HQ 089574
SEPT 27 1991
CLA-2:CO:R:C:M 089574 JAS
Mr. Melvin S. Schwechter
Coopers & Lybrand
1301 Avenues of the Americas
New York, New York 10019-6013
RE: Downhole Submersible Oil Pump and Gas Diffuser/Separator;
Downhole String Components; Filtering Machinery for Liquids
Dear Mr. Schwechter:
In your letter of May 30, 1991, on behalf of Ramco Alnas
Limited, Aberdeen, Scotland, you inquire as to the tariff
classification and basis of appraisement of oil well pumping
apparatus from the Soviet Union. Our ruling follows. The
appraisement issue will be addressed in separate correspondence.
FACTS:
The A400-2C electric submersible pumping unit consists of a
centrifugal-action pump, electric motor with hydroprotector, and
a gas separator or diffuser. You state the gas separator is an
accessory item but will be imported with the pump and motor.
The hydroprotector incorporates two elastomer bags and functions
to protect the motor fluids from contamination. The gas
separator is designed to be fitted between the pump intake and
the pump module. It functions in wells with high free-gas
content to separate gases from the liquids by centrifugal action.
It vents the gas into an outer ring and directs the de-gassed
fluids into the pump module. This separator effectively protects
against gas locks and pump cavitation and insures efficient
pumping. Cables, switchboard and transformer will be sourced
domestically.
ISSUE:
Whether the pump module and gas diffuser are classifiable
together or separately.
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LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) in accordance
with the General Rules of Interpretation (GRIs). GRI 1 states in
part that for legal purposes, classification shall be determined
according to the terms of the headings and any relative section
or chapter notes, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6.
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the Customs Cooperation
Council's official interpretation of the Harmonized System.
While not legally binding on the contracting parties, and
therefore not dispositive, the ENs provide a commentary on the
scope of each heading of the Harmonized System and are thus
useful in ascertaining the classification of merchandise under
the System. Customs believes the notes should always be
consulted. See T.D. 89-80.
Relevant ENs at p. 1160 include within heading 84.13, PUMPS
FOR LIQUIDS, WHETHER OR NOT FITTED WITH A MEASURING DEVICE,
centrifugal pumps. In such pumps liquids are taken in axially by
means of an impeller with the resulting centrifugal action
forcing the liquid outward to the periphery of an annular
casing. This casing is sometimes fitted with diffuser vanes to
transform the kinetic energy of the fluid into high pressure.
The notes indicate that centrifugal pumps may be driven by an
electric or internal combustion motor or turbine, and that the
group includes submersible pumps.
In the case of pumps fitted or designed to be fitted with
measuring devices (subheadings 8413.11 and 8413.19), the pump and
measuring device when presented together are classified together.
However, there is no indication from the cited ENs or from other
available evidence that gas diffusers of the type here are
intended to be classified with pumps and motors of heading 8413
even if presented together.
HOLDING:
Under the authority of GRI 1, the pump module of the A400-2C
pumping unit is provided for in heading 8413. It is classifiable
in subheading 8413.70.2004, HTSUSA, other centrifugal submersible
pumps. The column 2 rate of duty is 35 percent ad valorem.
Under the authority of GRI 1, the gas separator or diffuser
is provided for in heading 8421, filtering or purifying machinery
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and apparatus for liquids or gases. It is classifiable in
subheading 8421.29.00, HTSUSA, other filtering and purifying
machinery and apparatus for liquids. The column 2 rate of duty
is 35 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division