BOR-4-07-RR-IT-EC 113999 GOB
Chester R. Krayton
Customs Trade Consultants
P.O. Box 626
Manalapan, New Jersey 07726
RE: Instruments of international traffic; 19 U.S.C. 1322; 19 CFR
10.41a; Plastic spacers
Dear Mr. Krayton:
This is in response to your letter of June 18, 1997 on
behalf of Dana Corporation.
FACTS:
You request that certain plastic spacers be designated as
instruments of international traffic within the meaning of 19 CFR
10.41a.
Your letter states as follows, in pertinent part:
Our client, Dana Corporation, has been notified that
its Canadian supplier will replace the wooden spacers,
which are described in ruling No. HQ113718, with
plastic spacers. The plastic spacer will be used to
separate imported axle housings from each other and to
hold them in place during shipment. The dimensions of
a plastic spacer are 3-7/8"x5"x52". The cost for each
spacer is $10.00. Each skid holding imported axle
housings will have between 12 to 16 spacers. The
approximate life span of a plastic spacer is five to
seven years.
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 108084, 108658, 109665, and 109702.
In Ruling 113718 dated October 18, 1996 to Dana Corporation
we determined that certain wooden spacers, spindle nuts, and
plastic caps met the requirements to be designated as instruments
of international traffic.
Dana Corporation now advises that the wooden spacers will be
replaced by the plastic spacers described above.
After a review of the information submitted, we determine
that the plastic spacers, as described above, meet the
requirements to be designated as instruments of international
traffic.
HOLDING:
The plastic spacers are designated as instruments of
international traffic within the meaning of 19 U.S.C. 1322(a) and
19 CFR 10.41a.
Sincerely,
Jerry Laderberg
Acting Chief,
Entry and Carrier Rulings Branch