BOR-4-07-RR:IT:EC 114187 CC
Richard T. Senior
Transportation Coordinator
REHAU Incorporated
P.O. Box 1706
Leesburg, VA 20177
RE: Instruments of International Traffic; 19 U.S.C. 1322(a);
19 CFR 10.41a;
Aluminum shipping racks
Dear Mr. Senior:
This is in response to a letter of November 20, 1997,
requesting that we designate certain "aluminum shipping racks" as
instruments of international traffic (IIT's).
FACTS:
You state that the subject containers are aluminum shipping
racks designed for transporting window lineal extrusions of PVC.
The racks, valued at about $615 each, measure approximately 93
inches in length, 12 « inches in width, and 12 ¬ inches in
height. The 1,230 racks used by REHAU have a duration of
approximately 10 years. You state that all of the racks will be
used exclusively for cross border traffic by truck between
REHAU's Canadian manufacturing facilities, located in Prescott,
Ontario and Winnipeg, Manitoba, and your customers in the
midwestern and eastern United States.
ISSUE:
Whether the subject racks 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 and accompanying documentation,
we are of the opinion that the containers 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 racks qualify as IIT's pursuant to 19
U.S.C. 1322(a).
HOLDING:
The subject racks 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