BOR-7-07-CO:R:P:C 111345 GEV
Mr. Martin Chance
President
Ramp International East Coast U.S.A., Inc.
1444 Biscayne Boulevard, Suite 220
Miami, Florida 33132
RE: Instruments of International Traffic; Auto Ramps;
19 U.S.C. 1322
Dear Mr. Chance:
This is in reference to your letter dated September 25,
1990, enclosing descriptive literature, requesting a ruling that
certain equipment your company uses constitutes instruments of
international traffic. Our ruling is set forth below.
FACTS:
Ramp International East Coast U.S.A., Inc. ("Ramp") utilizes
certain foreign-manufactured intermodal equipment specifically
designed to facilitate the carriage and shipment of multiple
automobiles in containers. These "auto ramps" are made of steel
and come in three different models. Ramp Model A enables two
small or medium size cars to be shipped together in one 20'
general container, or four cars in one 40' container. Ramp Model
B enables three large cars to be shipped together in one 40'
general container. The third model, called the Auto Modal unit,
enables four cars to be shipped together in one 40' container.
The above Models A and B currently used by "Ramp" number
1000 with the anticipated use of an additional 1-2000 in 1991.
They are being used between Los Angeles and Germany, Belgium,
Holland, Switzerland and England for the carriage of automobiles
from the United States to Europe. The Auto Modal units currently
used by "Ramp" number 500 with the anticipated use of an
additional 2000 in 1991. All of the equipment under
consideration will soon be used between Miami, San Francisco,
Charleston, S.C., and Houston and various points in Europe,
Japan, Australia and New Zealand.
- 2 -
Pursuant to a request from a former distributor of "Ramp"
Customs issued a ruling to the effect that Models A and B are
instruments of international traffic (see Ruling 109973 BEW,
dated April 7, 1989). To clarify this ruling, and at the same
time ensure that their whole product range, consisting of Ramp
Models A, B and the Auto Modal unit (the latter of which was not
considered in the aforementioned ruling), meet with Customs
approval, Ramp has requested its own ruling on this matter.
ISSUE:
Whether the steel auto ramps under consideration which are
specifically designed to facilitate the carriage of multiple
automobiles in containers are instruments of international
traffic within the meaning of 19 U.S.C. 1322(a) and section
10.41a, Customs Regulations (19 CFR 10.41a).
LAW AND ANALYSIS:
Title 19, United States Code, section 1322(a) (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 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
section 322(a) are contained in section 10.41a (19 CFR 10.41a).
Section 10.41a(a)(1) specifically designates lift vans, cargo
vans, shipping tanks, skids, pallets, caul boards, and cores for
textile fabrics as instruments of international traffic.
Section 10.41a(a)(1) also authorizes the Commissioner of
Customs to designate other items as instruments of international
traffic in decisions to be published in the weekly Customs
Bulletin. Once designated as instruments of international
traffic, these items 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 19 U.S.C. 1322(a) and the regulation
promulgated pursuant thereto (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. (See subheading
9803.00.50, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), and former Headnote 6(b)(ii), Tariff
Schedules of the United States (HTSUS), as well as Headquarters
Decisions 104766; 108084; 108658; 109665; and 109702).
- 3 -
The concept of reuse contemplated above is for commercial
shipping or transportation purposes, and not incidental or
fugitive uses. Tariff Classification Study, Sixth Supplemental
Report (May 23, 1963) at 99. See Holly Stores, Inc. v. United
States, 697 F.2d 1387 (Federal Circuit, 1982).
In Holly Stores, supra, the court determined that "reuse" in
the context of former General Headnote 6(b)(ii) "has been
consistently interpreted to mean practical, commercial reuse, not
incidental reuse." (Emphasis added). In that case, articles of
clothing were shipped into this country on wire or plastic coat
hangers. Evidence showed that the hangers were designed to be,
and were of fairly durable construction and that it would be
physically possible to reuse them. However, the court found that
only about one percent of the hangers were reused in any way at
all, and that those uses were of a noncommercial nature. The
court held that the uses of these hangers beyond shipping them
once from overseas to the United States were purely incidental,
and concluded that the hangers were "not designed for, or
capable of, reuse". Subsequent Customs rulings on this matter
have held that single use is not sufficient; reuse means more
than twice (Headquarter rulings 105567 and 108658). Furthermore,
it is our position that the burden of proof to establish reuse is
on the applicant, even though the applicant may not be the party
reusing the instrument.
Upon reviewing Ramp's request and the accompanying
documentation, we reaffirm our holding in Ruling 109973 that the
above requirements have been met with respect to Ramp Models A
and B, and so hold with respect to the Auto Modal unit.
HOLDING:
The steel auto ramps under consideration which are
specifically designed to facilitate the carriage and shipment of
multiple automobiles in containers constitute instruments of
international traffic within the meaning of 19 U.S.C. 1322(a) and
section 10.41a, Customs Regulations (19 CFR 10.41a).
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch