BOR-4-07-RR:IT:EC 114482 CC

Scott D. Noe
Sr. Tech. Services Specialist
Tower Group International, Inc.
821 2nd Ave., #1400
Seattle, WA 98104

RE: IIT; polyethylene totes and lids; 19 U.S.C. § 1322(a); 19 CFR § 10.41a

Dear Mr. Noe:

This is in response to your letter of August 14, 1998, on behalf of Yazaki North America, Inc., requesting that we designate certain polyethylene totes and lids as instruments of international traffic (IIT’s).

FACTS:

You state that the totes and lids are constructed of high density polyethylene. When not collapsed for transport, each tote measures approximately 47.3" x 39.4" x 39.3", and each lid measures approximately 48.1" x 40.2" x 3". The totes and lids are used for the transportation of automotive wire assemblies. Approximately 400 sets of the totes and lids are used in a month, and a set of totes and lids has a life expectancy of 5 to 7 years.

ISSUE:

Whether the subject polyethylene totes and lids 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 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). 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 and accompanying documentation, we are of the opinion that the polyethylene totes and lids in question are substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. Consequently, we find that the subject polyethylene totes and lids qualify as IIT’s pursuant to 19 U.S.C. § 1322(a).

Also, you ask whether the subject totes must be serially numbered. There is no requirement that articles designated as instruments of international traffic pursuant to section 10.41a be serially numbered. Requirements for serially numbered substantial holders and outer containers are contained in section 10.41b. Consequently, the subject totes are not required to be serially numbered.

HOLDING:

The subject polyethylene totes and lids 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