Instruments of International Traffic (CBP Shipment Type)

This article is part of the Shipment Release Types Guide

This article is about the U.S. Shipment Type and empty-manifest workflow for reusable international traffic articles. For the Canadian Shipment Type, see Instruments of International Trade

Empty bins that can qualify as Instruments of International Traffic

Instruments of International Traffic, also called IIT, are qualifying reusable articles that move in international traffic and may be released by CBP without regular entry or duty when the applicable regulatory conditions are met. Under 19 U.S.C. 1322, vehicles and other instruments of international traffic may be excepted from customs laws to the extent and under the conditions set by regulation or instruction.

This article focuses mainly on 10.41b instruments of international traffic and how they are handled in BorderConnect when no standard ACE shipment functionality is available. 19 CFR 10.41b covers the clearance of serially numbered substantial holders or outer containers and allows qualifying holders and containers to be released without entry or payment of duty, subject to the conditions in that section.

Empty reusable bins, racks, pallets, tanks, or similar transport articles may qualify as instruments of international traffic when they are substantial, suitable for repeated use, and used in significant numbers in international traffic.

Video Tutorial

How to enter and submit IIT shipments in BorderConnect

10.41b overview

10.41b applies to certain serially numbered substantial holders or outer containers. These articles may be released without regular entry or payment of duty when they meet the conditions in 19 CFR 10.41b.

Unlike the standard ACE IIT/10.41a workflow, some 10.41b movements may not have standard shipment functionality in ACE. BorderConnect's Empty ACE Manifest guidance notes that there may be no standard ACE shipment functionality for certain instruments of international traffic under 19 CFR 10.41b, such as CHEP pallets or similar pooled shipping devices, and recommends creating an ACE Manifest without a shipment when there are no other shipments on the manifest.

Because of this, a 10.41b movement is commonly handled in BorderConnect as an empty ACE Manifest when the reusable articles are the only items being transported. The driver should then declare the instruments at the port and provide any supporting information requested by CBP.

10.41b requirements

Under 19 CFR 10.41b, the holders or containers must be serially numbered and must meet the conditions for release under that section. The regulation is separate from 19 CFR 10.41a, which covers lift vans, cargo vans, shipping tanks, skids, pallets, and similar instruments of international traffic.

Carriers should not decide on their own that a reusable article qualifies under 10.41b. The importer, owner, broker, or responsible party should provide instructions confirming that the articles are being handled under 10.41b and whether any supporting documentation, serial-number records, or bond information should travel with the driver.

BorderConnect workflow

In BorderConnect, 10.41b instruments are generally processed as an empty ACE Manifest when they are the only items on the truck or trailer. This is because there may be no standard ACE shipment functionality for certain 10.41b instruments in ACE.

1. Start a new ACE eManifest in BorderConnect.
2. Enter the trip, truck, trailer, driver, and port information.
3. Do not create a PAPS shipment for the 10.41b instruments.
4. Do not apply the standard ACE IIT exemption unless the movement is specifically being handled as a 10.41a IIT movement.
5. Save the ACE eManifest without shipment records.
6. Review the trip details and confirm there are no shipment bills attached.
7. Click Sync with CBP to transmit the empty ACE Manifest.
8. Wait for the ACE Manifest to be accepted by CBP.
9. Make sure the driver is prepared to verbally declare the 10.41b instruments at the port.

BorderConnect's Empty ACE Manifest article explains that an Empty ACE Manifest is transmitted to CBP without shipment bills attached and that, after the empty trip is accepted, the driver can proceed to the border.

Setting IIT status on an ACE Manifest in BorderConnect

The screenshot above shows the standard IIT status area in BorderConnect, but it should not be used for a 10.41b empty-manifest movement unless the carrier has been specifically instructed to use the standard ACE IIT functionality. For a 10.41b-only move with no other freight, the recommended process is normally an empty ACE Manifest with no shipment and no IIT exemption applied.

10.41a CHEP pallets

CHEP pallets and similar pooled reusable pallets may qualify as instruments of international traffic under 19 CFR 10.41a when they are being used as reusable articles in international traffic and meet the normal IIT requirements. 19 CFR 10.41a specifically includes skids, pallets, shipping tanks, lift vans, cargo vans, and similar articles as instruments of international traffic when the regulatory conditions are met.

CHEP describes its pallet system as a reusable pooling model where pallets, IBCs, and containers are provided on a rental basis and reused in a closed-loop system. Even when CHEP pallets are treated as 10.41a by the responsible party, there may be no practical ACE shipment functionality for the carrier to file them as a shipment in BorderConnect.

For empty CHEP pallets moving by themselves, process the trip in BorderConnect as an empty ACE Manifest with no PAPS shipment and no IIT exemption applied, unless the importer, owner, broker, or CBP specifically instructs otherwise. BorderConnect guidance for empty ACE Manifests notes that certain instruments of international traffic, including CHEP pallets or similar pooled shipping devices, may be handled by creating an ACE Manifest without a shipment and having the driver declare the instruments at the port when no other shipments are present.

To process empty CHEP pallets in BorderConnect:

1. Start a new ACE eManifest in BorderConnect.
2. Enter the trip, truck, trailer, driver, and port information.
3. Do not create a PAPS shipment for the CHEP pallets.
4. Do not set the standard IIT exemption on the truck or trailer unless specifically instructed.
5. Save the manifest as a trip with no shipments.
6. Click Sync with CBP to transmit the empty ACE Manifest.
7. Wait for the manifest to be accepted.
8. Instruct the driver to declare the empty CHEP pallets to CBP at the booth and provide CHEP paperwork, movement instructions, or bond information if requested.

If the truck or trailer also contains commercial freight, create the normal ACE shipment for that freight and follow the broker's or CBP's instructions for the CHEP pallets. Do not use an empty ACE Manifest when regular commercial cargo is also being transported.

Carrier bond vs importer bond

A carrier bond is generally tied to the carrier's responsibilities when transporting goods or equipment under CBP control. For example, a carrier or other party may maintain a bond connected to transportation, custody, or instruments of international traffic obligations depending on its CBP activity and authorization.

An importer bond is generally tied to the importer of record's responsibility to comply with import requirements and pay duties, taxes, fees, liquidated damages, or other amounts owed to CBP. Customs bond guidance commonly describes an importer bond as a guarantee that imported goods will have the correct duties and taxes paid, while carrier and custodian bonds are used for parties transporting or holding goods under CBP control.

For IIT purposes, 19 CFR 113.66 states that a bond for control of containers and instruments of international traffic must be a continuous bond and must contain the required bond conditions. The bond principal agrees to report diversion or withdrawal from IIT use, enter the instrument unless exempt, and pay duty if required.

In practical BorderConnect terms, the carrier should confirm whether the reusable articles are covered by the carrier's bond or the importer's/owner's bond before the truck arrives. If the driver is asked at the port, they should be able to identify who is responsible for the IIT bond coverage or provide the paperwork supplied by the responsible party.

At the border

For 10.41b-only moves processed as an empty ACE Manifest, the driver should be ready to explain that the truck is carrying qualifying reusable instruments or substantial holders being declared at the port. The driver should not present the movement as a regular PAPS shipment unless a broker or CBP has instructed that a regular entry is required.

CBP may request supporting information such as bills of lading, serial-number lists, equipment descriptions, ownership information, CHEP or pool documentation, or bond details. If the truck also has commercial freight, the driver must still follow normal ACE, release, and document instructions for that freight.

When not to use empty ACE

Do not use the empty ACE Manifest process when regular commercial freight is being transported. If the truck or trailer contains freight that needs PAPS, Section 321, in-bond, or another ACE shipment type, create the applicable shipment in BorderConnect and follow the normal ACE eManifest process.

Do not treat a movement as 10.41b or empty ACE simply because the items are empty, reusable, or low value. The owner, importer, broker, or CBP should confirm the treatment, especially when the articles are being sold, repaired, processed, consumed, or moved for domestic point-to-point use in the United States.

Common mistakes

• Creating a PAPS shipment for qualifying 10.41b instruments when the movement should be handled as an empty ACE Manifest.
• Applying the standard ACE IIT exemption to a 10.41b empty-manifest movement when there is no instruction to use the 10.41a IIT functionality.
• Using an empty ACE Manifest when regular commercial freight is also loaded.
• Treating CHEP pallets as a normal PAPS shipment when the responsible party instructed the carrier to handle them as empty reusable instruments.
• Assuming all empty pallets, racks, totes, or containers qualify under 10.41b.
• Sending the driver without CHEP, owner, broker, or bond instructions.
• Confusing U.S. Instruments of International Traffic with Canadian Instruments of International Trade.

Related guides

• Shipment Types for ACE and ACI eManifest
• ACE eManifest Software User Guide
• Creating and Submitting a New ACE Manifest
• Empty ACE Manifest
• PAPS Shipment Type
• Instruments of International Trade
• U.S. Customs and Border Protection
• Importer Bond
• Carrier Bond