OT:RR:BSTC:CCR H344505 KAM
Ms. Katie In
World Asia Logistics Inc
3483 Satellite Blvd. #210S
Duluth, GA 30096
RE: Instruments of International Traffic; 19 U.S.C. § 1332(a); 19 C.F.R. §§ 10.41a(a)(1),
10.41a(a)(2); plastic tray; dunnage.
Dear Ms. In:
This is in response to your January 22, 2025, letter and supplemental material,
(collectively, “ruling request”) on behalf of SK Battery America, Inc (“SKBA”). In your request
you inquire whether certain dunnage plastic trays qualify as “instruments of international traffic”
within the meaning of 19 U.S.C. § 1332(a). Our ruling is set forth below.
FACTS:
The following facts are from your ruling request and supplements thereto. SK Battery
American, Inc (“SKBA”) is a global leading battery manufacturer for electronic vehicles. 1 The
subject dunnage plastic trays (“plastic trays”) under consideration are identified as custom-
designed, safety packaging containers. 2 These plastic trays are specifically used for the secure
transportation of lithium-ion battery modules and cells from the SKBA manufacturing facility in
Hungary to automobile manufacturers in the United States such as Ford and Hyundai Motors for
use in the production of electric vehicles. 3 The primary use of the plastic trays is to surround the
1
https://www.skbatteryamerica.com/company/intro.html.
2
Ruling Request SKBA Final (Jan. 22, 2025) at 1, 7.
3
Id. at 1.
lithium-ion battery modules and cells to protect them during transit. 4 There are two types of
plastic trays:
1. Dunnage for Modules: BEV-H. Made of HDPE (High-Density Polyethylene);
dimensions: 48”x40”x27” (1200x1000x690mm).
2. Dunnage for Cells: E603C & E805C. 5 Made of ABS (Acrylonitrile Butadiene
Styrene); dimensions: 48”x43”x30” (1200x1100x735.5mm). 6
Both types of are constructed from durable plastic materials to ensure the protection of the
battery modules and cells during transit. 7 The plastic trays are exclusively used for transportation
purposes and are not for sale or any other use beyond facilitating safe transportation. 8 The plastic
trays are repetitively utilized in international shipments. 9 Both battery modules and cells are
loaded into the plastic trays at the plant in Hungary and shipped to the United States. 10 After the
battery modules and cells are delivered to end users in the United States, the empty plastic trays
are shipped back to Hungary for reuse in subsequent shipments within one year of importation. 11
Approximately 18,000 plastic trays are currently utilized annually for these shipments, with an
additional 14,600 expected at the end of this year. 12 These plastic trays are designed to be reused
indefinitely, with loss or damage occurring at a typical level of less than 2% per transportation
cycle (which includes departure from Hungary to the SKBA warehouse, to the U.S. client
company, back to the SKBA warehouse, and returning to Hungary). 13
The plastic trays for battery modules (BEV-H) consists of six parts: a plastic pallet (1),
sleeve (2), plastic tray (3), lid (4), packing (5), and polypropylene banding (6). 14 These six parts
are made of either High-Density Polyethylene, Thermoplastic Polyethylene, or Polyethylene. 15
See image below:
4
Id.
5
RFI Questions 4-07-25. This new model of cell dunnage (E805C) is not in current stock and will become available
in 2025.
6
Ruling Request SKBA Final V2 (Apr. 7, 2025) at 1, 2.
7
Ruling Request SKBA Final (Jan. 22, 2025) at 2.
8
Id.
9
Id.
10
Id.
11
Id. at 1, 10.
12
Id. at 1; RFI Questions 3-13-25; RFI Questions 4-07-25. The approximately 18,000 trays mentioned is the
estimated annual usage, while there are currently a stock of 12,086 cell trays and 11,600 module trays in Hungary.
The estimated annual usage of cell trays is 16,000 and the estimated annual usage is 2,000 trays. Based on this total
quantity, the importer estimates the annual usage to be around 18,000 trays. According to the importer, a new model
of cell dunnage (E805C) will be produced as a new type of dunnage in 2025. The estimated annual usage for these
cell trays is 14,600 trays. This number is not included in the 18,000 current available stock of plastic trays. It is
expected that the current stock, intended for repetitive use, can cover the annual usage. The estimated annual usage
quantity may vary depending on the customer’s order changes.
13
Ruling Request SKBA Final (Jan. 22, 2025) at 1; RFI Questions 2-21-25.
14
Ruling Request SKBA Final V2 (Apr. 7, 2025) at 5.
15
Id.
2
The plastic trays for battery cells (E603C) consists of seven parts: a top cover (1),
polyethylene foam (2), inner tray (3), side cover (4), bottom cover (5), pallet (6), and
polyethylene terephthalate banding (7). 16 These seven parts are made of either Acrylonitrile
Butadiene Styrene, Polyethylene, Polypropylene, High-Density Polyethylene, or Thermoplastic
Polyethylene. 17 See image below:
16
Ruling Request SKBA Final V2 (Apr. 7, 2025) at 6.
17
Id.
3
The second type of plastic trays for battery cells, expected to be in use later this year,
(E8053C) consists of seven parts: a top cover (1), polyethylene foam (2), inner tray (3), side
cover (4), bottom cover (5), pallet (6), and polyethylene terephthalate banding (7). 18 These seven
parts are made of either Acrylonitrile Butadiene Styrene, Polyethylene, Polypropylene, High-
Density Polyethylene, or Polyethylene Terephthalate. 19 See image below:
The plastic trays were previously entered under Temporary Importation Bond (“TIB”)
using Harmonized System (H.S.) code 3923.90.0080. However, you request that we determine if
these plastic trays qualify as Instruments of International Traffic (“IIT”) under 19 U.S.C.
§1327(a) and 19 C.F.R. §10.41.
ISSUE:
Whether the subject dunnage plastic trays qualify for consideration as IIT within the
meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
LAW AND ANALYSIS:
Per 19 C.F.R. § 141.4(a), “all merchandise imported into the United States is required to
be entered, unless specifically excepted.” The four exceptions to the requirement of entry are
18
Ruling Request SKBA Final V2 (Apr. 7, 2025) at 7.
19
Id.
4
listed under 19 C.F.R. § 141.4(b), one of which is instruments of international traffic (“IIT”). See
19 C.F.R. § 141.4(b)(3).
Subheading 9803.00.0, 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 20 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.
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 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.
19 C.F.R. § 10.41a(a)(1)(emphasis added).
Such instruments may be released without entry or the payment of duty, subject to the provisions
of this section.
20
Customs revenue functions have been delegated to the Secretary of Homeland Security by the Secretary of
Treasury, with exceptions herein not applicable, under the authority of the Homeland Security Act of 2002, Pub. L.
107-296. See Treas. Dep't Order 100-16 (May 15, 2003).
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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). 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 used as a container or holder must be: (1) substantial, (2)
suitable for and capable of repeated use, and (3) used in significant numbers in international
traffic. See HQ H291037 (Jan. 9, 2018); 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). 21
Pursuant to 19 C.F.R. § 10.41a(a)(3), an IIT “includes the normal accessories and
equipment imported with any such instrument which is a ‘container’ as defined in Article 1 of
the Customs Convention on Containers.” See 19 C.F.R. § 10.41a(a)(3). (Emphasis added)
Pursuant to 19 C.F.R. § 10.41a(a)(2),
(2) Repair components, accessories, and equipment for any container of foreign
production which is an instrument of international traffic may be entered or
withdrawn from warehouse for consumption without the deposit of duty if the
person making the entry or withdrawal from warehouse files a declaration that the
repair component was imported to be used in the repair of a container of foreign
production which is an instrument of international traffic, or that the accessory or
equipment is for a container of foreign production which is an instrument of
international traffic. The Center director must be satisfied that the importer of the
repair component, accessory, or equipment had the declared intention at the time of
importation.
Based upon review of the submission and information provided, the subject dunnage
plastic trays are containers that are substantial, suitable for and capable of repeated use, and used
in significant numbers in international traffic. They are substantial in that they are made of from
durable plastic material, to be used indefinitely, unless in the case of loss or damage. See HQ
H124655 (Mar. 3, 2011); HQ H116597 (Jan. 27, 2006). The plastic trays are suitable for and
capable of reuse for the transportation of other lithium-ion battery cells and modules. Once the
battery cells and modules are delivered to the end users in the United States, the trays are
returned to Hungary for reuse. Finally, the plastic trays are used in significant numbers in
international commerce, with approximately 18,000 trays utilized annually, and an additional
14,600 expected at the end of this year. Based on the foregoing, the subject dunnage plastic trays
21
The requirement that an article be “substantial” is not only a threshold requirement under 9803.00.50, but also a
requirement for an article to be an instrument of international traffic pursuant to CBP decisions. The origin for the
criterion found in CBP decisions that an article be “substantial” is found in Schedule 8, Item 808.00 of the Tariff
Schedule of the United States (1963)(TSUS), the predecessor provision to 9803.00.50, HTSUS. Likewise, the
criterion that an article be “suitable for and capable of repeated use” is found in Schedule 8, Item 808.00, TSUS,
Headnote 6(b)(ii)(stating that the article must be capable of “reuse”). Although the requirement that an article be
capable of reuse is no longer under subheading 9803.00.50, HTSUS (the successor provision to Item 808.00, TSUS),
to receive duty-free treatment thereunder nevertheless, “reuse” is still required, pursuant to CBP decisions, for an
article to be considered an instrument of international traffic.
6
are designated as IITs; therefore, they qualify for entry-free and duty-free treatment as IITs
pursuant to 19 C.F.R. § 10.41a(a)(1).
HOLDING
The subject dunnage plastic trays qualify for treatment as instruments of international
trade within the meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(1).
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the
assumption that all of the information furnished in connection with the ruling request and
incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and
complete in every material respect. The application of a ruling letter by a Customs Service field
office to the transaction to which it is purported to relate is subject to the verification of the facts
incorporated in the ruling letter, a comparison of the transaction described therein to the actual
transaction, and the satisfaction of any conditions on which the ruling was based.” If the terms
of the import or export contracts and results of the sampling records vary from the facts
stipulated to herein, or CBP ascertains discrepancies based upon a review of any other pertinent
information, this decision shall not be binding on CBP as provided for in 19 C.F.R. § 177(b)(1),
(2) and (4), and § 177.9(b)(1) and (2).
Sincerely,
W. Richmond Beevers. Chief
Cargo Security, Carriers, and Restricted
Merchandise Branch
Office of International Trade, Regulations
and Rulings
U.S. Customs and Border Protection
7