H350301

H350301 April 17, 2026 OT:RR:BSTC:CCR H350301 ACA CATEGORY: Carriers Steven L. Sanders Sanders Brokerage Services LLC 1050 B Street Bldg B STE 1 Blaine, WA 98231 RE: Instruments of International Traffic; 19 U.S.C. § 1322(a); 19 C.F.R. §§ 10.41a(a)(1), 10.41a(a)(2); N351056; Saginaw Bakeries; Steel Baskets, Plastic Trays, and Plastic Wheeled Dollies; Accessories Dear Mr. Sanders: This is in response to your July 7, 2025, ruling request on behalf of Saginaw Bakeries. In your request you inquire whether certain plastic trays, steel baskets, and plastic wheeled dollies qualify as “instruments of international traffic” (“IIT”) within the meaning of 19 U.S.C. § 1322(a). Our determination is set forth below. Facts The following facts are taken from your ruling request and supplemental documents submitted on behalf of your client, Saginaw Bakeries. The subject containers are: (1) steel baskets, (2) plastic trays, and (3) plastic wheeled dollies (collectively “subject materials”). Saginaw Bakeries uses these subject materials in their daily shuttle services to move pastries from their manufacturing facility in Surrey, British Columbia, Canada, to numerous 7-Eleven Stores in the Pacific Northwest, including within the United States. Saginaw Bakeries produces a variety of fresh bakery products, including donuts, cookies, and muffins. Daily, these bakery products are placed in the steel baskets. Four of the steel baskets are then placed in a plastic tray, which is then wrapped and labeled, before being stacked onto the plastic wheeled dollies. The dollies are used to transport the bakery products on and off the shuttles. Each individual component of the subject materials travels this route on average twice a week. According to Saginaw Bakeries, approximately 4,000 steel baskets, 1,000 plastic trays, and 60 plastic wheeled dollies are used in a single day. Daily, the subject materials and bakery products are loaded onto a trailer in Surrey, British Columbia, in Canada and delivered to 7-Eleven’s central distribution center (“CDC”) in Auburn, Washington, in the United States. The CDC makes the deliveries to the individual 7- Eleven stores by leaving the subject materials at the stores and picking up the prior day’s shuttle service materials. Then the CDC returns the used subject materials to the center, where Saginaw Bakeries loads them onto the truck to return to their facilities in Surrey, British Columbia, Canada. The subject materials are then cleaned, sanitized, and put back into the production cycle. The subject materials are manufactured in the United States and purchased from Wirefab, Inc., and Buckhorns, Inc. Saginaw Bakeries imports the subject materials into Canada, where duty is paid. The steel baskets are 2.063 inches H, with the top of the basket 10.125 L x 12.5 W and the bottom of the basket 7.84 L x 9.45 W. The plastic tray’s external dimensions are 28.3 inches L x 22 inches W x 4.8 inches H, with a capacity volume of 30 cubic feet. Finally, the plastic dollies are 28 inches L x 23 inches W x 5.4 inches H, with a tare weight of 11 pounds. The plastic trays and dollies are made of HDPE and can handle loads up to 500 pounds. Each component of the subject materials has a lifespan of 8-10 years and are involved in approximately 104 shipments per year. Issues 1. Whether the subject steel baskets, plastic trays, and plastic wheeled dollies qualify for consideration as IITs within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1). 2. Whether the subject plastic trays and plastic wheeled dollies qualify for consideration as IIT accessories within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(2). Law and Analysis Pursuant to 19 U.S.C. § 1401(c), the word “merchandise” is defined as “goods, wares, and chattels of every description, and includes merchandise the importation of which is prohibited, and monetary instruments as defined in section 5312 of Title 31.” 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. 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 Treasury1 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). 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 such extent and subject to such terms and conditions as 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. 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 (June 18, 1971); 99 Treas. Dec. 533, No. 56247 (Aug. 26, 1964).2 For certain subject items we also consider whether they may be classified as accessories to IITs under 19 C.F.R. §10.41a(a)(2). Pursuant to 19 C.F.R. § 10.41a(a)(2), (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 warehouse for consumption without the deposit of duty if the person making the entry or withdrawal from warehouse 

Pursuant to 19 U.S.C. § 1401(c), the word “merchandise” is defined as “goods, wares, and chattels of every description, and includes merchandise the importation of which is prohibited, and monetary instruments as defined in section 5312 of Title 31.” 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. 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 Treasury1 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). 

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 ent