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 > 2007 HQ Rulings > HQ H007667 - HQ H009107 > HQ H007819

Previous Ruling Next Ruling
HQ H007819




June 13, 2007

BOR-4-07:OT:RR:BSTC:CCI H007819 ALS

CATEGORY: CARRIER

Mr. Melvin S. Schwechter
LeBoeuf, Lamb, Greene & MacRae, LLP
1875 Connecticut Ave., NW, Suite 1200
Washington, D.C. 20009-5728

RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 CFR 10.41a(a)(1); 19 CFR 10.41b(d); Steel Reels

Dear Mr. Schwechter:

This is in response to your letter, dated February 28, 2007, requesting a ruling on behalf of AFL Automotive, L.P. (“AFL”), concerning whether certain steel reels qualify as instruments of international traffic under 19 U.S.C. § 1322(a) and 19 CFR 10.41a(a)(1).

FACTS:

AFL exports copper wire on steel reels from the United States to its manufacturing plants in Mexico and Honduras for fabrication into automotive wire harnesses. The copper wire is removed from the steel reels upon arrival at the manufacturing plants. The empty steel reels are then returned to the United States to have more copper wire loaded on them for shipment to the manufacturing plants. You state that the “dimensions of the reels are: 30" x 15" x 2.25".” You also state that “170 reels are used on a weekly basis” and the reels are reusable for “a period of at least ten years.”

ISSUES:

1. Whether the steel reels, described above, may be designated as instruments of international traffic pursuant to 19 U.S.C. § 1322(a) and 19 CFR 10.41a(a)(1).

2. Whether the steel reels must comply with the requirements of 19 CFR 10.41b(d).

LAW AND ANALYSIS:

Pursuant to 19 U.S.C. § 1322(a), instruments of international traffic (also referred to herein as “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. Pursuant to 19 CFR 10.41a(a)(1), the Commissioner of Customs and Border Protection (CBP) is authorized to designate as instruments of international traffic such additional articles not specifically noted in that section. Such instruments may be released without entry or payment of duty.

To qualify as an IIT within the meaning of 19 U.S.C. § 1322(a) and 19 CFR 10.41a(a)(1), an article must be used as a container or holder. The article also must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. See Harmonized Tariff Schedule of the United States Annotated subheading 9803.00.50 and CBP Ruling HQ 112303 (August 14, 1992). We have previously ruled on the qualifications of steel reels as IITs. We concluded in one case that steel reels, capable of holding iron wire for 10 round trips from the U.S. to Japan, qualified as instruments of international traffic. CBP Ruling HQ 113855 (August 14, 1997). HQ 113855 cited two other CBP rulings in which we held that bobbins designed to hold wire, yarn, thread, or similar materials, qualified as IITs. See CBP Ruling HQ 113554 (August 31, 1995) and CBP Ruling HQ 111196 (April 8, 1991). As noted in HQ 113855, reels are also “known as spools, bobbins, cops, and pins.”

Upon review of your request, we find that the subject steel reels are substantial, suitable for and capable of repeated use, and are used in significant numbers in international traffic. As noted above, we have ruled that similar articles qualify as IITs. Therefore, we find that the subject steel reels qualify as IITs pursuant to 19 U.S.C. § 1322(a).

You also request that steel reels imported from Honduras be exempted from the special marking requirements of 19 CFR 10.41b(d)(2) for serially numbered holders or containers of foreign manufacture. Based on the information you provide and the regulation text quoted in your letter, it appears that the appropriate regulation to which you refer is 19 CFR 10.41b(d)(1). Under 19 CFR 10.41b(d)(1), the following is provided:

In the case of serially numbered holders or containers of foreign manufacture, other than those provided for in paragraph (d)(2) of this section, for which free clearance under the second provision in subheading 9803.00.50, HTSUS (19 U.S.C. 1202), is claimed, the owner shall place thereon the following markings:

9803.00.50.
The district and port code numbers of the port of entry, the entry number, and the last two digits of the fiscal year of entry covering the importation of the holders and containers on which duty was paid. The name of the owner, either positioned as indicated in the example below, or elsewhere conspicuously shown on the holder or container. The serial number assigned by the owner, which shall be one of consecutive numbers and not to be duplicated....

As noted above, while referencing the provisions of (d)(1), you actually cite 19 CFR 10.41b(d)(2). That provision reads as follows:

In the case of substantial holders or containers of either U.S. or foreign manufacture, specially designed and equipped to facilitate the carriage of goods by one or more modes of transport without intermediate reloading, each having a gross mass rating of at least 18,120 kilograms, for which duty-free entry is requested under either the first or the second proviso in subheading 9803.00.50, HTSUS (19 U.S.C. 1202), is claimed, only the following clear, conspicuous and durable markings are required to be on the container:

The identity of the owner or operator of the container. The serial number assigned by the owner or operator of the container, which shall be one of consecutive numbers and shall not be duplicated.

You state that the steel reels are manufactured in Great Britain. You do not indicate if the steel reels are specifically designed and equipped to facilitate the carriage of goods by one or more modes of transport without intermediate reloading. You also do not indicate if each of the reels has a gross mass rating of at least 18,120 kilograms. If the reels are not constructed with these characteristics, then 10.41b(d)(2) does not apply. In the absense of such declarations, we will proceed accordingly.

In CBP Ruling HQ 116446 (May 9, 2005), we addressed the issue of the marking requirements under 10.41b. In that case, the ruling requester inquired as to whether metal horses must be serially numbered and marked. We stated the that “[w]e have held that the containers do not need to be marked with serial numbers or identifying numbers in order to qualify as IITs. However, the CBP regulations do provide for the serial numbering/marking of holders or containers that are IITs for purposes of CBP clearance of such articles. See 19 CFR 10.41b(d).” We note that 19 CFR 10.41b(d) does not provide for an exemption from the marking requirements set forth therein. Therefore, pursuant to the express language of 10.41b(d)(1), the subject steel reels must be marked in accordance with the provisions of that regulation.

HOLDINGS:

1. The subject steel reels that will be used to transport merchandise between the United States and at least one foreign country on a repeated basis, are hereby designated as IITs within the meaning of 19 U.S.C. § 1322(a) and pursuant to 19 CFR 10.41a(a)(1).

2. The subject steel reels must be marked in accordance with the requirements of 19 CFR 10.41b(d)(1).

Sincerely,

Glen E. Vereb
Chief

Previous Ruling Next Ruling

See also: