H344505

H344505 May 30, 2025 OT:RR:BSTC:CCR H344505 KAM CATEGORY: Carriers 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 shipments12 , with an additional 14,600 expected at the end of this year. 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 pallet14 (1), sleeve (2), plastic tray (3), lid (4), packing (5), and polypropylene banding (6). 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, 17 Polyethylene, Polypropylene, High-Density Polyethylene, or Thermoplastic Polyethylene. 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 Treasury20 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 

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 Treasury20 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: Lif