Instruments of International Traffic

Instruments of International Traffic

Transportation vehicles and other tools used to bring goods into the United States. Instruments of international traffic include cargo vans, pallets, shipping tanks and textile fabric cores. Instruments of international traffic may be released into the U.S. without paying a tariff, subject to the posting of a customs bond.
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The taxpayer contends that the Foreign Commerce Clause, Customs Convention on Containers and Import-export Clause preclude imposition of state sales tax on the lease of instruments of international traffic that enter the United States under Customs bond and are used exclusively in foreign commerce.
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