OT:RR:BSTC:CCR H348097 MF
Shirley Moore
Lisa Ragan Customs Brokerage
347 W. Taylor Street
Griffin, GA 30223
RE: Instruments of International Traffic; 19 U.S.C. § 1332(a); § 10.41a(a)(1); § 10.41a(a)(2),
Aeronet Middle East FZE; Returnable Pallets, Cargo Nets, Restraint Straps, Repair and
Accessory Components.
Dear Ms. Murrin:
This is in response to your April 14, 2025, ruling request on behalf of Aeronet Middle
East FZE (“Aeronet”). In your request you inquire whether aircraft pallets, cargo nets, restraint
straps, repair and accessory components 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 aircraft pallets, cargo nets, restraint straps, and repair and accessory components,
which are used by airlines to load cargo into aircraft.
The subject pallets are known as Unit Loading Devices (“ULD”) which are specially
designed pallets used to consolidate cargo in order to streamline the loading and unloading
process during air freight transportation. There are various types of ULDs, including the pallets
described in this request, as well as containers used to load luggage, freight, and mail, etc. The
subject pallets are capable of being loaded into a cargo or passenger aircraft, such as Boeing 777,
747, or Airbus A330.
With respect to the subject pallets, the items are made of aluminum. The subject pallets
are 2235mm x 3175mm. Approximately one hundred thousand (100,000) pallets are integrated
into the cargo airline industry worldwide per year.
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The subject pallets have a five-to-six-year lifespan without repairs, provided they are well
maintained and stored.
The subject pallets are depicted below:
The subject cargo nets generally cover the entire load on the pallet and have attachment
points where they are affixed to the pallet. The purpose of the subject cargo nets is to prevent the
loose or stacked cargo from shifting during flight. The subject nets have a lifespan of three to
five years depending on industry and airline requirement. The subject cargo nets are rated for
more than 750 use cycles. Freighter aircraft around the world use approximately 500,000 cargo
nets per year, with AeroNet contributing approximately 125,000. The subject nets are depicted
below:
2
The subject restraint straps can be used separately or in conjunction with the cargo net to
secure individual items or layers within the pallet. The subject straps have fittings at each end to
be anchored to the pallet in order to secure heavy loads and also feature buckles to pull the cargo
down securely against the pallet. The subject straps have a lifespan of three to five years
depending on industry and airline requirements. The subject tie down straps are rated for more
than 300 use cycles. More than 2,000,000 tie-down straps are introduced into freighter
operations each year, with Aeronet providing approximately 400,000. The subject straps are
depicted below:
The requester also indicated that the “repair and accessory components” are replacement
or spare parts for the cargo net and the pallet, such as studs, fastening hooks, fittings, and high
strength ropes, posts, seat tracks, fasteners, rivets, and extrusions to safely secure the load or
cargo. These parts may become damaged during the loading/unloading operation and must be
replaced or repaired in order for the ULD to be effective.
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ISSUE:
1. Whether the subject pallets qualify for consideration as IIT within the meaning of 19
U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).
2. Whether the subject cargo nets qualify for consideration as accessories of IIT within the
meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(2).
3. Whether the tie down straps qualify for consideration as accessories of IIT within the
meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(2).
4. Whether the subject parts qualify for consideration as IIT repair components within the
meaning of 19 U.S.C. § 1322(a) and 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. 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
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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(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.
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
Pursuant to Section 19 C.F.R. § 10.41a(a)(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
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.
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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 port director must be satisfied that the importer of the
repair component, accessory, or equipment had the declared intention at the time of
importation.
19 C.F.R. § 10.41a(a)(2).
Pallets
Pursuant to 19 C.F.R. § 10.41a(a)(1), pallets are per se IITs. In HQ H119060 (Nov. 9,
2020), CBP held that “pallets have already been designated as an instrument of international
traffic by regulation. See 19 C.F.R. § 10.41a(a).” HQ H119060 (Nov. 9, 2010); see also HQ
H252710 (May 19, 2014) (CBP held “the subject plastic pallets are IITs Pallets have already
been designated as an instrument of international traffic by regulation. See 19 C.F.R. §
10.41a(a).
The items at issue in the instant matter are purported to be pallets. Pallets are defined by
Merriam Webster as “a portable platform for handling, storing, or moving materials and
packages (as in warehouses, factories, or vehicles).” 3 Per your submission, the aluminum bases
of the subject items are platforms capable of holding materials and packages, and are capable of
being used in conjunction with tie down straps to secure their contents. Therefore, it is our
position the subject items are pallets.
Based upon review of the submission and information provided, the subject pallets 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 aluminum and are
expected to have a five-to-six-year life span. CBP has previously held that aluminum is
substantial. See HQ 340856 (Nov. 27, 2024) (finding that aluminum frames designed to
surround CB5 Carbon LED tiles were substantial). The subject pallets are suitable for and
capable of reuse following approved repairs and airworthiness certification, and they are rated
for an indefinite number of use cycles and continued reuse will be based on air worthiness
checks. Lastly, they are used in significant numbers in international commerce as more than 100
thousand pallets are integrated into the cargo airline industry worldwide per year. Thus, the
subject pallets qualify as an IIT per se. Accordingly, the pallets in the present case may be
released without the payment of duty or entry.
Cargo Nets
CBP has previously determined that cargo nets are accessories to IITs. See HQ 114446
(Oct. 29, 1998); HQ 116513 (Aug. 8, 2005).
3
Pallet, MERRIAM-WEBSTER.COM, https://www.merriam-webster.com/dictionary/pallet (last visited May 19, 2025).
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Based upon review of the submission and information provided, the subject cargo nets
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 high tenacity polyester and
steel and are expected to have a three-to-five-year lifespan. CBP has previously held that
polyester is substantial. See HQ 111955 (Oct. 31, 1991) (finding that 100 percent polyester bags
were substantial); H291037 (Jan. 9, 2018) (finding that temperature control containers
comprising fiber reinforced polyester are substantial). CBP has also previously held that steel is
substantial. 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). The subject cargo nets are suitable for and capable of reuse
following approved repairs, as they are rated for more than 750 use cycles based on continuing
air worthiness checks. Lastly, they are used in significant numbers in international commerce as
more than 100 thousand pallets are integrated into the cargo airline industry worldwide per year.
Therefore, the subject nets qualify for entry-free and duty-free treatment as accessories to IITs
pursuant to 19 C.F.R. § 10.41a(a)(2).
Tie Down Straps
CBP has previously determined that tie down straps are accessories to IITs. See HQ
116513 (Aug. 8, 2005).
Based upon review of the submission and information provided, the subject tie down
straps 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 high tenacity polyester
webbing and steel and are expected to have a three-to-five-year lifespan. The subject tie down
straps are suitable for and capable of reuse, as they are rated for more than 300 use cycles.
Lastly, these accessories are used in significant numbers in international commerce as more than
2 million tie-down straps are integrated into the cargo airline industry worldwide per year of
which Aeronet provides approximately 400,000. Therefore, the subject tie-down straps qualify
for entry-free and duty-free treatment as accessories to IITs pursuant to 19 C.F.R. § 10.41a(a)(2).
Replacement Parts
Section 19 C.F.R. § 10.41a(a)(2) provides as follows:
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 port director must be satisfied that the importer of the
repair component, accessory, or equipment had the declared intention at the time of
importation.
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Consistent with the foregoing regulation, CBP has held that repair parts for foreign-
produced instruments of international traffic would receive duty-free treatment if the remaining
conditions of the regulation were met. See HQ H131666 (Feb. 3, 2011) (holding that repair
component for steel crates may be entered duty free); HQ H022952 (Apr. 3, 2008) (holding that
steel upright posts used as repair components for steel racks may be entered duty-free); HQ
116622 (Mar. 13, 2006) (holding that repair components for tank containers may be entered
duty-free); see also, HQ 113339 (Mar. 10, 1995) and HQ 113135 (June 21, 1994) (holding that
repair components for refrigerated containers may be entered duty-free).
As such, upon entry of the spare parts, if Aeronet files a declaration with CBP that the
assorted components are to be used in the repair of the subject pallets and cargo nets, and the
port director where the assorted components are entered is satisfied that they were intended to be
imported as repair components for the subject pallets and cargo nets at the time of importation,
the assorted components may be entered without the deposit of duty.
We note that entry of the repair components would be required under 19 CFR § 10.41a(a)(2).
HOLDING:
The subject pallets qualify for treatment as instruments of international trade within the
meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(1)
The subject cargo nets qualify for treatment as accessories for instruments of
international trade within the meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(2)
The subject cargo nets qualify for treatment as accessories for instruments of
international trade within the meaning of 19 U.S.C. § 1322(a) and § 10.41a(a)(2)
The subject repair and accessory components qualify for treatment as accessories or
repair parts for instruments of international traffic within the meaning of 19 U.S.C. § 1322(a) and
§ 10.41a(a)(2).
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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