OT:RR:BSTC:CCR H345597 JLE

Jason Waite Attorney Alston & Bird 950 F Street, N.W. Washington, DC 20004

RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. § 10.41a(a)(1); Wind Turbine Generator Component Transport Frames

Dear Mr. Waite:

This is in response to your February 27, 2025, ruling request on behalf of Vesta- American Wind Technologies, Inc. (“Vestas”). In your request you inquire whether five variations of wind-energy cargo transport frames 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. The subject items are cargo support structures designed to hold, move, and store wind turbine generator components. There are five types of frames:

(a) Blade Transport Frames (“Blade TF”),

(b) Nacelle Transport Frames (“Nacelle TF”),

(c) Hub Transport Frames (“Hub TF”),

(d) Powertrain Transport Frames (“Powertrain TF”), and

(e) Tower Transport Frames (“Tower TF”). The subject transport frames made from heavy-duty welded steel. The frames are typically manufactured in Spain or China, which may differ depending on when the frame was manufactured. The overall inventory of the frames includes over 7,000 subject transport frames. It is estimated that the merchandise will be used two to three times per year with a lifespan of five to seven years.

The imported wind turbine generator components are delivered directly to project sites, or wind parks, where the wind turbine generators are assembled, erected, and placed in operation. The transport frames are collected at the wind park and loaded onto a flatbed truck, placed into a container, and returned to the ocean container facility for export to the origin factory. Vestas uses a tracking system to record import and export of various frames. Once the wind turbine generator is unladed at the wind park, the frames are collected at the site until they reach “critical mass.” Then the export process begins. According to you, “critical mass” is based on when Vestas has enough frames to fill a container for re-export. You note that only a small number of frames can fit into a container. You predict that frames may stay in the U.S. for the duration of the project, which has an average completion time of six to nine months.

We will address the frames individually below.

(a) Blade Transport Frame

A Blade TF is used to stack wind turbine blades for transport and storage. The frame is made of three main component parts: the ABF Tip Clamp, the Tip Frame Bottom, and the Tip Frame Top. There are approximately 2,410 Blade Transport Frames.

(b) Nacelle Transport Frame

A Nacelle TF is used to transport the wind turbine nacelle. The frame consists of the Nacelle TF Rear and Nacelle Transport Frame Front components. There are approximately 397 Nacelle Transport Frames.

(c) Hub Transport Frame

A Hub TF is used to transport a wind turbine hub. The frame consists of Hub TF Front and Hub TF Rear components. There are approximately 992 Hub Transport Frames.

(d) Powertrain Transport Frame

A Powertrain TF is used to transport a wind turbine powertrain. The Powertrain TF consists of one part. There are approximately 229 Powertrain Transport Frames.

(e) Tower Transport Frame

A Tower TF is used to transport a wind turbine tower. The frame consists of tower feet, located at each end of the tower section, and double stack frames. There are approximately 2,982 sets of tower feet. Issue

Whether the various subject cargo transport frames 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 listed under 19 C.F.R. § 141.4(b), one of which is instruments of international traffic (“IIT”). 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 1 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:

1 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). 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. 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). 2 Due to the similarity of the frames functioning as the primary holders of a specific wind turbine generator component, we will provide the analysis for the individual transport frames as a collective. All the frames are foreign made and are constructed from heavy duty welded steel. The subject frames are designed – either as a single component or by a combination of several components – to hold the merchandise. It is our position the subject transport frames would be considered substantial. The frames have a lifespan of five to seven years and are expected to be used two or three times a year. It is our position that the subject transport frames are suitable for and capable of repeated use. Furthermore, there are over seven thousand frames in Vestas’ inventory, all intended to be used for international transportation multiple times a year. It is our position, there are significant numbers of each of the above-described transport frames. Therefore, it is our position that the subject transport frames qualify as an instrument of international trade per 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). We note, the subject IITs will remain in the U.S. until the wind park reaches “critical mass” of the frames, then the frames will be exported. This process may take six to nine months.

2 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. IITs are required to exit the United States within 365 days from day of admittance or else will be subject to duty for consumption per 19 C.F.R. § 10.41a(g)(1). Holding The subject transport frames are IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). Sincerely yours,

W. Richmond Beevers, Chief Cargo Security, Carriers, and Restricted Merchandise Branch Office of Trade, Regulations and Rulings U.S. Customs and Border Protection