Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. §§ 10.41a(a)(1) 10.41a(a)(2); Aircraft Pallets and Repair Components.

H357192 June 8, 2026 OT:RR:BSTC:CCR H357192 JLE CATEGORY: Carriers Neil Letham Unilode Aviation Solutions Switzerland AG Farman-Strasse 11 Zurich 8152 Switzerland RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. §§ 10.41a(a)(1) 10.41a(a)(2); Aircraft Pallets and Repair Components. Dear Mr. Letham: This is in response to your November 26, 2025, ruling request on behalf of Unilode Aviation Solutions Switzerland AG. In your request you inquire whether certain aircraft pallets and their repair components qualify as “instruments of international traffic” or repair components thereto within the meaning of 19 U.S.C. § 1322(a). Our ruling is set forth below. Facts The following facts are taken from your ruling request and supplements thereto. The subject aircraft pallets are known as Unit Loading Devices (“ULD”) and are used by airlines to load and manage cargo within cargo or passenger aircraft. The subject ULDs are manufactured in Germany and are made from aluminum. Each subject item can be fitted with a digital tracker. The subject ULDs have a lifespan of ten to fifteen years and are used repeatedly each year. Currently tens-of-thousands units are used in international traffic annually. The subject repair components mentioned are varied; they include seat tracks, fasteners, rivets, and sheet aluminum. You state that maintenance can only be carried out by suitable regulatorily-approved repair centers using repair components from the original equipment supplier. 2 Issues 1. Whether the subject ULDs qualify for consideration as instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). 2. Whether the subject repair components for the ULDs qualify for duty-free entry under 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 (“IIT”). 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 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 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). 3 relevant CBP regulations implementing that statute is 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 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 Regarding repair components, 19 C.F.R. §10.41a(1)(2) states: 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. 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. 4 Aircraft Unit Load Devices - Pallets 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). The items at issue in the instant matter are purported to be pallets. Pallets are defined by Merriam Webster as “a portable platform for handling, storing, or moving materials and packages (as in warehouses, factories, or vehicles).”3 It is noteworthy that we recently determined that similar aircraft pallet Unit Loading Devices also qualified as IIT. See HQ H348097 (Jul. 2, 2025). CBP has found IITs made from aluminum substantial. See HQ 116573 (Dec. 19, 2005) (finding aluminum carrying cases with a lifespan of three years and capable of reuse substantial); see also HQ H044815 (Dec. 18, 2008) (classifying a shipping assembly system consisting of aluminum boxes, plastic isotope boxes, polypropylene beams, and plastic pallets, in which pipework and centrifuge parts for machines used in the process of enriching uranium were shipped, as IITs). Based upon review of the submission and information provided, the subject pallets are containers that are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. The subject ULDs are substantial as they are constructed from aluminum and have a lifespan of ten to fifteen years. The subject items are suitable for and capable of repeated use as they are used multiple times per year over the course of their lifespan. Finally, the subject ULDs are used in significant numbers as there are tens-of-thousands units in circulation. Thus, the subject pallets qualify as IIT per se. Accordingly, the pallets in the present case may be released without payment of duty or entry. Repair Components As discussed above, the subject ULDs are considered IITs. If the Center director is satisfied that the subject repair components have the declared intention at the time of importation the repair components would be eligible for duty-free treatment pursuant to the provisions of 19 U.S.C. § 1322, subheading 9803.00.50, HTSUSA, and 19 C.F.R. § 10.41a. We note that entry of the repair components would be required under 19 C.F.R. § 10.41a(a)(2). Holdings The subject Unit Loading Devices qualify for treatment as instruments of international trade within the meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(1). The subject repair components, with the Center director’s approval, qualify for treatment as instruments of international trade within the meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(2). 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 3 Pallet, MERRIAM-WEBSTER.COM, https://www.merriam-webster.com/dictionary/pallet (last visited May 19, 2025). 5 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 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 yours, W. Richmond Beevers, Chief Cargo Security, Carriers, and Restricted Merchandise Branch Office of Trade, Regulations and Rulings U.S. Customs and Border Protection