H346768

H346768 May 12, 2025 OT:RR:BSTC:CCR H346768 SEH CATEGORY: Carriers Tom Gould Tom Gould Customs Consulting, Inc. 16475 466th Pl SE North Bend, WA 98045 Via E-mail: tom@tomgouldcustoms.com 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. 1 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-ion2 rechargeable batteries and dual panel solar panels and have a five3 -year field service life. The IU versions of the BTD units are powered by LTC 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 2 and condition data. The devices bear unique serial numbers to allow for high “secuiurty [sic]” inventory control. Issue4 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 Treasury5 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). 3 (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]

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 Treasury5 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 d