BOR-4-07-OT:RR:BSTC:CCI H037859 GG
Ms. Annette Smith
Manager of Global Trade Compliance
The Clorox Company
1221 Broadway
Oakland, California 94612
RE: Instruments of International Traffic; Reusable Plastic Trays; 19 U.S.C. § 1322(a); 19 CFR § 10.41a
Dear Ms. Smith:
This is in response to your correspondence dated August 28, 2008, on behalf of the Clorox Company, in which you inquire about the designation of certain plastic trays as “instruments of international traffic.” Your request, submitted on the “Electronic Ruling (“eRuling”) Template, was forwarded to this office from the National Commodity Specialist Division for review. Our ruling is set forth below.
FACTS
The Clorox Company (hereinafter “Clorox”) seeks a determination that certain reusable rigid plastic “trays” be designated as “instruments of international traffic,” and classified under HTSUSA 9803.00.50. The reusable rigid plastic “trays” are designed specifically for the transportation of goods, namely carbon blocks. The “trays” are durable and are constructed for repeated use in the transport of the carbon blocks for which they are designed. The United States manufacturer of the “trays” estimates them to have a lifespan of over five years. The value of each tray is approximately $17.00. Clorox estimates an initial order of 66,000 trays, and will procure additional units as needed. The trays will be filled with the carbon blocks in the United States for shipment to Canada and China, where they will be emptied and returned to the U.S. to be refilled and shipped out to Canada and China again. This process will be repeated, with the thousands of “trays” being utilized continuously for the life of the “tray.” You have provided an image of the subject plastic trays, which indicates that the dimension of the trays are 23.5” feet long by 19.5” feet wide.
ISSUE
Whether the plastic trays described above 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
Title 19, United States Code, section 1322(a) (19 U.S.C. § 1322(a)), provides in pertinent part that “[v]ehicles and other instruments of international traffic…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…” The U.S. Customs and Border Protection (CBP) Regulations issued under the authority of § 1322(a) are contained in section 10.41 et seq. (19 CFR § 10.41a). Section 10.41a(a)(1) specifically designates lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics as instruments of international traffic (“IITs”).
Section 10.41a(a)(1) also authorizes the Commissioner of CBP to designate other items as IITs. Once designated as IITs, these items may be released without entry or the payment of duty, subject to the provisions of section 10.41a.
To qualify as an IIT within the meaning of 19 U.S.C. § 1322(a) and the regulations promulgated pursuant thereto (19 CFR § 10.41 et seq.), an article must be used as a container or holder. Further, 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 Schedule of the United States (“TSUS”), as well as Headquarters Decisions (“HQ”) 104766 (August 12, 1988); 109665 (September 12, 1988); and 109702 (September 30, 1988)).
The concept of reuse contemplated above is for commercial shipping or transportation purposes, and not incidental or fugitive uses. See Tariff Classification Study, Sixth Supplemental Report (May 23, 1963) at 99. See also Holly Stores, Inc. v. United States, 697 F.2d 1387 (Federal Circuit, 1982). CBP rulings on this matter have held that single use is not sufficient; reuse means more than twice See HQ 116663 (August 9, 2006) (Slip-Trays used multiple times meet requirements to qualify as IITs, while those used for single shipment and then destroyed do not qualify as IITs) and rulings cited therein.
Upon reviewing your request and accompanying image in the instant case, we are of the opinion that based on the information provided, the requisite criteria for designation of the subject plastic trays as instruments of international traffic have been met. The trays are used to hold carbon blocks during transportation from the United States to Canada and China; they are substantial, suitable for and capable of repeat use; and they are used in significant numbers in international traffic. Accordingly, the plastic trays meet the requisite criteria to qualify as IITs pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a.
This finding comports with previous determinations made by CBP, where CBP has ruled that certain articles of similar nature, use and construction as those presently under consideration qualify as instruments of international traffic pursuant to 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. It is well settled that certain plastic trays designed to transport specific items meet the criteria to qualify as instruments of international traffic. See HQ 114008 (June 11, 1998) (polyurethane trays used to transport brake drums designated as IITs), citing Treasury Decisions (T.D.) 68-56, 74-281 and 75-265 (plastic trays used to transport specific items found as substantial, suitable for, and capable of repeated use). See also HQ 112534 (January 25, 1993) (folding reusable plastic boxes used to import automobile strut components qualified as IITs); HQ 112393 (August 14, 1992) (reusable plastic pallet sets used to import certain automotive struts designated as IITs); and HQ 116663 (August 9, 2006) (empty plastic trays used to ship razors, parts of razors and manual toothbrushes designated as IITs).
HOLDING
The subject rigid plastic trays used to transport carbon blocks, as described above, qualify as “instruments of international traffic” within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a, and may be released without entry or the payment of duty.
Sincerely,
Glen E. Vereb
Chief
Cargo Security, Carriers and Immigration Branch