RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a; Harman Int’l Indus., Inc.; Steel Rack Containers, Metal Pallets

HQ H360106 September 3, 2026 OT:RR:BSTC:CCR H360106 CBC CATEGORY: Carriers Harman Int’l Indus., Inc. ATTN: Rachel Hall 30001 Cabot Dr Novi, MI 48377 VIA EMAIL: Rachell.Hall@harman.com RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a; Harman Int’l Indus., Inc.; Steel Rack Containers, Metal Pallets Dear Ms. Hall: This is in response to your April 16, 2026, request for a ruling pursuant to 19 C.F.R. § 177.2, on behalf of Harman International Industries, Inc., (“Harman”), that certain steel shipping racks qualify for treatment as Instruments of International Traffic (“IIT”), properly classified un- der subheading 9803.00.50 of the Harmonized Tariff Schedule of the United States (“HTSUS”). FACTS: The following facts are taken from your ruling request and supplements thereto. The subject items are described as “steel rack containers” and “metal pallets.” They are used to transport goods between Mexico and the United States. They are intended for repeated use, ex- clusively for international transportation, and remain owned by HARMAN/BECKER AUTO- MOTIVE throughout their five-year lifespan. They have dimensions of 48 x 45 x 53 inches. More than 66,668 are accounted for in current use. The request includes three separate descrip- tions with different internal packing, having part numbers, 4130575, 4168013, and 9100458701A, pictured below: 4130575 4168013 9100458701A ISSUE: Whether the subject steel shipping racks qualify for consideration as instruments of inter- national traffic within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). 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- 1 The four exceptions to the requirement of entry are tions as the Secretary may prescribe.”). 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 1 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). 2 reexported separately or with another container, or imported sepa- rately to be reexported with a container. (Emphasis added). Subchapter 98 of the HTSUS only applies to: 1. This subchapter covers only the following: (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. 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, 2 § 14, 67 Stat. 507, 516; see 19 U.S.C. § 1322(a). “These ‘customary’ exemptions had an estab- lished legal existence long before the Congress first recognized them in § 1322(a).” Inter-City 3 Truck Lines, Ltd. v. United States, 408 F.2d 686, 689 (Ct. Claims 1969) (Nichols, J. dissenting). 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); see 25 Fed. Reg. 2530 (Mar. 25, 1960). 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 4 So defined: of the Customs Convention on Containers.” Id. (“Convention”). 2 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). 3 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. 4 Customs Convention on Containers, 1972, 988 U.N.T.S. 43; see 34 Fed. Reg. 9798, 9800 (June 25, 1969). 3 [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 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 reload- ing; (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 equip- ment 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 5 be treated as containers. The term “accessories and equipment of the container” shall cover in particular the following devices, even if they are remova- ble: (a) equipment for controlling, modifying or maintaining the temperature inside the container; (b) small appliances, such as temperature or impact record- ers, designed to indicate or record variations in environmental conditions and impact; (c) internal partitions, pallets, shelves, supports, hooks, and 6 similar devices used for stowing goods. “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. 5 Art. 1, 338 U.N.T.S. at 104–05. 6 Annex 6, 988 U.N.T.S. at 68. 4 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. 7 533, No. 56247 (Aug. 26, 1964). The Steel Shipping Racks Turning to the subject steel shipping racks, based upon review of the submission and in- formation provided, the subject steel racks are holders that are substantial, suitable for and capa- ble of repeated use, and used in significant numbers in international traffic. They are substantial 8 in that they are made of steel and have a five-year lifespan. They are used in significant num- bers in international commerce, with more than 66,668 currently used in international traffic. They are suitable for and capable of reuse, being returned, refilled, and retained by Harman throughout their five-year lifespan. In previous determinations, CBP has ruled that certain arti- cles of similar nature, use, and construction as those presently under consideration qualify as in- struments of international traffic pursuant to 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a. See, e.g.¸ T.D. 76-203, 10 Cust. B. & Dec. 400 (July 21, 1976) (steel racks used for the transportation of lawn mower housings); HQ H266424 (Oct. 7, 2015) (“CBP has consistently ruled that certain steel racks meet the qualifications of being instruments of international traffic.”); HQ H286143 (June 20, 2017) (“CBP has repeatedly held that steel racks qualify as instruments of international traffic.”); HQ H303170 (Apr. 9, 2019) (“CBP has consistently held that steel racks of a similar type to the ones at issue qualify as instruments of international traffic.”); HQ H323497 (Mar. 15, 2022) (“CBP has consistently held that steel racks of a similar type to the ones at issue qualify as IITs.”). Based on the foregoing, the subject steel shipping racks are eligible for designation as IITs. Therefore, they qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1). Under the provisions of section 10.41a(c) of the CBP Regulations (19 C.F.R. § 10.41a(c)), an IIT will be released only after a bond has been filed on Customs Form 301, or the electronic equivalent thereof, containing the bond conditions required under section 113.66 of the CBP Regulations (19 C.F.R. § 113.66). 7 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 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 in 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. 8 See, e.g., T.D. 56278 (Oct. 1, 1964) (finding that steel containers were substantial); T.D. 66-213 (Oct. 5, 1966) (finding that steel stands for transporting aircraft engines were substantial); T.D. 70-2364, Cust. B. & Dec. 737 (Nov. 7, 1970) (finding that open-top, stackable steel frames for transporting snowmobile parts were substantial); T.D. 73-105, 7 Cust. B. & Dec. 265 (Apr. 11, 1973) (finding that open-top steel bins were substantial); HQ 113687 (Feb. 27, 1997) (“We have ruled that collapsible steel containers, racks or crates, used to import automobile parts, qualify as IIT.”); HQ H323497 (Mar. 15, 2022) (“CBP has held equipment made from steel as substantial.”); HQ H323388 (May 9, 2022) (“CBP has previously held steel is substantial.”); HQ H345809 (May 30, 2025) (same). 5 HOLDING: The subject steel shipping racks qualify for treatment as instruments of international trade within the meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(1). 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 incor- porated in the ruling letter, either directly, by reference, or by implication, is accurate and com- plete 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 6