July 17, 2009 CBP Bulletin Notice on Containers Entered as "Empty" That Contain Residual Chemicals
In the July 17, 2009 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 43, No. 28), CBP published a notice modifying one ruling as follows:
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Modification of ruling.CBP is modifying one ruling regarding containers entered as "empty" that contain residual chemicals; in addition, this notice covers any rulings raising this issue which may exist but have not been specifically identified.
According to CBP, containers with cargo, regardless of the amount of cargo, will need to be manifested and entered in compliance with all customs laws. This action is effective for containers arriving in the United States on or after August 16, 2009.
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 United States, 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 United States, it will contain some residual of the original chemical; it will not be completely empty.
CBP is issuing 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 determines 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. CBP now takes the position that the chemical residue within the containers must 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 determines 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.
Additional note: With the publication of the final ruling, CBP clarifies that "empty" means completely empty, there is no "de minimis" allowance.
New: such containers may not be manifested, and entered, as empty containers; the residue within the containers must be classified, entered, and manifested.
Previous: containers with residue could be entered as empty.
(See ITT's Online Archives or 08/26/08 news, 08082655, for BP summary of proposed HQ H026715.)
July 17, 2009 CBP Bulletin (Vol. 43, No. 28) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/