OT:RR:BSTC:CCR H346768 SEH
Tom Gould
Tom Gould Customs Consulting, Inc.
16475 466th Pl SE
North Bend, WA 98045
Via E-mail: [email protected]
RE: Instruments of International Traffic; 19 U.S.C. § 1332(a); §§ 10.41a(a)(1), 10a(a)(3);
Bloodhound Tracking Device, Inc.
Dear Mr. Gould:
This responds to an April 7, 2025, electronic ruling submission to the National
Commodity Specialist Division (“NCSD”) (N347512), U.S. Customs and Border Protection
(“CBP”), containing the general description “Request for Ruling on Classification of
Bloodhound Tracking Devices as Instruments of International Traffic. Please see letter
attached.” The referenced letter submitted on behalf of Bloodhound Tracking Device, Inc.,
(BTD), also dated April 7, 2025, “request[s] a binding ruling, pursuant to 19 C.F.R. § 177.2, for
a determination whether BTD Chassis Unit, Trailer/Van unit or Container Unit qualify as
‘instruments of international traffic’ within the meaning of 19 U.S.C. § 1322(a)” (“Ruling
Request”). 1 The Ruling Request attached: (1) a BTD Product Spec Sheet with additional details
and specifications of the BTD units; and (2) a Customs Broker Power of Attorney. The NCSD
has referred the matter to the CCR Branch for a determination. Our decision follows:
Facts
The following facts, unless otherwise indicated, are from the Ruling Request, directly.
The subject devices are three models of BTD tracking devices:
1
BTD IIT Ruling Request Final 2025-04-07.pdf.
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1. Marine Container Units - permanently installed on intermodal containers
2. Trailer/Van Units - permanently installed on 53-foot trailers for international
transportation
3. Chassis Units - permanently installed on marine & intermodal chassis
The BTD units are designed to monitor and transmit real-time data regarding the
container’s location, movement, and security status as it is used in international trade. The
foregoing description of the subject devices is consistent with the eRuling submission that
included the following item descriptions:
Bloodhound Tracking Device are devices attached to marine
containers, trailers/vans or chassis and designed to monitor and
transmit real-time data regarding the container’s location,
movement, and security status as it is used in international trade.
Please see letter attached.
eRuling Submission (Apr. 7, 2025).
BTD units are permanently affixed to instruments of international traffic, such as marine
containers, trailers and chassis. Each BTD unit is affixed with super-strong neodymium magnets
with over 700 lbs of force.
Each of the BTD units (IU and CU) are used to track, trace the container, trailer and/or
chassis and sense inside the containers or trailers for temperature, humidity, motion, light
detection, carbon dioxide and other aspects inside the container or trailer. BTD devices are
permanently installed in or on the trailer, chassis or container.
The BTD units are installed using a proprietary app and secure installation protocol with
federally accepted encryption. Once installed the BTD units track the container/trailer to which
the unit is permanently attached, for the life of the units' lease with BTD systems. BTD units
track the container, trailer, provide sensing of the health and wellness of the contents, detect
human trafficking potential and detect certain chemicals and other information as prescribed by
the lease. The BTD units communicate to a secure cloud data server and that data is secure using
2048-bit SSL certificates and SHA-256 with RSA encryption. The BTD units will be
manufactured in Singapore, Batam, Indonesia or another country.
The CU versions of the BTD units are powered by li-ion 2 rechargeable batteries and dual
panel solar panels and have a five-year field service life. The IU versions of the BTD units are
powered by LTC 3 non-rechargeable batteries and have a three-year field service life. The BTD
units use cellular connectivity to report trailer, chassis and container location, content
2
E-mail, dated May 9, 2025, stated: “Li-ion is a reference to the rechargeable battery type, lithium-ion.”
3
E-mail, dated May 9, 2025, stated: “LTC is also a battery type, Lithium thionyl chloride or Li-SOCl2. The main
difference between LTC and Li-ion batteries is that the Li-ion are rechargeable and last up to 5 years while the LTC
batteries last up to 2 years but cannot be recharged once discharged. The LTC batteries must be replaced when they
are discharged while the Li-ion batteries can be recharged multiple times. The customer can choose whichever
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and condition data. The devices bear unique serial numbers to allow for high “secuiurty [sic]”
inventory control.
Issue 4
1. Whether the subject devices qualify for consideration as an IIT within the meaning of 19
U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
2. Whether the subject devices qualify for consideration as accessories to IITs within the
meaning of 19 C.F.R. § 10.41a(a)(2).
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 9803.00.50, 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 5
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
battery option they prefer.”
4
We note that, at the outset, the Ruling Request seeks a determination whether the subject devices qualify as
“instruments of international traffic” within the meaning of 19 U.S.C. § 1322(a). Whereas, under the “Issue”
heading the Ruling Request states “[d]o the BTD units qualify as accessories to instruments of international traffic
within the meaning of 19 C.F.R. §10.41a(a)(2)?” We will address both issues.
5
Certain customs revenue functions have been delegated to the Secretary of Homeland Security by the Secretary of
Treasury under the authority of the Homeland Security Act of 2002, Pub. L. 107-296. See Treas. Dep't Order 100-20
(Oct. 30, 2024); see also 19 C.F.R. Part 0—Treasury Department Order No. 100-16 (May 15, 2003).
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(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.
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). 6
As a threshold consideration, the subject devices are not containers or holders. The
purpose of the devices is to provide monitoring information, not to contain merchandise.
Therefore, the subject devices do not qualify for consideration as an IIT as contemplated by 19
C.F.R. § 10.41a(a)(1). The subject devices are, however, specifically designed for use with
shipping containers; therefore, we will consider whether they may be classified as accessories to
IITs under 19 C.F.R. §10.41a(a)(2) or (a)(3).
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).
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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.
4
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.
CBP has consistently held that shipping containers are “containers” and IITs. See, e.g.,
HQ H251366 (June 4, 2014) (finding that reefer shipping containers are IITs); HQ H044900
(Dec. 18, 2008) (holding that “it is well settled that intermodal cargo containers qualify as
‘instruments of international traffic.’”); HQ 113003 (Jan. 27, 1994)(holding that intermodal
cargo containers qualify for treatment as IITs); HQ 116684 (Aug. 17, 2006) and HQ W116719
(Nov. 30, 2006) (holding that intermodal containers are IITs). 7
Headquarters Ruling (“HQ”) 116684 (Aug. 17, 2006) found that accessories to IIT are
“substantial, suitable for and capable of repeated use with intermodal containers which are IITs
and will serve as accessories or equipment for such containers. CBP has previously reviewed
devices similar to the subject device. For example, in HQ 116684, CBP reviewed a Tamper-
Resistant Embedded Controller (“TREC”) which was a container-security, monitoring and
tracking device that, once installed on a shipping container, collects, analyzes, and reports data
regarding the status, condition and location of the container and its contents from point of origin
to destination. HQ 116684 (Aug. 17, 2006). CBP found that these devices were substantial,
suitable for and capable of repeated use with intermodal containers which are IITs. Id. Similarly,
in HQ H335140 (May 17, 2024) CBP found more recently that certain Tive Solo Tracking
Devices once installed on a shipping container that collect, analyze and report in real-time
7
See also The Customs Convention on Containers, which defines the term “container” as an:
. . . article of transport equipment (lift-van, movable tank or other similar structure):
(i) fully or partially enclosed to constitute a compartment intended for containing goods;
(ii) of a permanent character and accordingly strong enough to be suitable for repeated use;
(iii) specially designed to facilitate the carriage of goods, by one or more modes of transport, without
intermediate reloading;
(iv) designed for ready handling, particularly when being transferred from one mode of transport to
another;
(v) designed to be easy to fill and to empty; and
(vi) having an internal volume of one cubic metre or more;
The term “container” shall include the accessories and equipment of the container, appropriate for the type
concerned, provided that such accessories and equipment are carried with the container. The term “container” shall
not include vehicles, accessories or spare parts of vehicles, or packaging. Demountable bodies, are to be treated as
containers.
Customs Convention on Containers, 1972, Ch. 1, Art. 1(c), et seq.
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regarding the location and condition of the container from the point of origin to ultimate
destination were substantial, suitable for and capable of repeated use with IITs.
Based upon review of the submission and information provided, the subject devices are
substantial, suitable for and capable of repeated use with IITs. Based on the foregoing, the
subject devices qualify for designation as accessories to IITs. Therefore, they qualify for entry-
free and duty-free treatment pursuant to 19 C.F.R. § 10.41a(a)(3).
Holding
The subject devices do not qualify for duty-free treatment as IITs within the meaning of
19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
The subject devices qualify as accessories to an IIT within the meaning of 19 U.S.C. §
1322(a) and 19 C.F.R. § 10.41a(a)(3).
Sincerely yours,
W. Richmond Beevers, Chief
Cargo Security, Carriers, and Restricted
Merchandise Branch
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