HQ 112969: Instruments of International Traffic; Plastic Shipping Cassettes; 19 U.S.C. 1322; 19 CFR 10.41a.Dear Mr. Hertzberg:

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 112969

                           December 20, 1993                      
 
BOR-7-07-CO-R-IT-C  112969 GOB          
                                        
                                        
                                             

CATEGORY:  Carriers

Michael A. Hertzberg, Esq.
Howrey & Simon
1299 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2402

RE:  Instruments of International Traffic; Plastic Shipping
     Cassettes; 19 U.S.C. 1322; 19 CFR 10.41a.
Dear Mr. Hertzberg:

     This is in response to your letter dated December 14, 1993,
which requested that certain plastic shipping cassettes be
designated as instruments of international traffic within the
meaning of 19 CFR 10.41a.

FACTS:

     HMT Technology Corporation uses plastic shipping cassettes to
transport aluminum substrates from Japan to the United States. 
The shipping cassettes are semi-rectangular mini-containers of
durable plastic which are approximately eight and one half inches
long, five inches wide, and five inches high.  Each cassette is
comprised of a top, a bottom, and an insert.  The cassettes are
used to transport aluminum substrates with nickel plating, which
have a very fine, magnetic surface and which are very fragile. 
The insert of the cassette holds the substrates in order to prevent
bending, denting, or other damage.  The number of cassettes which
arrive with each shipment ranges from 5,000 to 150,000.  After the
substrates are processed, the cassettes are shipped to a warehouse
and accumulated in a shipping container.  Once a container is
filled, it is shipped to Japan, where the cassettes are reused to
transport substrates to the United States.  Each cassette is
identified by a particular case number.  The average life of a
cassette is estimated at approximately eight to ten shipments,
although it may be longer. 

ISSUE:

     Whether plastic shipping cassettes used to transport aluminum
substrates from Japan to the United States may be 

                              - 2 -

designated as instruments of international traffic within the
meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a. 

LAW AND ANALYSIS:

     19 U.S.C. 1322(a) states in part:

     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 Customs Regulations issued under the authority of 19
U.S.C. 1322 are contained in 19 CFR 10.41a.  19 CFR 10.41a(a)(1)
designates lift vans, cargo vans, shipping tanks, skids, pallets,
caul boards, and cores for textile fabrics as instruments for
international traffic.

     19 CFR 10.41a(a)(1) also authorizes the Commissioner of
Customs to designate as instruments of international traffic such
additional articles or classes of articles as he shall find should
be so designated.  Instruments so designated may be released
without entry or the payment of duty, subject to the provisions of
19 CFR 10.41a.  Instruments so designated are also stated to be
duty-free in subheading 9803.00.50, Harmonized Tariff Schedule of
the United States.

      To qualify as an instrument of international traffic within
the meaning of 19 U.S.C. 1322(a) and 19 CFR 10.41a, 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 Headquarters decisions
108084, 108658, 109665, and 109702.

     The concept of reuse pertains to commercial shipping or
transportation purposes, and not incidental or fugitive uses. 
Tariff Classification Study, Sixth Supplemental Report (May 23,
1963) at p. 99.  See Holly Stores, Inc. v. United States, 697 F.
2d 1387 (Federal Circuit, 1982).  In Holly Stores, the court
determined that reuse "has been consistently interpreted to mean
practical, commercial reuse, not incidental reuse."

     After a review of the information submitted, we determine that
the plastic shipping cassettes meet the requirements to be
designated as instruments of international traffic.

     This result is consistent with numerous previous decisions,
including Treasury Decisions 68-56, 74-281, and 75-265 and Ruling
109702.


                              - 3 -

HOLDING:

     The subject plastic shipping cassettes are designated as
instruments of international traffic within the meaning of 19
U.S.C. 1322(a) and 19 CFR 10.41a.



                              Sincerely,



                              Arthur P. Schifflin
                              Chief