United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2006 HQ Rulings > HQ 115969 - HQ 116609 > HQ 116597

Previous Ruling Next Ruling
HQ 116597




January 27, 2006

BOR-4-07-RR:BSTC:CCI 116597 IDL

CATEGORY: CARRIER

Bruce E. Goodwin
Import Management/Licensed Customs Broker Yusen Air & Sea Service (USA), Inc. / Boston Branch 230 McClellan Highway
East Boston, Massachusetts 02128

RE: Instruments of International Traffic; Accessories; Plastic Pallets; Plastic "Danpla" Boxes; Plastic Trays; Subheading 9803.00.50, HTSUSA; 19 U.S.C. § 1322; 19 CFR § 10.41a

Dear Mr. Goodwin:

This is in response to your letter to the Director, National Commodity Specialist Division, U.S. Customs and Border Protection (CBP), dated December 20, 2005, on behalf of Pixley Richards, Inc. The letter, which has been forwarded to this office for our review, requests a binding ruling on designation of "danpla" boxes (plastic corrugated boxes), plastic pallets, and plastic trays as instruments of international traffic. Our ruling on this matter is set forth below.

FACTS:

Pixley Richards, Inc. ("Pixley"), of Plymouth, Massachusetts proposes using danpla boxes, plastic pallets, and plastic trays (collectively, "subject articles") to transport air meters and air meter tubes (collectively, "merchandise") to manufacturers in Japan. Pixley loads the merchandise onto the plastic trays, and then places the loaded plastic trays into the danpla boxes before transporting them to Japan. The manufacturers in Japan later return the subject articles to Pixley empty for reloading.

Pixley uses two types of danpla boxes to transport the merchandise. The danpla boxes are made in Japan, measure approximately 28" x 17" x 13", and have an estimated serviceable life of twenty to twenty-five shipments. The boxes are designed to correspond with two types of trays that house the merchandise. Depending on the type of tray used, each tray holds either up to 54 air meters or up to 15 air meter tubes. Each danpla box can hold a total of three trays.

You have stated that all of the articles discussed are substantial, suitable for and capable of repeated use, are used as containers or holders, and are used in significant numbers in international traffic. Pixley is due to receive at least 5,556 boxes for the shipment of air meter tubes and 3,704 boxes for the shipment of air meters. For each box received, Pixley is due to receive three corresponding trays. You have provided images and technical specifications for the danpla boxes and plastic trays.

ISSUES:

(1) Whether plastic pallets and the danpla boxes described above may be designated as instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a, CBP regulations (19 CFR 10.41a)?

(2) Whether the plastic trays described above may be entered duty-free as accessories of instruments of international traffic within the meaning of 19 CFR

LAW AND ANALYSIS:

Issue (1)

Title 19, United States Code, section 1322(a) (19 U.S.C. 1322(a)), provides in pertinent part that "[v]ehicles and other instruments of international traffic...shall be excepted from the application of the customs laws to such extent and subject to such terms and conditions as may be prescribed in regulations...." The CBP regulations issued under the authority of section 1322(a) are contained in section 10.41a (19 CFR 10.41a). Section 10.41a(a)(1) specifically designates lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics as instruments of international traffic. (emphasis added)

Accordingly, plastic pallets fall under the designation of instruments of international traffic (IIT), as listed in section 10.41a(a)(1).

Section 10.41a(a)(1) also authorizes the Commissioner of CBP to designate other items as instruments of international traffic. Once designated as instruments of international traffic, these items may be released without entry or the payment of duty, subject to the provisions of section 10.41a.

To qualify as an IIT within the meaning of 19 U.S.C. section 1322(a) and the regulation promulgated pursuant thereto (19 CFR 10.41 et seq.), an article must be used as a container or holder. The article must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. (See, subheading 9803.00.50, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), and former Headnote 6(b)(ii), Tariff Schedule of the United States (TSUS), as well as Headquarters Decisions 104766; 108084; 108658; 109665; and 109702).

The concept of reuse contemplated above is for commercial shipping or transportation purposes, and not incidental or fugitive uses. Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at 99. See Holly Stores, Inc. v. United States, 697 F.2d 1387 (Federal Circuit, 1982).

In HQ 116045 (October 23, 2003), CBP designated corrugated cardboard boxes used to ship etched aluminum capacitor foil as IITs. In HQ 115033 (May 30, 2000), CBP held that hard plastic cases used to ship integrated circuit wafers qualified as IITs. In HQ 114506 (October 29, 1998), CBP determined that containers made of plastic, known as totes, that were used to ship various small automobile replacement parts from Japan to the United States met the requirements necessary for designation as IITs. In HQ 112534 (January 25, 1993), CBP found that reusable plastic boxes designed to transport automotive strut components qualified as IITs.

In the instant case, we find that, based on the information provided, the danpla boxes are used to contain or hold air meters and air meter tubes during transportation from the United States; they are substantial, suitable for and capable of repeated use; and they are used in significant numbers in international traffic. Accordingly, those articles meet the requisite criteria to qualify as IITs pursuant to section 1322(a).

Issue (2)

With regard to the issue of the plastic trays qualifying as accessories of IITs, paragraph (a)(2) of section 10.41a (19 CFR 10.41a(a)(2)) provides the following:

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 entry or withdrawal from warehouse files a declaration ...that the accessory or equipment is for a container of foreign production which is an instrument of international traffic. The port director must be satisfied that the importer of the repair component, accessory or equipment had the declared intention at the time of importation. (emphasis added)

We find that the information that you have provided indicates that the plastic trays are designed for use with the danpla boxes, which we have designated as IITs, and serve as accessories to them. Therefore, based on such information, we find that the plastic trays are accessories of instruments of international traffic of foreign production, and are eligible for duty-free treatment pursuant to the provisions of 19 U.S.C. § 1322, subheading 9803.00.50, HTSUSA, and 19 CFR § 10.41a. We note that entry of the plastic trays is required under 19 CFR § 10.41a(a)(2). (See also ruling letter 114446 (October 20, 1998)).

HOLDINGS:

(1) The plastic pallets and the danpla boxes described above may be designated as instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a.

(2) The plastic trays described above may be entered duty-free as accessories of instruments of international traffic within the meaning of 19 CFR § 10.41a(a)(2).

Sincerely,

Glen E. Vereb
Chief

Previous Ruling Next Ruling

See also: