BOR-4-07-RR:IT:EC 114238 CC

Ryan Choi
President
Kingsfield Inc.
184 Central Ave. 1st Fl.
Old Tappan, N.J. 07675

RE: IIT; polypropylene bags; 19 U.S.C. § 1322(a); 19 CFR § 10.41a

Dear Mr. Choi:

This is in response to your letter of October 5, 1998, requesting that we designate certain polypropylene bags as instruments of international traffic (IIT’s).

FACTS:

You state that the bags are constructed of polypropylene material and measure 35.6" x 35.6" x 72". The bags are used for the transportation of plastic resin. Approximately 80,000 to 100,000 of the bags are used in a year, and a bag is used typically three to five times. You ask whether the bags are subject to quota/visa restraints.

ISSUE:

Whether the subject polypropylene bags 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:

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 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 instruction 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). Paragraph (a)(1) of section 10.41a designates lift vans, cargo vans, shipping tanks and certain other named articles as IIT’s and states that other articles may be designated as IIT’s by the Commissioner of Customs in a decision to be published in the weekly Customs Bulletin. Once designated as IIT’s, 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 (TSUS), as well as Headquarters Ruling Letters (HQs) 104766, dated August 22, 1988; 109665, dated September 12, 1988; and 109702, dated September 30, 1988.

Upon review of the request, we are of the opinion that the polypropylene bags in question are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. We have ruled that polypropylene bags qualify as IIT’s. See, e.g., Treasury Decision (T.D.) 76-171; HQ 109696, dated September 12, 1988; HQ 113220, dated September 28, 1994; HQ 113407, dated April 25, 1995; HQ 113916, dated July 2, 1997; and HQ 114418, dated September 23, 1998. Consequently, we find that the subject polypropylene bags qualify as IIT’s pursuant to 19 U.S.C. § 1322(a). In addition, as instruments of international traffic, the bags are not subject to quota/visa restraints.

HOLDING:

The subject polypropylene bags qualify as instruments of international traffic and may be released pursuant to 19 CFR § 10.41a.

Sincerely,

Jerry Laderberg
Chief
Entry Procedures and Carriers Branch