H348097

H348097 July 2, 2025 OT:RR:BSTC:CCR H348097 MF CATEGORY: Carriers 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. 1 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. 3 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 Treasury1 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). 4 (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. 712 -159, Cust. B. & Dec. 296 (June 18, 1971); 99 Treas. Dec. 533, No. 56247 (Aug. 26, 1964). 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 wareh

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 Treasury1 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). 4 

 (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