HQ 109665: Palletainers (wire mesh containers) as instruments of international traffic

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                       HQ 109665
                                  September 12, 1988

            BOR 7-07-CO:R:P:C  109665 BEW

            CATEGORY:  CARRIERS

            Mr. L. Dammer
            Mercedes-Benz of North American, Inc.
            One Mercedes Drive
            Post Office Box 350
            Montvale, NJ 07645-0350

            RE:  Palletainers (wire mesh containers) as instruments of
                 international traffic

            Dear Mr. Dammer:

                 This is in reference to your letter of July 21, 1988, in
            which you asked that we classify certain palletainers (wire
            mesh containers) as instruments of international traffic (ITT).

            FACTS:

                 You state that you intend to use palletainers (wire mesh
            containers) for ocean freight shipments of automotive spare
            parts from Germany to the ports of New York, Baltimore,
            Savannah, Houston, Los Angeles and Chicago.  You state that the
            palletainers are made of iron or steel and that they are
            collapsible.  You state that there will be a few thousand of
            them in service from Germany to the United States.  You state
            that they will be returned to Germany in their collapsible form
            (approximately 120) by means of 40 foot steamship containers.
            You state that the palletainer have a life expectancy of
            approximately 15 years.  They have an identifiable individual
            serial number, and contain the Mercedes star and the Number
            2032, which represents a Mercedes part number.  The
            palletainers are manufactured in West Germany, and will cost DM
            225.

            ISSUE:

                 Whether the palletainers (wire mesh containers) used for
            the transportation of automotive spare parts may be designated
            as instruments of international traffic within the meaning of
            19 U.S.C. 1322(a) and section 10.41a, Customs Regulations.














                                         - 2 -


            LAW AND ANALYSIS:

                 Section 322(a), Tariff Act of 1930, as amended (19 U.S.C.
            1322(a)), provides that "[v]ehicles and other instruments of
            international traffic, of any class specified by the Secretary
            of the Treasury, shall be granted the customary exceptions from
            the application of the customs laws to the extend and subject
            to such terms and conditions as may be prescribed in
            regulations or instructions of the Secretary of the Treasury."

                 The Customs Regulations issued under the authority of
            section 322(a) are in section 10.41a (19 CFR 10.41a).
            Paragraph (a)(1) of section 10.41a designates as instruments of
            international traffic lift vans, cargo vans, shipping tanks and
            certain other named articles and states that other articles may
            be designated as instruments of international traffic by the
            Commissioner of Customs in decisions to be published in the
            weekly Customs Bulletin.  These instruments of international
            traffic may be released without entry or the payment of duty,
            subject to the provisions of section 10.41a.

                 To qualify as an "instrument of international traffic"
            within the meaning of section 322(a), Tariff Act of 1930, as
            amended (19 U.S.C. 1322(a)), and the regulations issued
            thereunder (19 CFR 10.41a et seq.), an article must be
            substantial, suitable for and capable of repeated use, and used
            in significant numbers in international traffic.

                 We find that the palletainers under consideration may be
            used as a container or holder, that they are substantial,
            suitable for the capable of repeated use, and that they are
            used in significant numbers in international traffic.  We
            further find that the palletainers under consideration are
            similar to palletainers which were designated as instruments of
            international traffic in Treasury Decision 70-236 (steel frame
            platforms, with steel mesh sides, used to carry snowmobile
            spare parts), and similar to certain collapsible containers of
            nylon which were designated as instruments of international
            traffic in Treasury Decision 68-4 (collapsible containers of
            nylon capable of holding 2,000 pounds of zine dust or similar
            material).




















                                         - 3 -


            HOLDING:

                 The palletainers under consideration qualify for treatment
            as instruments of international traffic and may be released
            under the procedures set forth in section 10.41a, Customs
            Regulations.

                                         Sincerely,



                                         B. James Fritz
                                         Chief
                                         Carrier Rulings Branch



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