BOR-4-07:OT:RR:BSTC:CCI H050604 ALS
Gail T. Cumins, Esq.
Sharretts, Paley, Carter & Blauvelt, P.C.
75 Broad Street
New York, New York 10004
RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 CFR § 10.41a; Plastic Garment Hangers
Dear Ms. Cumins:
This is in response to your correspondence, dated January 29, 2009, with enclosures and a sample, on behalf of your client, Accessory Corporation, in which you requested a ruling on whether certain plastic garment hangers sold by your client qualify as instruments of international traffic under 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. Our ruling is set forth below.
FACTS:
Your client, Accessory Corporation, sells new and used plastic garment hangers that are manufactured in various locations throughout the world. The hangers are composed of polypropylene or K-Resin plastic. The hangers at issue are members of the Vertical Integrated Merchandise System (“VIMS”). The VIMS is a patent-pending system that enables two or three hangers to be attached to each other to allow multiple garments to be hung together in a vertical position. The VIMS is comprised of an upper-body garment hanger, a bottom hanger, a removable hook, a loop connector for coordinated garments, and vertical connectors. The VIMS allows the hangers to be used with various-sized garments.
Accessory Corporation sells the plastic garment hangers to foreign garment manufacturers, who in turn use them to import garments into the United States. In some cases, Accessory Corporation will acquire the hangers from retailers after their initial use, eliminate the damaged and defective hangers, and sanitize, sort, and package the remaining hangers for re-sale to foreign garment manufacturers.
You have provided marketing documents that list various sizes for the plastic garment hangers. The hangers range in size from eight inches to 14 inches long and four inches to 9.5 inches tall. Some of the hangers have “double bottoms,” which allow more than one set of garments to be hung on the hanger. Collectively, these hangers are called “pinch clip coordinates.” Hangers called “bottoms” range in size from eight inches to 12 inches long. Hangers called “coordinate loops” range in size from eight inches to 12 inches long. Hangers called “extended coordinates” range in size from six inches to 10 inches long and have a 9.5-inch drop from top to bottom. Hangers called “frames” range in size from 10 inches to 12 inches long, and their “prongs” range in size from seven inches to 11 inches. Hangers called “pinch clip bottoms” range in size from eight inches to 14 inches long. Hangers called “multi-sets” range in size from 10 inches to 18 inches long for “doubles,” are nine inches long for the “triples,” and range from eight inches to 10 inches long for the “quads.”
You have stated that all of the articles are substantial, suitable for and capable of repeated use, and will be used to ship goods in international traffic on a routine basis. You also state that approximately “hundreds of millions” of hangers are processed in any given year for “a minimum of five cycles.”
ISSUE:
Whether the plastic garment hangers described above may be designated as instruments of international traffic pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a.
LAW AND ANALYSIS:
Pursuant to 19 U.S.C. § 1322(a), instruments of international traffic (also referred to herein as “IITs”) shall be excepted from the application of the Customs laws to the extent that such terms and conditions are prescribed in regulations or instructions. Pursuant to 19 CFR § 10.41a(a)(1), the Commissioner of Customs and Border Protection (CBP) is authorized to designate as IITs such additional articles not specifically noted in that section. Once designated as such, the instruments may be released without entry or payment of duty.
To qualify as an IIT within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(1), an article must be used as a container or holder. The article also must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. See Harmonized Tariff Schedule of the United States Annotated subheading 9803.00.50 and CBP Ruling HQ 112303 (August 14, 1992).
With regard to the plastic garment hangers, we have also ruled on articles of similar construction and purpose. In CBP Ruling H042107 (November 24, 2008), we held that plastic garment hangers made of molded plastic, qualified as an IIT. That ruling cited Holly Stores, Inc. v. United States, 667 F.2d 1387, which held that the concept of reuse referred to in numerous CBP rulings means the article is used for commercial shipping and transportation purposes, not non-commercial or fugitive uses. We further defined the concept of reuse in CBP Ruling HQ 116032 (October 30, 2003), in which we held that “reuse” in this context means using more than twice. See also H042107, supra. In this case, you state that the plastic garment hangers will be used for “a minimum of five cycles,” as noted above. Given such, we find that our analysis in H042107 and HQ 116032 applies to the subject plastic garment hangers as well. We also noted above that you state that “hundreds of millions” of the hangers will be used during their life cycle. Consequently, we find that the plastic garment hangers are substantial, suitable for and capable of repeated use, and are used in significant numbers in international traffic. Therefore, the subject plastic garment hangers qualify as IITs pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(1).
HOLDING:
The subject plastic garment hangers as described above are hereby designated as IITs pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a(a)(1).
Sincerely,
Glen E. Vereb
Chief
Cargo Security, Carriers, and Immigration Branch