BOR-4-07:R:IT:EC 115959 TLS
William J. Phelan, Esq.
Phelan & Mitri
One Atlantic Street
Stamford, Connecticut 06901
RE: Instruments of International Traffic; 19 U.S.C. §1322(a); 19 CFR 10.41a(a)(1); Collapsible Steel Packing Crates
Dear Mr. Phelan:
This is in response to your letter, dated April 18,2003, on behalf of Subaru of America, Inc. requesting a ruling concerning whether collapsible metal crates as you describe them qualify as instruments of international traffic under 19 U.S.C. §1322(a) and 19 CFR 10.41a(a)(1). You also inquire about whether the crates are exempt from country of origin marking requirements.
FACTS:
You state that Subaru of America, Inc. imports automobile parts for entry at the Philadelphia, Atlanta, Portland, Oregon, Denver, Chicago, New York, and Boston Customs ports. The collapsible crates will be used for these importations. The crates are made of steel and are of a cage-like design, as you described them, and come in several different dimensions. After the automobile parts are imported in the crates, the crates will be emptied, collapsed, and then shipped back to Japan for reuse. The commercial life of each crate is estimated at between 12 and 20 round trips. This would mean each crate could be used for up to five years. It is estimated that as many as 480 crates will be employed in international traffic if the crates are used for shipment to all ports named above. You also state that Subaru is aware that if the crates are diverted to domestic use, they will not be deemed instruments of international traffic at that point, even if they were so designated beforehand.
ISSUE:
Whether the subject collapsible steel packing crates used for the importation of automobile parts may be designated as instruments of international traffic under 19 U.S.C. §1322(a) and 19 CFR 10.41a(a)(1).
Whether the crates are exempt from country of origin marking requirements under 19 U.S.C. §1304.
LAW AND ANALYSIS:
Pursuant to 19 U.S.C. §1322(a), instruments of international traffic 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 is authorized to designate as instruments of international traffic such additional articles not specifically noted in that section. Such instruments may be released without entry or payment of duty.
To qualify as an instrument of international traffic 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 HTSUSA subheading 9803.00.50 and HQ 112303 (August 14, 1992). As you have noted, we have previously ruled on the qualifications of collapsible steel crates as instruments of international traffic. See HQ 112303, supra. In 112303, we ruled that collapsible steel packing crates used to import automobile engines qualified as instruments of international traffic. We find that the collapsible steel crates in this case are of similar design, construction, and use as those crates that were the subject of 112303. Thus, the collapsible steel crates in this case meet the requirements for instruments of international traffic.
Pursuant to 19 U.S.C. §1304(a), “every article of foreign origin (or its container, as provided in [19 U.S.C. §1304(b)]), imported in the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. Inasmuch as the crates are instruments of international traffic, they are not subject to the requirements of 19 U.S.C. §1304. See HQ 115119 (October 24, 2000), citing HQ 732621 (February 5, 1990).
HOLDING:
The collapsible steel crates you describe in your submission are hereby designated as instruments of international traffic within the meaning of 19 U.S.C. §1322(a) and pursuant to 19 CFR 10.41a(a)(1). As instruments of international traffic, the crates are not subject to the country of origin marking requirements of 19 U.S.C. §1304.
Sincerely,
Glen E. Vereb
Chief
Entry Procedures and Carriers Branch