HQ 113254: Instruments of international traffic; 19 U.S.C. 1322; 19 CFR 10.41a; Steel basketsDear Mr. Conyers:

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 113254

                           October 24, 1994
                                                                 
BOR-4-07-CO-R-IT-C  113254 GOB          
                                        
CATEGORY:  Carriers

Gregory Conyers
Assistant Import Manager
Sumitrans Corporation
900 Fourth Avenue
Suite 1510
Seattle, Washington 98164     

RE:  Instruments of international traffic; 19 U.S.C. 1322; 19 CFR
     10.41a; Steel baskets
Dear Mr. Conyers:          

     This is in response to your letter dated October 12, 1994 on
behalf of Daikin Clutch Corporation.

FACTS:

     You request that certain steel baskets be designated as
instruments of international traffic within the meaning of 19 CFR
10.41a.

     You state:

     The baskets are constructed of a steel bar mesh with each
     basket measuring L 100 cm x W 80 cm x H 73 cm
     (39.4"x31.5"x28.7").  The diameter of the steel bars that
     comprise the basket is 6 mm.  The baskets are open on top,
     and the floor is also constructed of the steel bar mesh.    
The feet at the bottom of the baskets are made suitable for
     stacking -- usually four high.  The capacity of each basket
     will be approximately 1,500 kgs or 3,307 lbs.  The life-span
     of each basket is expected to be three years.

     The baskets will be used within 20 foot ocean containers to
     transport clutch parts among the countries of Japan,   
England, United States, India, South Korea, and Thailand.   There
will be 3,780 baskets in circulation.

ISSUE:

     Whether the subject steel baskets may be designated as
instruments of international traffic within the meaning of 19
U.S.C. 1322(a) and 19 CFR 10.41a. 
                              - 2 -

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.

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

HOLDING:

     The subject steel baskets 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