Instruments of International Traffic; 19 U.S.C. § 1332(a); 19 C.F.R. § 10.41a(a)(1), Nippon Express USA Inc.; Collapsible and Non-collapsible Boxes and Caps.

H350299 June 26, 2026 OT:RR:BSTC:CCR H350299 MF CATEGORY: Carriers Hongyu Song Specialist, Customs Brokerage Division Nippon Express USA, Inc. 230-19 International Airport Center Blvd. Jamaica, NY 11413 RE: Instruments of International Traffic; 19 U.S.C. § 1332(a); 19 C.F.R. § 10.41a(a)(1), Nippon Express USA Inc.; Collapsible and Non-collapsible Boxes and Caps. Dear Mr. Song: This is in response to your June 30, 2025, ruling request on behalf of Nippon Express USA Inc. (“Nippon”). In your request you inquire whether “collapsible and non-collapsible boxes and caps” qualify as instruments of international traffic (“IIT”) within the meaning of 19 U.S.C. § 1332(a). Our decision follows. FACTS: The following facts are from your ruling request and supplements thereto. The subject items are the (1) “collapsible boxes and caps,” and (2) “non-collapsible boxes and caps.”1 GPS refers to the first subject item as “boxes.” Upon review, the subject boxes appear analogous to items that CBP has previously considered as variants of pallets when analyzing their status as IITs. As discussed below, we examine the subject merchandise in light of our prior treatment of pallet cubes. 1 You have asked this office for confidential treatment of bracketed information. CBP Regulations at 19 C.F.R. § 177.2(b)(7) provide that the requester of a ruling from our office may ask that privileged or confidential commercial or financial information supplied for purposes of preparing the requested ruling not be disclosed. Such requests will be considered if the information is clearly identified and the reasons for requesting that information not be disclosed are provided. If this office receives a Freedom of Information Act request for your submission, regulations at 6 C.F.R. § 5.12, et seq., regarding the disclosure of business information provide that the submitter of business information will be advised of receipt of a request for such information whenever the business submitter has in good faith designated the information as commercially or financially sensitive information. We accept your request for confidential treatment as a good faith request. 2 The subject items are designed to transport automotive fastener parts from a Japan-based corporation, Sugiura Seisakusho Co. (“Sugiura”) through international traffic to the importer, Sunright America, Inc. (“Sunright”) in the United States and be returned empty to Japan where Sugiura will subsequently refill the items and export them as part of an ongoing closed loop process. Nippon intends to ensure the timely departure of the subject items through a system of invoice linkage, tracking, and return verification. Notably, each module number is listed on the invoice and physically marked on the container, allowing traceability with all invoice information being managed digitally. The associated tracking process comprises five steps: 1. Sugiura issues and emails invoices to Sunright. 2. Sunright stores all invoice data and tracks container movements. 3. The logistics provider sends an entry summary to Sunright after customs clearance. 4. Sunright informs Sugiura of all invoice numbers that have been cleared through customs. 5. Sunright prepares empty containers for return to Japan. Finally, upon the return of the empty containers, Sugiura cross-references the module numbers with management sheets to confirm proper returns. The collapsible crates comprise a pallet-like base that can be manipulated by a forklift from two sides, and four collapsible sides which when erected can lock into place and form a cube that can be closed with the placement of a cap. The subject items can be stacked atop each other in both their collapsed and erected configurations. The non-collapsible boxes are containers which are loaded with automotive fastener parts and in turn loaded into the collapsible boxes. With respect to the subject items, their frames are constructed of polypropylene. The dimensions of the subject items are as follows: • Collapsible Boxes: 1190mm x 1127mm x 741mm • Caps for Collapsible Boxes: 1150mm x 1100mm x 8mm • Non-collapsible Boxes: 355mm x 275mm x 90mm • Caps for non-collapsible boxes: 355mm x 275mm x 90mm The subject collapsible boxes and their caps (where visible) are depicted below in their erected, erected stacked, and collapsed stacked states, respectively: 3 Box with Sides Erected Box with Sides Erected and Cap 4 Boxes with Sides Erected and Stacked 5 The subject non-collapsible boxes and their lids are depicted below: Box with Sides Collapsed and Stacked Orange and Blue non-collapsible box and associated lid. 6 The smaller non-collapsible boxes are used together with the collapsible boxes. The non-collapsible boxes are filled with imported products and are then loaded into the larger unit boxes until it contains 96 non-collapsible boxes. Nippon states that both types of boxes and their caps are used about two to three times per year. The average lifespan of the collapsible and non-collapsible boxes and their lids is five years. Approximately fifteen hundred (1500) sets of collapsible boxes and their caps and one hundred and thirty-nine thousand (139,000) non-collapsible boxes and thirty thousand (30,000) of their associated caps are currently in use. Nippon believes these boxes are manufactured in Japan, and according to the documents provided, the subject cubes in circulation at present have been formally entered by GPS under Subheadings 3923.10.2000, 3923.10.9000, and 3923.50.0000, HTSUS, with applicable duties paid. ISSUE: 1. Whether the subject collapsible boxes and their caps qualify for consideration as IIT within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). 2. Whether the subject non-collapsible boxes and their caps qualify for consideration as IIT within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). 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. See 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 Treasury2 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. 2 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). 7 (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 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).3 3 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, 8 Collapsible Boxes and Caps Pursuant to 19 C.F.R. § 10.41a(a)(1), pallets are per se IITs. In HQ H119060 (Nov. 9, 2020), CBP held that “pallets have already been designated as an instrument of international traffic by regulation. See 19 C.F.R. § 10.41a(a).” HQ H119060 (Nov. 9, 2010); see also HQ H252710 (May 19, 2014) (CBP held “the subject plastic pallets are IITs Pallets have already been designated as an instrument of international traffic by regulation. See 19 C.F.R. § 10.41a(a). In CBP Ruling HQ 345809 (May 30, 2025), we found that stackable cubes with a pallet base capable of manipulation by forklift, and four collapsible posts which locked into place to aid in securing transported merchandise were pallets eligible for treatment as IITs. Additionally, in HQ H350250 we found that collapsible and stackable foldable boxes with collapsible sides designed to lock into place and a pallet foundation were also eligible for treatment as IITs. The items under consideration are collapsible and stackable polypropylene boxes analogous to pallet cubes, comprised of collapsible sides and a pallet foundation and removable caps. The sides are designed to lock into place. Due to the high degree of similarity between the subject items and those at issue in HQ 345809 and HQ H350250, we shall also treat these items as pallets. We have previously confirmed the IIT status of articles of similar materials and construction in a number of rulings other than HQ 345809. In CBP Ruling HQ H025196 (May 15, 2008), citing CBP Ruling HQ 116575 (Jan. 26, 2006), we held that pallet boxes made of steel are IITs. In CBP Ruling HQ 116047 (Dec. 1, 2003), we also held that collapsible steel racks that hold automobile transmissions within ocean containers are IITs. Upon review of the submission and information provided, we find the subject collapsible boxes and caps are containers that are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. They are substantial in that they are made of polypropylene4 and have an average lifespan of 5 years. They are used in significant numbers in international commerce, given that approximately fifteen hundred (1500) sets of collapsible boxes and their caps are currently in use in international traffic. Lastly, the subject collapsible boxes and caps are suitable for and capable of reuse given that these units are used approximately two to three times in a 12-month period. Based on the foregoing, the collapsible boxes and caps are eligible for designation as IITs; and, therefore, qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1). However, when originally imported, the subject collapsible boxes and caps underwent normal entry process and the payment of applicable duties, and would qualify for 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. 4 See HQ H250334 (May 19, 2014) (CBP found that polypropylene plastic containers were substantial) and HQ H285811 (Aug. 14, 2017), (CBP found that polypropylene bins and boxes were substantial”). 9 duty-free treatment under Subheading 9803.00.50, HTSUS, not as IITs per se, but as “of foreign production and previously imported and duty paid” substantial holders. Non-collapsible Boxes and Caps We have previously confirmed the IIT status of articles of similar materials and construction in a number of rulings. In HQ 112534 (Jan. 25, 1993), CBP found that reusable plastic boxes designed to transport automotive strut components qualified as IITs. In HQ 116555 (Oct. 25, 2005) CBP found that plastic tote bins used to contain or hold automotive parts are IITs. More recently, in CBP Ruling HQ H250334 (May 19, 2014) we found that polypropylene plastic containers are IITs. Additionally, in HQ H285811 (Aug. 14, 2017), we held that polypropylene bins and boxes used to ship automobile parts are IITs. Upon review of the submission and information provided, we find the subject non-collapsible boxes and caps are containers that are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. They are substantial in that they are made of polypropylene5 and have an average lifespan of 5 years. They are used in significant numbers in international commerce, given that approximately one hundred and thirty-nine thousand (139,000) non-collapsible boxes and thirty thousand (30,000) of their associated caps are currently in use in international traffic. Lastly, the subject non-collapsible boxes and caps are suitable for and capable of reuse given that these units are used approximately two to three times in a 12-month period. Based on the foregoing, the non-collapsible boxes and caps are eligible for designation as IITs; and would therefore qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1). However, when originally imported, the subject non-collapsible boxes and caps underwent normal entry process and the payment of applicable duties, and would qualify for duty-free treatment under Subheading 9803.00.50, HTSUS, not as IITs per se, but as “of foreign production and previously imported and duty paid” substantial holders. HOLDING: The subject collapsible and non-collapsible boxes and caps that have not yet formally entered the United States qualify for treatment as instruments of international trade within the meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(1). However, those collapsible and non-collapsible boxes and caps which have previously been imported, entered and for which duties were paid by Nippon should be entered under Subheading 9803.00.50, HTSUS as “Articles, previously imported.” 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 verification of the facts incorporated 5 See HQ H250334 (May 19, 2014) (CBP found that polypropylene plastic containers were substantial) and HQ H285811 (Aug. 14, 2017), (CBP found that polypropylene bins and boxes were substantial”). 10 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 articles vary from the facts stipulated to herein, or CBP ascertains discrepancies based upon a review of any other pertinent information, this decision shall not be binding on CBP as provided for in 19 C.F.R. §§ 177.2(b), 177.9(b). Sincerely, W. Richmond Beevers, Chief, Cargo Security, Carriers, and Restricted Merchandise Branch Office of Trade, Regulations & Rulings U.S. Customs and Border Protection