BOR-7-07-CO:R:IT:C 112836 DEC

Mr. Arthur J. Bianchi
Navtrans International Freight Forwarding Incorporated
700 Rockaway Turnpike - Fourth Floor (Room 405)
Lawrence, New York 11559

RE: Instruments of International Traffic; IIT; Plastic Reel; 19 U.S.C. 1322; 19 C.F.R. 10.41a.

Dear Mr. Bianchi:

This is in reference to your July 8, 1993, correspondence with the United States Customs Service in which you requested a ruling designating plastic reels as instruments of international traffic.

FACTS:

Corning Incorporated uses plastic reels with covers to ship glass fiber internationally. Re-Source America Incorporated will control the international movement of the glass fiber on behalf of Corning. You submitted an instruction sheet detailing the procedure in which Corning glass fiber customers need to follow to return the plastic reels and covers to Re-Source America for re-use. Re- Source America is requesting a ruling designating the above- referenced items as instruments of international traffic pursuant to Title 19, United States Code, section 1322 (19 U.S.C. 1322) and Title 19, Code of Federal Regulations, section 10.41a (19 C.F.R. 10.41a) because the plastic reels and covers will be returned to the United States empty to be used again to ship more glass fiber overseas.

ISSUE:

Whether the described plastic reels may be considered instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and section 10.41a of the U.S. Customs Regulations (19 C.F.R. 10.41a).

LAW AND ANALYSIS:

Title 19, United States Code, section 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 -2-

and subject to such terms and conditions as may be prescribed in regulations or instructions of the Secretary of the Treasury.

19 U.S.C. 1322(a)(1993).

Title 19, Code of Federal Regulations, section 10.41a authorizes the Commissioner of Customs to designate other items as instruments of international traffic in decisions to be published in the weekly Customs Bulletin. Once designated as instruments of international traffic, these items may be released without entry or the payment of duty, subject to the provisions of 10.41a. 19 C.F.R. 10.41a(1)(1993).

To qualify as an "instrument of international traffic" within the meaning of 19 U.S.C. 1322(a) and the regulations promulgated pursuant thereto (19 C.F.R. 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 generally Headquarters Decisions 103232, 104766, 108084, 108658, 109665, and 109702).

Upon reviewing the request and accompanying documentation, we are of the opinion that the requirements of establishing instrument of international traffic status have been met. See T.D. 71-159 (1971 and T.D. 75-212 (1975). More specifically, the plastic reels and covers in question appear to be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic.

HOLDING:

The plastic reels used to transport glass fiber are hereby designated as instruments of international traffic within the meaning of 19 U.S.C. 1322(a) and 19 C.F.R. 10.41a and may be released without entry or the payment of duty.

Sincerely,

Arthur P. Schifflin
Chief
Carrier Rulings Branch