August 20, 2008 CBP Bulletin Notice on Containers Entered as "Empty" That Contain Residual Chemicals
In the August 20, 2008 issue of the U.S. Customs and Border Protection Bulletin (Vol. 42, No. 35), CBP has published a notice proposing to modify a ruling on containers entered as "empty" that contain residual chemicals. Additionally, CBP proposes that this notice cover any other rulings raising this issue that may exist but have not been specifically identified.
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CBP states that any party who has received an interpretive ruling or decision (i.e., ruling letter, internal advice memorandum or decision or protest review decision) on the containers subject to this notice should advise CBP by September 19, 2008, the date that written comments on the proposed ruling are due.
Containers returned with chemical residues. The items are described as 40 steel containers which are 20 feet by eight feet by eight feet. Some of the containers are stainless steel, others are carbon steel. The containers are used to ship chemicals. In a proposed transaction, Dow Corning will fill one of these large containers with a chemical (e.g., ethyltrichlorosilane). The filled container will be exported to its subsidiary (e.g., in Barry, Wales). The Welsh plant will empty this container and use the chemical therein to produce products. The empty container will be imported back into the U.S., cleaned, refilled and re-exported. By virtue of the size of the container, it is nearly impossible to empty it completely. Accordingly, when the container is imported into the U.S., it will contain some residual of the original chemical and will not be completely empty.
Proposed modification. CBP is proposing to issue HQ H026715 in order to modify HQ 113129 and disallow the entry of the containers as empty. CBP now recognizes that the foregoing holding was inconsistent with CBP's treatment of similar commodities and contrary to CBP's mission in ensuring cargo safety and security.
CBP now proposes that the containers may continue to be considered "instruments of international traffic" but in order to be consistent with CBP's treatment of similar commodities, such as petroleum slops, and to ensure the safety and security of the transportation of such containers, these containers may not be entered, nor manifested as empty. In addition, CBP proposes that the chemical residue within the containers should be classified, entered and manifested.
With respect to the chemical residue within the containers, the ruling requestor originally offered to quantify the amount of chemicals upon importation and enter the chemical residue as American Goods Returned under HTSUS Chapter 9801. CBP has determined that this is the more accurate procedure for the residual chemicals to be entered. Since, the exact amount of the residual chemical may not be known at the time the advance cargo information is required to be transmitted, the importer may estimate the amount when providing that information to the carrier for reporting to CBP. Additionally, the same estimated amount should be used at the time of entry of the chemicals. If a more precise amount is obtained after arrival then the entry should be amended.
Proposed: containers may not be manifested, and entered, as empty containers; the chemical residue within the containers should be classified, entered, and manifested.
Current: containers may be entered as empty
August 20, 2008 CBP Bulletin (Vol. 42, No. 35) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2008/