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Instruments of International Traffic (CBP Shipment Type)

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🔖 This article is part of the Shipment Release Types Guide

This article is about the U.S. Shipment Type. For the Canadian Shipment Type, see Instruments of International Trade
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How to enter and submit IIT shipments in BorderConnect.
Empty bins which can qualify as Instruments of International Traffic

Instruments of International Traffic (IIT; sometimes written as IITT) refers to certain reusable transportation articles that CBP allows to be admitted/released without entry and without duty under statutory authority in 19 U.S.C. § 1322(a) and implementing regulations (including 19 CFR § 10.41a and 19 CFR § 10.41b).[1][2][3][4]

In the ACE/Truck eManifest context, IIT (often referenced as “10.41a”) is a U.S. Shipment Type used to identify shipments consisting of qualifying reusable articles such as skids/pallets, containers/holders, and similar instruments used in international traffic.[5][6]

10.41a vs 10.41b (what’s the difference?)

Both 10.41a and 10.41b relate to IIT/IITT, but they are used differently:

10.41a (“IIT” / “10.41a”)
This is the primary regulation that designates certain classes of reusable articles as instruments of international traffic and sets the general criteria/controls for IIT treatment, including the requirement for a bond on CBP Form 301 containing the IIT bond conditions in 19 CFR § 113.66 when required for release.[7][8]
10.41b (“serially numbered substantial holders/outer containers”)
This regulation focuses on clearance/identification controls for substantial holders/outer containers (including serial-numbering/marking rules). It also includes a specific program under 10.41b(b) for certain reusable shipping devices arriving from Canada or Mexico (including racks, holders, pallets, totes, boxes and cans) that—if an application is approved—may be released without entry and without the devices being serially numbered or marked, provided required procedures are followed (including placing a notation on the vehicle/vessel manifest).[9][10][11]

Important: “CHEP pallets” is a common trade nickname for pooled/returnable pallets. If your pallets/devices are being handled under an approved 10.41b(b) program (rather than being declared as 10.41a IIT on the trip).

Qualification criteria (IIT generally)

To qualify as IIT under CBP rules, the article generally must be:

  • Suitable for and capable of repeated use and used as a container/holder in international traffic; and
  • Used in significant numbers in international traffic; and
  • Used within the permissible scope CBP allows for IIT/IITT movements (loaded and/or empty use cases depending on the article and authority).[12][13]

Goods properly admitted/released as IIT are generally excepted from entry and duty as authorized under 19 U.S.C. § 1322(a), subject to CBP’s terms/conditions and any applicable limitations (for example, when an item is diverted from international traffic or used outside authorized purposes).[14][15]

10.41b(b) reusable shipping devices (Canada/Mexico program)

Under 19 CFR 10.41b(b), certain reusable shipping devices arriving from Canada or Mexico (including racks, holders, pallets, totes, boxes and cans) may be released without entry/payment at time of arrival and without serial numbering/marking, but only when the importer/agent has an approved application on file and meets the program requirements (including reporting/recordkeeping and bond requirements).[16]

The regulation also requires that a notation (or similar) appear on the vehicle or vessel manifest indicating that the shipping devices transported are exempt from serial numbering/marking pursuant to an approved 10.41b(b) application.[17][18]

ACE eManifest reporting note for 10.41b(b) (“CHEP”) movements

ACE Truck eManifest “IIT status” is typically used for 10.41a IIT scenarios. For 10.41b(b) reusable shipping devices it's recommended to create the ACE Manifest as an empty as opposed to adding an IIT as ACE only allows for the declaring of IITs covered under a 10.41a, and not a 10.41b.

  • If the conveyance is carrying only 10.41b(b) reusable shipping devices (i.e., no other cargo shipments), it is common practice to transmit the ACE trip as an “empty” manifest/trip (no shipment bills).[19]
  • If there are additional cargo shipments on the same trip (e.g., PAPS), transmit those shipments normally, and also ensure the required 10.41b(b) notation is included/communicated for the reusable devices as applicable.[20]

Declaring IITs in ACE eManifest

Instruments of International Traffic (qualifying under a 10.41a) are required to be reported on an ACE eManifest. To report an IIT shipment the carrier will need to set the IIT status on either the truck or trailer, depending on where the IITs are loaded. This tells Customs there are IITs aboard. The carrier will not create an ACE shipment to report the IITs, they must be reported using the IIT status only.[21] The example below shows how to report IIT shipments using BorderConnect's ACE eManifest software.

When setting the IIT status, the carrier will need to indicate whether the IITs are covered under the importer's bond or the carriers, as well as whether IITs are the only thing loaded or there are other shipments aboard. (e.g. PAPS) While it is more common for IITs to be covered under the importer's bond, the carrier must still ensure that the importer has an active bond covering the IITs. It is also advisable for the carrier to obtain the bond number from the importer and ensure that the driver is aware of it.

At the border, the Customs officer will not typically require any additional paperwork to process the IIT shipment, although the driver may be asked to provide bills of lading or the IIT bond number at the officer's discretion.

References

  1. ↑ 19 U.S.C. § 1322(a) (Cornell Law School): https://www.law.cornell.edu/uscode/text/19/1322
  2. ↑ 19 CFR § 10.41a (eCFR): https://www.ecfr.gov/current/title-19/chapter-I/part-10/section-10.41a
  3. ↑ 19 CFR § 10.41b (eCFR): https://www.ecfr.gov/current/title-19/chapter-I/part-10/section-10.41b
  4. ↑ CBP Guidance – Instruments of International Traffic (Feb 26, 2020): https://www.cbp.gov/document/guidance/instruments-international-traffic
  5. ↑ 19 CFR § 10.41a(a)(1) (examples such as skids and pallets; eCFR): https://www.ecfr.gov/current/title-19/chapter-I/part-10/section-10.41a
  6. ↑ CBP Guidance – Instruments of International Traffic (criteria and examples): https://www.cbp.gov/document/guidance/instruments-international-traffic
  7. ↑ 19 CFR § 10.41a (eCFR): https://www.ecfr.gov/current/title-19/chapter-I/part-10/section-10.41a
  8. ↑ 19 CFR § 113.66 (bond conditions for containers/IIT; Cornell LII): https://www.law.cornell.edu/cfr/text/19/113.66
  9. ↑ 19 CFR § 10.41b(b) (eCFR): https://www.ecfr.gov/current/title-19/chapter-I/part-10/section-10.41b
  10. ↑ Federal Register (Mar 1, 1996) – added 10.41b(b) program text and required manifest notation (61 FR 7987–7990): https://www.govinfo.gov/content/pkg/FR-1996-03-01/pdf/FR-1996-03-01.pdf
  11. ↑ Federal Register (May 23, 2002) – confirms 10.41b(b) reusable shipping devices arriving from Canada/Mexico are excepted from entry requirements (T.D. 02–28 / FR Doc 02–12938): https://www.govinfo.gov/content/pkg/FR-2002-05-23/pdf/02-12938.pdf
  12. ↑ 19 CFR § 10.41a (eCFR): https://www.ecfr.gov/current/title-19/chapter-I/part-10/section-10.41a
  13. ↑ CBP Guidance – Instruments of International Traffic: https://www.cbp.gov/document/guidance/instruments-international-traffic
  14. ↑ 19 U.S.C. § 1322(a) (Cornell Law School): https://www.law.cornell.edu/uscode/text/19/1322
  15. ↑ CBP Guidance – Instruments of International Traffic: https://www.cbp.gov/document/guidance/instruments-international-traffic
  16. ↑ 19 CFR § 10.41b(b) (eCFR): https://www.ecfr.gov/current/title-19/chapter-I/part-10/section-10.41b
  17. ↑ 19 CFR § 10.41b(b) (required manifest notation; eCFR): https://www.ecfr.gov/current/title-19/chapter-I/part-10/section-10.41b
  18. ↑ Federal Register (Mar 1, 1996) – same requirement as adopted in the final rule (61 FR 7987–7990): https://www.govinfo.gov/content/pkg/FR-1996-03-01/pdf/FR-1996-03-01.pdf
  19. ↑ Manifest: Trucks User Guide (CBP) – describes the electronic truck manifest process: https://www.cbp.gov/sites/default/files/documents/ACE%20Truck%20Manifest%20User%20Guide.pdf
  20. ↑ 19 CFR § 10.41b(b) (manifest notation requirement; eCFR): https://www.ecfr.gov/current/title-19/chapter-I/part-10/section-10.41b
  21. ↑ Automated Commercial Environment Review of Shipment Release Types: Trucks https://www.cbp.gov/sites/default/files/documents/shipment_types_3.pdf
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