accessories of instruments of international trade within the meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(3). Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a CBP field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.” If the facts at hand vary from the facts stipulated to herein, this decision shall not be binding on CBP as provided for in 19 C.F.R. § 177.2(b)(1), (2), and (4), and § 177.9(b)(1) and (4). Sincerely yours, W. Richmond Beevers, Chief Cargo Security, Carriers, and Restricted Merchandise Branch