HQ 109634: Beer kegs as instruments of international traffic (IIT)

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                       HQ 109634

                                    August 11, 1988



            BOR 7-07-CO:R:P:C  109634 BEW

            CATEGORY:  CARRIERS

            Mr. James Burghart
            President
            A. Burghart Shipping Co., Inc.
            Newark International Plaza
            Newark, New Jersey 07114

            RE:  Beer kegs as instruments of international traffic (IIT)

            Dear Mr. Burghart:

                 This is in reference to your telex of May 11, 1988, and
            your memorandum June 27, 1988, in which you ask that we
            classify certain beer kegs as instruments of international
            traffic (IIT).

            FACTS:

                 The beer kegs are of substantial stainless steel
            construction and are capable of repeated use.  They will be
            used to transport beer from the Netherlands to the United
            States moving under an IIT bond.  After emptying, the kegs will
            be exported to Heineken Brewery for cleaning and reuse.  The
            ports of entry will be New York/New Jersey.

                 The kegs will have their own unique serial numbers, and
            will hold 13.2 and 15.5 gallons each.  There will be a total of
            145,112 of the smaller kegs and 3,249 of the larger kegs.

            ISSUE:

                 Whether the beer kegs may be brought into the United
            States as instruments of international traffic.

            LAW AND ANALYSIS

                 Section 322(a), Tariff Act of 1930, as amended (19 U.S.C.
            1322(a)), provides that "[v]ehicles and other instruments of
            international traffic, of any class specified by the Secretary
            of the Treasury, shall be granted the customary exceptions from
            the application of the customs laws to the extent and subject













            to such terms and conditions as may be prescribed in
            regulations or instructions of the Secretary of the Treasury."



























































                                         - 2 -


                 The Customs Regulations issued under the authority of
            section 322(a) are in section 10.41a (19 CFR 10.41a).
            Paragraph (a)(1) of section 10.41a designates as instruments of
            international traffic lift vans, cargo vans, shipping tanks and
            certain other named articles and states that other articles may
            be designated as instruments of international traffic by the
            Commissioner of Customs in decisions to be published in the
            weekly Customs Bulletin.  These instruments of international
            traffic may be released without entry or the payment of duty,
            subject to the provisions of section 10.41a

                 To qualify as an "instrument of international traffic"
            within the meaning of section 322(a), Tariff Act of 1930, as
            amended (19 U.S.C. 1322(a)), and the regulations issued
            thereunder (19 CFR 10.41a et seq.), an article must be used as
            a container or holder.  The article must be substantial,
            suitable for and capable of repeated use, and used in
            significant numbers in international traffic.

                 We find that the beer kegs under consideration may be used
            as a container or holder, that they are substantial, suitable
            for and capable of repeated use, and that they are used in
            significant numbers in international traffic.  We further find
            that the beer kegs under consideration are similar to beer kegs
            which were designated as instruments of international traffic
            in Treasury Decision 66-15 (stainless steel half barrels and
            quarter barrel beer kegs, imported containing beer, used
            primarily after importation for onward transportation and for
            dispensing beer, and not for storing or aging the beer), and
            are similar to certain beer kegs which were designated as
            instruments of international traffic in Treasury Decision 68-81
            (stainless steel beers kegs of a capacity of 9.2 gallons more
            or less, sometimes referred to as 1/3 barrel kegs of the same
            type and used in the same way as described in 66-15).

            HOLDING:

                 The beer kegs under consideration qualify for treatment as
            instruments of international traffic and may be released under
            the procedures set forth in section 10.41a, Customs
            Regulations.

                                              Sincerely,



                                              B. James Fritz
                                              Chief
                                              Carrier Rulings Branch