OT:RR:BSTC:CCR H242641 WRB
Mr. Anderson Barrett
Barrett Trade Services, LLC
8381 NW 68TH Street
Miami, FL 33166
RE: International Traffic; IGL Limited; 19 U.S.C. § 1322(a); 19 CFR § 10.41a.
Dear Mr. Barrett:
This is in response to your April 5, 2013, ruling request on behalf of your client, IGL Limited,which was forwarded to this branch for our direct response to you. In your request you inquire whether certain re-useable gas cylinders qualify as “instruments of international traffic” within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a. Our ruling is set forth below. Our decision follows.
FACTS
The following facts are from your ruling requests and supplements thereto. IGL Limited (IGL) is a company in Kingston, Jamaica, West Indies. IGL regularly imports used empty steel cylinder containers, both US and foreign-made, into the United States from Jamaica. The cylinders are filled with compressed gases (argon, nitrous oxide, helium) in the U.S. The filled cylinders are then shipped back to Jamaica. The gas-filled cylinders are distributed throughout Jamaica by IGL, and emptied, the cylinders are shipped back to the U.S. for re-filling, and the cycle is repeated. The inventory of cylinders in this loop numbers in the thousands. The subject cylinders measure approximately 9-½ inches in diameter and 55 inches high, have a serviceable life of up to 30 years. IGL is now contemplating adding similar, new, steel cylinder containers to their current inventory of steel cylinders.
ISSUE
Whether the compressed gas cylinders described above qualify as “instruments of international traffic” within the meaning of 19 U.S.C. § 1322(a) and 19 CFR § 10.41a?
LAW AND ANALYSIS
IGL asserts that the subject cylinders may be classified under subheading 9803.00.50, Harmonized Tariff Schedule of the United States (HTSUS) because they qualify as IITs.
Pursuant to 19 U.S.C. § 1322(a), 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. The relevant Customs and Border Protection (CBP) regulations implementing that statute are found at 19 C.F.R.§ 10.41a(a)(1) which provides in pertinent part:
Lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics, arriving (whether loaded or empty) in use or to be used in the shipment of merchandise in international traffic are hereby designated as "instruments of international traffic" . . . The Commissioner of Customs [now CBP] is authorized to designate as instruments of international traffic, . . ., such additional articles or classes of articles as he shall find should be so designated. Such instruments may be released without entry or the payment of duty, subject to the provisions of this section.
19 C.F.R. § 10.41a(a)(1)(emphasis added).
To qualify for entry-free and duty-free treatment as IITs under the aforementioned statutory and regulatory authority, the article must be a substantial container or holder. As stated above, CBP is authorized to designate as an IIT such additional articles not specifically noted in 19 C.F.R. § 10.41a(a)(1). Historically, CBP has held in its published decisions that in order to qualify as an IIT within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1), an article must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. See HQ H016491 (Oct. 1, 2007); HQ 114150 (Dec. 12, 1997); HQ 107545 (May 7, 1985); Treas. Dec. 71-159, Cust. B. & Dec. 296 (June 18, 1971); 99 Treas. Dec. 533, No. 56247 (Aug. 26, 1964).
Subheading 9803.50.00, HTSUS provides for the duty-free treatment of:
Substantial containers and holders, if products of the United States (including shooks and staves of United States production when returned as boxes or barrels containing merchandise), or if of foreign production and previously imported and duty (if any) thereon paid, or if of a class specified by the Secretary of the Treasury as instruments of international traffic, repair components for containers of foreign production which are instruments of international traffic, and accessories and equipment for such containers, whether the accessories and equipment are imported with a container to be reexported separately or with another container, or imported separately to be reexported with a container.
(footnote and emphasis added). Subchapter 98 of the HTSUS only applies to:
(a) Substantial containers or holders which are subject to tariff treatment as imported articles and are:
(i) Imported empty and not within the purview of a provision which specifically exempts them from duty; or
(ii) Imported containing or holding articles, and which are not of a kind normally sold therewith or are entered separately therefrom; and (b) Certain repair components, accessories and equipment.
See U.S. Note 1, et seq., Chapter 98, HTSUS.
As concerns the the compressed-gas cylinders, described in the FACTS section above, they are substantial inasmuch as they are made of steel. Further, they are suitable and capable of repeated use insofar as the current inventory of such cylinders numbers in the thousands and they have a service life expectancy of 30 years. Based on the foregoing, the compressed-gas cylinders are IITs; therefore, they will qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1) and 9803.50.0000, HTSUS.
HOLDING
The subject compressed-gas cylinders, described in the FACTS section above, are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
Sincerely,
Lisa L. Burley, Acting Chief
Cargo Security, Carriers and Restricted Merchandise Branch
Office of International Trade, Regulations & Rulings
U.S. Customs and Border Protection