HQ 112188: Instruments of International Traffic; Containers; 19 U.S.C. 1322

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 112188

                         April 28, 1992

BOR-7-07-CO:R:IT:C  112188 GEV

CATEGORY:  Carriers

James D. Harris
Manager Customs Services
CP Rail
Post Office Box 6042
Station A
Montreal, Quebec, Canada H3C 3E4

RE:  Instruments of International Traffic; Containers;
     19 U.S.C. 1322

Dear Mr. Harris:

     This is in response to your facsimile transmission dated
April 3, 1992 (your file no. F-620.06-G) requesting a ruling
regarding a proposed movement of containers.  Our ruling is set
forth below.

FACTS:

     Cast Shipping Lines currently moves empty containers from
Montreal, Quebec, Canada, to locations in the midwest of the
United States for return loading export traffic through the Port
of Detroit by rail and then by vessel from the Port of Montreal.

     There is a proposal to move some of these empty containers
by truck from Montreal to Massena, New York, where they will be
loaded with aluminum ingots destined to Chicago, Illinois, for
distribution to other midwest locations.  These containers would
move from Massena to Montreal by truck and then be railed to
Chicago for further distribution by truck to various consignees.

     The empty containers would then be used for loading export
traffic from various U.S. cities for export through the Port of
Detroit.

ISSUE:

     Whether the proposed movement of containers as described
above constitutes their use as instruments of international
traffic in compliance with section 10.41a(f), Customs
Regulations.
                              - 2 -

LAW AND ANALYSIS:

     Section 141.4, Customs Regulations (19 CFR 141.4), provides
that entry as required by title 19, United States Code, section
1484(a) (19 U.S.C. 1484(a)), shall be made of every importation
whether free or dutiable and regardless of value, except for
intangibles and articles specifically exempted by law or
regulations from the requirements for entry.  Since the
containers in question are not within the definition of
intangibles as shown in General Note 4, Harmonized Tariff
Schedule of the United States Annotated (HTSUSA; 19 U.S.C. 1202,
as amended), they are subject to entry and payment of any
applicable duty if not specifically exempted by law and
regulations.

     Instruments of international traffic may be entered without
entry and payment of duty under the provisions of 19 U.S.C. 1322
which provides in pertinent part that:

     Vehicles and other instruments of international traffic, of
     any class specified by the Secretary of the Treasury, 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 or instructions of the
     Secretary of the Treasury.  The authority delegated to the
     Secretary by this subsection shall not extend to
     communications satellites and components and parts thereof.

     Regulations have been promulgated by Customs to administer
1322, and they do provide some latitude in the use of
designated instruments of international traffic.  Section
10.41a(f), Customs Regulations (19 CFR 10.41a(f)), provides that
the following are permitted:

     1.  The use of an IIT container at intervening points while
     it is in use between its port of arrival and the destination
     point for its imported cargo.

     2.  The use of an IIT container at intervening points
     between the point of destination for its imported cargo and
     a point where export cargo is to be loaded, or from there to
     its departure port.

     3.  The use of an IIT container at intervening points, which
     arrived in the U.S. empty and is being taken to the point
     where export cargo is to be loaded or from there to its port
     of departure from the U.S.

     All three of these uses are allowed only on condition that
they be reasonably direct and incidental to the efficient and
economical utilization of the IIT container in the course of its
use in international traffic.
                              - 3 -

     Upon reviewing the proposal under consideration, we note
that once loaded in Massena and transported to Chicago the
containers would then be subject to "distribution to other
midwest locations."  (see also the reference to "various
consignees")  In addition, the itinerary also includes the empty
containers loading export cargo from "various U.S. cities."  In
view of this lack of specificity as to the route of these
containers once in the U.S. we are unable to conclude that their
use is in fact a valid use in international traffic.
Accordingly, in the absence of evidence to the contrary it is our
position that the proposed movement of the subject containers is
not in compliance with 19 CFR 10.41a(f).

HOLDING:

     The proposed movement of containers as described above does
not constitute their use as instruments of international traffic
and is therefore in violation of 19 CFR 10.41a(f).

                                   Sincerely,




                                   B. James Fritz
                                   Chief
                                   Carrier Rulings Branch