Newly Released CBP HQ Rulings Aug. 18

August 21, 2023 by Ben Perkins|Customs Rulings

The Customs Rulings Online Search System (CROSS) was updated Aug. 18 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):

H329443: Instruments of International Traffic; 19 U.S.C. § 1332(a); §§ 10.41a(a)(1), 10a(a)(2); N330179; Flexport LLC; Reusable Pallet Shipper

Ruling: The subject APS containers qualify as Instruments of International Traffic (IITs) within the meaning of 19 U.S.C. § 1322(a) and 19 C.F.R. § 10.41a(a)(1).

Issue: Do the subject reusable pallet shippers qualify for consideration as IITs?

Items: The APS reusable pallet shipper. The temperature-controlled containers are leased to pharmaceutical and life-science companies to move perishable products such as insulin, vaccines, and cancer medications across the world via international airfreight. The lessor will either deliver its containers to the customer’s location or the customer will pick up at a service center or hub location. The customers will lease the containers for an average of 5 to 30 days and then return the containers to a network locations or arrange for pick-up from a local facility. The containers are manufactured in Dongguan, China, and use vacuum insulated panel insulation with integrated internal phase change material refrigerants to provide thermal protection. The containers have run times of 120 hours and the user is able to select a temperature ranging from -20°C to +25°C. Both sizes of the APS containers are suitable for use on all wide-body aircraft, with regulatory approval for use on both lower and upper decks. The APS container has a lifespan of 7-12 years and there are currently 225 containers in circulation around the world. The subject containers will be used approximately 14 times per year.

Reason: To qualify as an IIT, an article used as a container or holder must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. CBP has previously determined that similar thermal containers qualify for treatment as IIT. The subject APS containers are substantial, capable of repeated use, and over two hundred are used in international traffic.

Ruling Date: Aug. 17, 2023