BOR 7-07-CO:R:P:C 109634 BEW

Mr. James Burghart
President
A. Burghart Shipping Co., Inc.
Newark International Plaza
Newark, New Jersey 07114

RE: Beer kegs as instruments of international traffic (IIT)

Dear Mr. Burghart:

This is in reference to your telex of May 11, 1988, and your memorandum June 27, 1988, in which you ask that we classify certain beer kegs as instruments of international traffic (IIT).

FACTS:

The beer kegs are of substantial stainless steel construction and are capable of repeated use. They will be used to transport beer from the Netherlands to the United States moving under an IIT bond. After emptying, the kegs will be exported to Heineken Brewery for cleaning and reuse. The ports of entry will be New York/New Jersey.

The kegs will have their own unique serial numbers, and will hold 13.2 and 15.5 gallons each. There will be a total of 145,112 of the smaller kegs and 3,249 of the larger kegs.

ISSUE:

Whether the beer kegs may be brought into the United States as instruments of international traffic.

LAW AND ANALYSIS

Section 322(a), Tariff Act of 1930, as amended (19 U.S.C. 1322(a)), provides that "[v]ehicles and other instruments of international traffic, of any class specified by the Secretary of the Treasury, shall be granted the customary exceptions from the application of the customs laws to the extent and subject

to such terms and conditions as may be prescribed in regulations or instructions of the Secretary of the Treasury."

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The Customs Regulations issued under the authority of section 322(a) are in section 10.41a (19 CFR 10.41a). Paragraph (a)(1) of section 10.41a designates as instruments of international traffic lift vans, cargo vans, shipping tanks and certain other named articles and states that other articles may be designated as instruments of international traffic by the Commissioner of Customs in decisions to be published in the weekly Customs Bulletin. These instruments of international traffic may be released without entry or the payment of duty, subject to the provisions of section 10.41a

To qualify as an "instrument of international traffic" within the meaning of section 322(a), Tariff Act of 1930, as amended (19 U.S.C. 1322(a)), and the regulations issued thereunder (19 CFR 10.41a et seq.), 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.

We find that the beer kegs under consideration may be used as a container or holder, that they are substantial, suitable for and capable of repeated use, and that they are used in significant numbers in international traffic. We further find that the beer kegs under consideration are similar to beer kegs which were designated as instruments of international traffic in Treasury Decision 66-15 (stainless steel half barrels and quarter barrel beer kegs, imported containing beer, used primarily after importation for onward transportation and for dispensing beer, and not for storing or aging the beer), and are similar to certain beer kegs which were designated as instruments of international traffic in Treasury Decision 68-81 (stainless steel beers kegs of a capacity of 9.2 gallons more or less, sometimes referred to as 1/3 barrel kegs of the same type and used in the same way as described in 66-15).

HOLDING:

The beer kegs under consideration qualify for treatment as instruments of international traffic and may be released under the procedures set forth in section 10.41a, Customs Regulations.

Sincerely,

B. James Fritz
Chief
Carrier Rulings Branch