HQ 113135: Instruments of International Traffic; 19 U.S.C. 1322; 19 CFR 10.41a; Containers; Refrigerators; Parts

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 113135      

                            June 21, 1994

BOR-4-07-CO:R:IT:C  113135 GOB

CATEGORY:  Carriers

Mary Elizabeth Strom
Radix Group International, Inc.
5510 West 102nd Street
Los Angeles, California 90045

RE:  Instruments of International Traffic; 19 U.S.C. 1322; 19 CFR
     10.41a; Containers; Refrigerators; Parts

Dear Ms. Strom:

     This is in response to your letter dated May 10, 1994 on
behalf of Mitsubishi Heavy Industries America Inc. ("Mitsubishi"). 

FACTS:

     Certain containers used by Mitsubishi have been designated as
instruments of international traffic.  Prior to importation of the
containers, refrigeration units are permanently installed within
the containers.  You request a ruling with respect to spare parts
which Mitsubishi is importing for the repair of the refrigeration
units.  You request that, pursuant to 19 CFR 10.41, these parts be
entitled to duty-free treatment and excepted from formal entry
requirements as parts and accessories for containers which have
been designated as instruments of international traffic under
subheading 9803.0050, Harmonized Tariff Schedule of the United
States.

ISSUE:

     Whether the parts to be imported for the repair of the
refrigeration units within the containers are entitled to duty-
free treatment and excepted from formal entry requirements.

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   

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     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 of
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.

      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.

     19 CFR 10.41a(a)(2) states:

     Repair components, accessories, and equipment for any
     container of foreign production which is an instrument of
     international traffic may be entered or withdrawn from
     warehouse for consumption without the deposit of duty if the
     person making the entry or withdrawal from warehouse files a
     declaration that the repair component was imported to be used
     in the repair of a container of foreign production which is
an   instrument of international traffic, or that the accessory or
     equipment is for a container of foreign production which is
an   instrument of international traffic.  The district director
     must be satisfied that the importer of the repair component,
     accessory, or equipment had the declared intention at the time
     of importation.

     After a consideration of the facts of this case, we make the
following determinations.  

     The refrigeration units are an integral part of the containers
which have been designated as instruments of international traffic. 
The parts which Mitsubishi proposes to import fall within the scope
of 19 CFR 10.41a(a)(2).  Accordingly, the parts may be entered
duty-free pursuant to 19 CFR 10.41a(a)(2).  However, entry of the
parts must be made by Mitsubishi.  





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HOLDING:

     The parts may be entered duty-free provided Mitsubishi files
the declaration required pursuant to 19 CFR 10.41a(a)(2). 
Mitsubishi is required to make entry of the parts.



                              Sincerely,



                              Arthur P. Schifflin
                              Chief
                              Carrier Rulings Branch