Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a; Dover Chemical; ISO tank containers

H356250 June 5, 2026 OT:RR:BSTC:CCR H356250 CBC CATEGORY: Carriers Maria Da Rocha D&D Customhouse Brokerage, Inc. 701 Newark Avenue, Suite LL1 Elizabeth, NJ 07208 VIA EMAIL: dndchb@optimum.net RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a; Dover Chemical; ISO tank containers Dear Ms. Da Rocha: This is in response to your December 3, 2025, request for a ruling pursuant to 19 C.F.R. § 177.2, on behalf of your client Dover Chemical, of Ohio, that steel tanks used to ship dibasic es-ter from Korea to the Port of New York and New Jersey qualify for treatment as an Instruments of International Traffic (“IIT”), properly classified under subheading 9803.00.50 of the Harmo-nized Tariff Schedule of the United States (“HTSUS”). FACTS: The following facts are from your ruling request and supplements thereto. The intent is: [T]o import the chemical in a shipper owned iso-tank and also in steel drums. The importer will rent the ISO-tank from the shipper. Once the chemical is emptied from the ISO-tank it will then be re-turned to the tank owner and they in turn will export it back over-seas to be re-used. The steel drums will be imported and sold to their customer in the U.S. The empty drum is not returned to the importer.1 1 Maria Da Rocha, RE: RULING REQUEST FOR ISOTANKS AND STEEL DRUMS OF DIBASIC ESTER UNDER INSTRUMENTS OF INTERNATIONATION TRAFFIC (Dec. 3, 2025). 2 For context: ISO tanks are shipping receptacles that can be filled with liquid: An ISO tank is a tank container built to the standards promulgated by the International Organization for Standards. They are designed to carry liquids in bulk, both hazardous and non-hazardous. ISO tanks are held within ISO frames, which make them suitable for transport on cargo vessels alongside standardized shipping contain-ers.2 Each ISO tank is rated with an International Maritime Dangerous Goods Code. The most com-mon, “T11,” are approximately 24,000 liters, made of stainless steel, and have about a 20-year service life.3 The global market for ISO tanks is estimated in billions of dollars.4 LAW AND ANALYSIS: Instruments of International Traffic “All merchandise imported into the United States is required to be entered, unless specifi-cally excepted.” 19 C.F.R. § 141.4(a); see 19 U.S.C. § 1484(c) (“The Customs Service may per-mit the entry and release of merchandise from customs custody in accordance with such regula-tions as the Secretary may prescribe.”).5 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 9803.00.50, 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 re-turned 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 instru-ments 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 ac-cessories and equipment are imported with a container to be reex-ported separately or with another container, or imported separately to be reexported with a container. 2 Falcone Global Solutions, LLC v. Forbo Flooring, No. 1:19-CV-3423-MHC, 2020 U.S. Dist. LEXIS 256384, *1 n.2 (N.D. Ga. July 15, 2020). 3 Container Self-Storage & Traders Association, Tanks (2026), containa.org/resources/tanks/. 4 The Business Research Company, ISO Tank Container Market Report 2026 (2026), thebusinessresearchcom-pany.com/report/iso-tank-container-global-market-report. 5 Customs revenue functions have been delegated to the Secretary of Homeland Security by the Secretary of Treas-ury, with exceptions herein not applicable, under the authority of the Homeland Security Act of 2002, Pub. L. 107-296, §§ 401–19, 116 Stat. 2135, 2177–82; see Treas. Dep’t Order 100-16 (May 15, 2003). 3 (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: (1) Imported empty and not within the purview of a provi-sion which specifically exempts them from duty; or (2) 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. U.S. Note 1 et seq., Subchapter 98-III, HTSUS. Section 322(a) of the Tariff Act of 1930, added by the Customs Simplification Act of 1953, codified the “customary exemptions from the application of the customs laws” for “instru-ments of international traffic to such extent and subject to such terms and conditions as may be prescribed in regulations or instructions of the Secretary of the Treasury.” Pub. L. No. 243-397, § 14, 67 Stat. 507, 516; see 19 U.S.C. § 1322(a).6 “These ‘customary’ exemptions had an estab-lished legal existence long before the Congress first recognized them in § 1322(a).” Inter-City Truck Lines, Ltd. v. United States, 408 F.2d 686, 689 (Ct. Claims 1969) (Nichols, J. dissenting).7 As empowered by Section 322(a), the Secretary has delegated authorization to CBP “to designate as instruments of international traffic, in decisions to be published in the weekly Cus-toms Bulletin, such additional articles or classes of articles as he shall find should be so desig-nated.” 19 C.F.R. § 10.41a(a). 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 [t]hereby designated as “instruments of international traffic” within the meaning of section 322(a). In so designating, “‘instruments of international traffic’ 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.” Id.8 (“Convention”). So defined: [T]he term “container” shall mean an article of transport equip-ment (lift-van, movable tank or other similar structure): (i) fully or partially enclosed to constitute a compartment in-tended for containing goods; 6 While “instruments of international traffic” include “containers” and “accessories,” they are subject to entry once “diverted into domestic use.” Sea-Land Serv. v. United States, 920 F.2d 922, 923 (Fed. Cir. 1990); 19 C.F.R. § 10.41a(d). 7 Section 127 of the Trade and Tariff Act of 1984, Implementation of the customs convention on containers, 1972, removed the qualification that the “exemption” in Section 322(a) was “traditional,” and revised duty-free treatment of “accessories” in the tariff schedules. Pub. L. No. 98-573, 98 Stat. 2948, 2959. 8 Customs Convention on Containers, 1972, 988 U.N.T.S. 43. 4 (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 trans-ferred 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 equip-ment of the container, appropriate for the type concerned, pro-vided that such accessories and equipment are carried with the container. The term “container” shall not include vehicles, ac-cessories or spare parts of vehicles, or packaging. Demountable bodies, are to be treated as containers.9 The term “accessories and equipment of the container” shall cover in particular the following devices, even if they are removable: (a) equipment for 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 condi-tions and impact; (c) internal partitions, pallets, shelves, supports, hooks, and similar devices used for stowing goods.10 “The Convention reflects a national policy to remove impediments to the use of contain-ers as instruments of international traffic.” Japan Line, Ltd. v. County of Los Angeles, 441 U.S. 434, 453 (1979). The “consistent practice” “of the other signatory nations” “is persuasive evi-dence of the Conventions’ meaning.” Itel Containers Int’l Corp. v. Huddleston, 507 U.S. 60, 84 (1993) (Blackmun, J. dissenting). “Such instruments may be released without entry or the pay-ment of duty, subject to the provisions of this section.” 19 C.F.R. § 10.41a(a)(1). To qualify for entry-free and duty-free treatment as IITs under the aforementioned statu-tory 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) suita-ble 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).11 9 Art. 1, 338 U.N.T.S. at 104–05. 10 Annex 6, 988 U.N.T.S. at 68. 11 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 5 The ISO Tank Based upon review of the submission and information provided, the ISO tanks are sub-stantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. They are also fully enclosed, specifically designed for intermodal transit, have an inter-nal volume of one cubic meter or more, and otherwise constitute “containers,” as defined by the Convention. In previous determinations, CBP has ruled that certain articles of similar nature, use and construction as those presently under consideration qualify as instruments of international traffic pursuant to 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a. First, they are “shipping tanks” and thus of a class of goods already designated as IITs by 19 C.F.R. § 10.41a(a). Specifically, sec-ond: It has been established to the satisfaction of the U.S. Customs Ser-vice that stainless steel tanks with a capacity of 5290 U.S. gallons, 20 feet long, 8 feet wide, and 8 feet high, in a 20-foot ISO frame, and used for the transportation of liquid chemicals, are substantial, suitable for and capable of repeated use, and are used in significant numbers in international traffic. T.D. 76-172, 10 Cust. B. & Dec. 304 (June 11, 1976). Although the ISO tank is to be leased for a period after importation, “[s]uch use in dis-pensing [dibasic ester] is considered to be incidental to the use for transportation purposes.” T.D. 66-15 (Jan. 19, 1966). This is true even if when it so arrives it is new and the subject of a sale to a company which will then lease it to others for use in inter-national traffic, provided that use includes an exportation planned at or before the time of importation. T.D. 70-101(2), 4 Cust. B. & Dec. 210 (March 18, 1970). Pursuant to subsection (g) of our regu-lations at 19 C.F.R. § 10.41a: [A] container (as defined in Article 1 of the Customs Convention on Containers) that is designated as an instrument of international traffic is deemed to remain in international traffic provided that the container exits the United States within 365 days of the date on which it was admitted under this section. . . . An exit from the Schedule of the United States (1963) (TSUS), the predecessor provision to 9803.00.50, HTSUS. Likewise, the crite-rion that an article be “suitable for and capable of repeated use” is found in Schedule 8, Item 808.00, TSUS, Head-note 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 re-ceive duty-free treatment thereunder, nevertheless, “reuse” is still required, pursuant to CBP decisions, for an article to be considered an instrument of international traffic. 6 United States in this context means a movement across the border of the United States into a foreign country where either: (i) All merchandise is unladen from the container. (ii) Merchandise is laden aboard the container (if the container is empty). 19 C.F.R. § 10.41a(g). This provision was added in 1997 to “greatly simplify the treatment of containers . . . regardless of the fact that the containers may engage in point-to-point local traffic within the United States,” 61 Fed. Reg. 51849 (1996), “inasmuch as § 10.41a(g) focuses solely on the dates of a container’s admission to, and subsequent exit from, the U.S.” T.D. 97-69, 31 Cust. B. & Dec. No. 205 (June 25, 1997) (responding to comments “on behalf of various con-tainer lessors”). Based on the foregoing, the ISO tank is designated as an IIT; therefore, it qualifies for en-try-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1). Please note that under the provisions of section 10.41a(c) of the Customs Regulations (19 C.F.R. § 10.41a(c)), an IIT will be released only after a bond has been filed on Customs Form 301 containing the bond conditions required under section 113.66 of the Customs Regulations (19 C.F.R. § 113.66). Steel Drums While CBP has designated steel barrels for transporting and dispensing liquids as instru-ments of international traffic, e.g., T.D. 66-15, you indicate that the steel drums are sold to the domestic customer. “We must look at how the device is used at the time of entry, not the inten-tion of future use.” HQ H348345 (July 17, 2025). If the “company which purchased the con-tainer brings it in to await an eventual use in international traffic at some future time, the con-tainer will not be released as an ‘instrument of international traffic’ upon its arrival.” T.D. 70-101(2). Due to the fact the drums are entered into the U.S. as merchandise they do not qualify for entry-free and duty-free treatment as IIT equipment pursuant to 19 C.F.R. § 10.41a(a)(3), even though they have potential use as IIT. Therefore, the devices should undergo formal entry process, classification under the HTSUS, and payment of applicable duties. HOLDING: The ISO tank qualifies for treatment as instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). With regard to the steel drums, the facts of the proposed importation indicate that the drums are sold to the customer in the U.S. and are not returned to the importer. Because they are not reused, the steel drums do not qualify for treatment as instruments of international trade within the meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(3) under the circumstances of this transaction. However, the steel drums that are sold to domestic customers as merchandise may qualify as IIT in some future use. 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 7 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 Office of Trade, Regulations & Rulings U.S. Customs and Border Protection