OT:RR:BSTC:CCR H347908 MF
Karen L. Stone
Managing Partner
Anchor Customs Brokerage
7449 Shoreline Drive
Quinton, VA 23141
RE: Instruments of International Traffic; 19 U.S.C. § 1332(a); § 10.41a(a)(1), Raedlinger
Primus Line Inc.; Transport Units (Reels).
Dear Ms. Stone:
This is in response to your April 14, 2025, ruling request on behalf of Raedlinger Primus
Line Inc. (“Raedlinger Primus Line Inc.”). In your request you inquire whether Transport Units
(Reels) qualify as “instruments of international traffic” (“IIT”) within the meaning of 19 U.S.C.
§ 1332(a). Our decision follows.
FACTS:
The following facts are from your ruling request and supplements thereto. The subject
items are Transport Units (Reels). There are 7 models of this item: T210, TE 210, TE400,
TE500, TE 600, TE800, TE1100. The subject items are designed to transport hoses through
international traffic and be returned to Germany empty for refitting with hoses and eventual
reuse. The Reels are comprised of (1) a basic reel (spool) component, and (2) a surrounding
frame which holds the reel in place and provides a sturdy base for rotation. When equipped with
a drive mechanism to rotate the reel, the transport unit facilitates the winding/unwinding of a
hose used in trenchless pipe rehabilitation.
With respect to the subject reels, the item’s frames are constructed of components made
of steel. The subject reels vary in their dimensions:
• T210: 7,10 ft x 7,38 ft x 7,55 ft
• TE210 without electrical drive: 7,90 ft x 7,38 ft x 8,04 ft
• TE400 without electrical drive: 13,99 ft x 7,38 ft x 8,04 ft
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• TE500 without electrical drive: 17,28 ft x 7,38 ft x 8,04 ft
• TE600 without electrical drive: 20,56 ft x 7,38 ft x 8,04 ft
• TE800 without electrical drive: 27,42 ft x 7,38 ft x 8,27 ft
• TE1100 without electrical drive: 37,56 ft x 7,38 ft x 8,26 ft
An example of subject reels is depicted below:
Raedlinger states the reels are reused about 12-15 times in a year. Further, Raedlinger
notes that all reels will be returned to Germany. The average lifespan of the reels is around 15
years, and they are rated for in excess 100 use cycles. Approximately 190 of these reels are
currently in use. According to the documents provided, the subject reels in current circulation
have been formally entered and duty paid.
ISSUE:
Whether the subject reels qualify for consideration as IIT within the meaning of 19 U.S.C. §
1322(a) and 19 C.F.R. § 10.41a(a)(1).
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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. 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 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:
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.
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).
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19 C.F.R. § 10.41a(a)(1) (emphasis added).
Such instruments may be released without entry or 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
U.S. Customs and Border Protection (“CBP”) has previously determined that rigid plastic
spools used to ship large quantities of yarn (90 kilograms) met the requirements necessary for
designation as IITs. See HQ 113554 (Aug. 31, 1995). Additionally, plastic spools used for the
transportation of steel tire cord have been found to constitute IITs. See HQ 253872 (Aug. 1,
2014).
Additionally, based upon review of the submission and information provided, the subject
reels 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 steel 3
and the component parts have an average lifespan of 15 years. They are used in significant
numbers in international commerce, given that approximately 190 of these reels are currently in
use in international traffic. Lastly, the subject reels are suitable for and capable of reuse given
that these units are used approximately 12-15 times in a12 month period and are rated for 100 or
more use cycles.
Based on the foregoing, in general, the reels are eligible for designation as IITs; and
would therefore qualify for entry-free and duty-free treatment as IITs pursuant to 19 C.F.R. §
10.41a(a)(1). However, when originally imported, the subject reels underwent normal entry
process and the payment of applicable duties. Consequently, upon eventual reimportation, these
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.
3
See HQ 114733 (Nov. 17, 1999); H116376 (Jan. 11, 2005) (CBP determined steel bins and steel chains were
substantial); HQ 303170 (Apr. 9, 2019) (CBP held steel container racks were substantial); and H339996 (October
11, 2024) (CBP found that steel cargo support structures were substantial).
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reels qualify for duty-free treatment under Subheading 9803.00.0, HTSUS, not as IITs, but as “of
foreign production and previously imported and duty paid” substantial holders. The subject reels
which have not yet formally entered the United States, as discussed above, qualify for entry-free
and duty-free treatment as IITs pursuant to 19 C.F.R. § 10.41a(a)(1).
HOLDING:
The subject reels that have not yet formally entered the United States qualify for
treatment as instruments of international trade within the meaning of 19 U.S.C. § 1322(a) and §
10.41a(a)(1). However, those reels which were previously imported, entered, and for which
duties were paid should be entered under Subheading 9801.00.20, HTSUS as “Articles,
previously imported.”
Sincerely,
W. Richmond Beevers, Chief,
Cargo Security, Carriers, and Restricted Merchandise Branch
Office of Trade, Regulations & Rulings
U.S. Customs and Border Protection
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