H350299

H350299 June 26, 2026 OT:RR:BSTC:CCR H350299 MF CATEGORY: Carriers Hongyu Song Specialist, Customs Brokerage Division Nippon Express USA, Inc. 230-19 International Airport Center Blvd. Jamaica, NY 11413 RE: Instruments of International Traffic; 19 U.S.C. § 1332(a); 19 C.F.R. § 10.41a(a)(1), Nippon Express USA Inc.; Collapsible and Non-collapsible Boxes and Caps. Dear Mr. Song: This is in response to your June 30, 2025, ruling request on behalf of Nippon Express USA Inc. (“Nippon”). In your request you inquire whether “collapsible and non-collapsible boxes and caps” 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 the (1) “collapsible boxes and caps,” and (2) “non-collapsible boxes and caps.”1 GPS refers to the first subject item as “boxes.” Upon review, the subject boxes 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. 2 The subject items are designed to transport automotive fastener parts from a Japan-based corporation, Sugiura Seisakusho Co. (“Sugiura”) through international traffic to the importer, Sunright America, Inc. (“Sunright”) in the United States and be returned empty to Japan where Sugiura will subsequently refill the items and export them as part of an ongoing closed loop process. Nippon intends to ensure the timely departure of the subject items through a system of invoice linkage, tracking, and return verification. Notably, each module number is listed on the invoice and physically marked on the container, allowing traceability with all invoice information being managed digitally. The associated tracking process comprises five steps: 1. Sugiura issues and emails invoices to Sunright. 2. Sunright stores all invoice data and tracks container movements. 3. The logistics provider sends an entry summary to Sunright after customs clearance. 4. Sunright informs Sugiura of all invoice numbers that have been cleared through customs. 5. Sunright prepares empty containers for return to Japan. Finally, upon the return of the empty containers, Sugiura cross-references the module numbers with management sheets to confirm proper returns. The collapsible crates comprise a pallet-like base that can be manipulated by a forklift from two sides, and four collapsible sides which when erected can lock into place and form a cube that can be closed with the placement of a cap. The subject items can be stacked atop each other in both their collapsed and erected configurations. The non-collapsible boxes are containers which are loaded with automotive fastener parts and in turn loaded into the collapsible boxes. With respect to the subject items, their frames are constructed of polypropylene. The dimensions of the subject items are as follows: • Collapsible Boxes: 1190mm x 1127mm x 741mm • Caps for Collapsible Boxes: 1150mm x 1100mm x 8mm • Non-collapsible Boxes: 355mm x 275mm x 90mm • Caps for non-collapsible boxes: 355mm x 275mm x 90mm The subject collapsible boxes and their caps (where visible) are depicted below in their erected, erected stacked, and collapsed stacked states, respectively: 3 Box with Sides Erected Box with Sides Erected and Cap 4 Boxes with Sides Erected and Stacked 5 The subject non-collapsible boxes and their lids are depicted below: Box with Sides Collapsed and Stacked Orange and Blue non-collapsible box and associated lid. 6 The smaller non-collapsible boxes are used together with the collapsible boxes. The non-collapsible boxes are filled with imported products and are then loaded into the larger unit boxes until it contains 96 non-collapsible boxes. Nippon states that both types of boxes and their caps are used about two to three times per year. The average lifespan of the collapsible and non-collapsible boxes and their lids is five years. Approximately fifteen hundred (1500) sets of collapsible boxes and their caps and one hundred and thirty-nine thousand (139,000) non-collapsible boxes and thirty thousand (30,000) of their associated caps are currently in use. Nippon believes these boxes are manufactured in Japan, and according to the documents provided, the subject cubes in circulation at present have been formally entered by GPS under Subheadings 3923.10.2000, 3923.10.9000, and 3923.50.0000, HTSUS, with applicable duties paid. ISSUE: 1. Whether the subject collapsible boxes and their caps 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 non-collapsible boxes and their caps 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 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. 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). 7 (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 regulatio

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. 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). 
 7 (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 t