HQ 227120: Instruments of international traffic; 19 U.S.C. 1322; 19 CFR10.41a

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 227120
                              
                                  August 9, 1996

BOR-4-07-RR:IT:EC  227120 GOB

CATEGORY:   Carriers

Jeffrey A. Meeks, Esq.
Meeks & Sheppard
330 Madison Avenue
39th Floor
New York, N.Y. 10017

RE:  Instruments of international traffic; 19 U.S.C. 1322; 19 CFR
10.41a

Dear Mr. Meeks:

     This is in response to your letter of July 19, 1996 on
behalf of Nippodenso Company, Ltd.

FACTS:

     You request that certain items be designated as instruments
of international traffic within the meaning of 19 U.S.C. 1322 and
19 CFR 10.41a.  You describe the items as follows:

     R-5 DUNNAGE TRAY & URETHANE BAR (Part Nos. 989921 and
     989938-3020)  This is a thermo-formed tray made of high
     density polyethylene with spaces for twenty (20) starters. 
     The trays are stackable, both when loaded with starters and
     when empty.  When filled, they are stacked approximately six
     high on a pallet, with the R-6 lid described below covering
     the uppermost tray and its contents ... These trays are 1120
     mm long by 950 mm wide by 150 mm high and are extremely
     durable with an anticipated life of approximately ten (10)
     years.  Integral to the trays are the urethane bars on which
     the starters sit when placed in the trays.  There are four
     bars to a tray and the trays are never used without the
     bars.  The bars are 880 mm long by 55 mm wide by 25 mm high
     and are expected to last for several trips, at least one (1)
     year...

     R-6 DUNNAGE LID (Part No. 989921-0120)  This lid is the
     cover for the above-described starter trays.  Several trays
     (usually six) are stacked on a single pallet and then
     covered with one of these lids.  The lid is also thermo-formed from high density polyethylene. They measure 1106 mm
     long by 936 mm wide by 45 mm high and have an estimated life
     of ten (10) years...

     R-9 SLIP SHEET (Part No. 989918-0530)  These sheets of
     polypropylene are used in place of wooden pallets to help in
     the packing and transport of goods.  They measure 1080 mm
     long by 995 mm wide by 2 mm thick.  The life expectancy of
     these sheets is ten (10) years...

     TUBE WITH END CAPS (Hitachi and Toshiba)  There are two
     styles of rectangular plastic tubes made of clear vinyl
     chloride, each available in two sizes.  Each has two plastic
     end caps, and they are used to contain and transport
     electrical components while protecting the electrical leads. 
     The tubes are 300 mm by 30 mm by 10 mm and 260 mm by 30 mm
     by 10 mm.  When shipped, they are taped together, 20 to a
     layer, with 5 layers to a box (100 tubes).  These tubes are
     also expected to last up to ten (10) years...

     POLYPROPYLENE PACKAGE (Part No. 989149-0260) This item is a
     polypropylene formed tray molded to hold twenty-five (25)
     condensors or regulators in place without damage.  Four (4)
     of these trays are stacked together with a paperboard
     separator between each tray inside a corrugated cardboard
     sleeve.  While the paperboard separators and the cardboard
     sleeve are disposable, the trays are intended for repetitive
     use, having a useful life of up to ten (10) years.  In use
     these "packages" are very similar to the dunnage trays
     described above.  They measure 430 mm in length, 260 mm in
     width and 45 mm [in height].

     You have submitted photographs of each of the above-described items.

     In a letter dated August 6, 1996, you state:

     Each item is subject to an approximate cycle time of
     loading, export, import, storage in plant and re-export of
     approximately 3.5 months.  Consequently, each unit is
     imported about 4 times per year.  The flow is somewhat
     constant, with 4 import shipments per week or about 200
     shipments per year.

     You also provide the following information with respect to
the number of each item which are currently in use:

     R-5 Dunnage tray & urethane bar - 5,700 trays and 23,040
     bars in use.
     R-6 Dunnage lid - approximately 945 in use.
     R-9 Slip sheet - 9,000 in use.
     Tube with end caps (Hitachi and Toshiba) - 90,000 Hitachi
     cartridges and                50,000 Toshiba-style
                                   cartridges in use.
     Polypropylene packages - 21,000 in use.
 
ISSUE:

     Whether the subject items may be 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 108658, 109665, and 109702.

     After a review of the information submitted, we determine
that all of the subject articles meet the requirements to be
designated as instruments of international traffic.   They are
all substantial, suitable for and capable of repeated use, and
used in significant numbers in international traffic.




HOLDING:

     The following items, as described supra,  are designated as
instruments of international traffic within the meaning of 19
U.S.C. 1322(a) and 19 CFR 10.41: R-5 dunnage tray and urethane
bar (part nos. 989921 and 989938-3020); R-6 dunnage lid (part no.
989921-0120); R-9 slip sheet (part no. 989918-0530); tube with
end caps (Hitachi and Toshiba); and polypropylene package (part
no. 989149-0260).



                              Sincerely,



                              Director,
                              International Trade Compliance
Division