H350250

H350250 September 2, 2025 OT:RR:BSTC:CCR H350250 MF CATEGORY: Carriers Derrick Kyle, Esq. Torres Trade Law 1717 K Street, NW Washington, DC 20006 RE: Instruments of International Traffic; 19 U.S.C. § 1332(a); § 10.41a(a)(1), GPS Global Pallet Services, LLC; Foldable Crates. Dear Mr. Kyle: This is in response to your July 8, 2025, ruling request on behalf of GPS Global Pallet Services, LLC (“GPS”). In your request you inquire whether “foldable crates” 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 request1 and supplements thereto. The subject item is the GPS [ ] model of “foldable crate.” GPS refers to the subject item as crates. Upon review, the subject crates appear analogous to items that CBP has previously considered as variants of pallets when analyzing their status as IITs. As discussed below, we examine the subject merchandise in light of our prior treatment of pallet cubes. 1 You have asked this office for confidential treatment of bracketed information. CBP Regulations at 19 C.F.R. § 177.2(b)(7) provide that the requester of a ruling from our office may ask that privileged or confidential commercial or financial information supplied for purposes of preparing the requested ruling not be disclosed. Such requests will be considered if the information is clearly identified and the reasons for requesting that information not be disclosed are provided. If this office receives a Freedom of Information Act request for your submission, regulations at 6 C.F.R. § 5.12, et seq., regarding the disclosure of business information provide that the submitter of business information will be advised of receipt of a request for such information whenever the business submitter has in good faith designated the information as commercially or financially sensitive information. We accept your request for confidential treatment as a good faith request. 1 The subject items are designed to transport synthetic and natural rubber bales through international traffic and be returned empty to the United States from [ ] and [ ] for distribution to GPS’s clients who will subsequently [ ]. GPS intends to ensure the timely departure of their foldable crates by accounting for them on a “volume basis” which will compare the exact number of foldable crates imported during a twelve-month period with the exact number of cubes exported. GPS acknowledges that any item retained domestically for more than 365 days must be entered with applicable duty paid. The subject items are adapted to the lengths and widths of twenty-foot by forty-foot ocean shipping containers to optimize loading and prevent any displacement during transport. The foldable crates comprise a pallet-like base that can be manipulated by a forklift, and four collapsible sides which when erected can lock into place and form a cube that is open with an interior that is accessible from above. The subject items can be stacked atop each other in both their collapsed and erected configuration. With respect to the subject items, their frames are constructed of galvanized steel. The dimensions of the subject items are as follows • External: [ ]mm x [ ]mm x [ ]mm • Internal: [ ]mm x [ ]mm x [ ]mm • Collapsed: [ ]mm x [ ]mm x [ ]mm The subject cubes are depicted below in their erected, collapsed, collapsed stacked, and erected stacked states, respectively: Foldable Crate with Sides Erected 2 Foldable Crate with Sides Collapsed Foldable Crate with Sides Collapsed Stacked 3 Foldable Crate with Sides Erected Stacked On Forklift GPS states the cubes are used about 1.5 times per year. The average lifespan of the cubes is around 16 years. Approximately [ ] of these cubes are currently in use. According to the documents provided, the subject cubes in current circulation have been formally entered by GPS under Subheading 8609.00.0000, HTSUS, with applicable duties paid. GPS USA has always imported its foldable crates under 8609.00.0000 and paid the applicable duties. However, GPS USA does not have visibility or control of how their customers import full foldable crates or whether the customers treat the foldable crates as IITs upon importation. ISSUE: 1. Whether the subject foldable crates qualify for consideration as IIT within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). 4 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 Treasury2 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 2 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). 5 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 (Jun

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 Treasury2 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 core