CLA-2OT:RR:CTF:TCM: H155596 ERB
Mr. Daniel McKenzie
TYCROP Manufacturing Ltd.
9880 McGrath Road
Rosedale, British Columbia V0X 1X0
Canada
RE: Modification of NY N049598; Tariff classification of a mobile pumper from Canada
Dear Mr. McKenzie:
U.S. Customs and Border Protection (CBP) issued you New York Ruling Letter (NY) N049598 on February 3, 2009. NY N049598 pertains to the tariff classification under the Harmonized Tariff Schedule of the United States, (HTSUS) of the Mobile FRAC Pumper. We have since reviewed NY N049598 and find it to be in error with respect to the tariff classification component of that ruling, described in detail herein. We are therefore modifying NY N049598.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by section 623 of Title VI, notice of the proposed action to modify the aforementioned ruling was published in the Customs Bulletin, Vol. 50, No. 4, on January 27, 2016. No comments were received in response to the proposed notice of action.
FACTS:
NY N049598 states the following, in relevant part:
The purpose of the FRAC Pumper is to pump propant, at high-pressure, into an oil well to fracture and stimulate hydrocarbons and create a shell for pumping oil from the well. The FRAC Pumper’s main components include one or two large radiators, an engine, which you state in your ruling request is in the 2250 to 2500 HP range, a matching torque converter and transmission and the FRAC pump, itself, all connected by drive shafts. The FRAC Pumper is its own power source as it has its own diesel fuel tanks, on-board control systems, batteries, etc. The Mobile FRAC Pumper does require a mated truck tractor for transporting it between service locations.
The applicable classification subheading for the Mobile FRAC Pumper will be 8705.90.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Special purpose motor vehicles, other than those principally designed for the transport of person or goods...:Other.”
NY N049598 continued to address whether the goods described qualify for NAFTA preferential treatment. That portion of the ruling remains intact and is not affected by this modification.
ISSUE:
Whether the subject Mobile FRAC Pumper is a pump for liquids of heading 8413, HTSUS, or whether it is a special purpose motor vehicle of heading 8705, HTSUS.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration in this case are as follows:
8413 Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; parts thereof:
8413.50.00 Other reciprocating positive displacement pumps
***
8705 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, wreckers, mobile cranes, fire fighting vehicles, concrete mixers, road sweepers, spraying vehicles, mobile workshops, mobile radiological units):
8705.90 Other
Note 1(l) to Section XVI, which covers Chapter 84, states that Articles of Section XVII, which covers Chapter 87, are not classified therein. Therefore, if the subject merchandise is classified in heading 8705, HTSUS, then it is precluded from classification in heading 8413, HTSUS.
Note 3 to Section XVI, HTSUS, provides, in pertinent part, the following:
Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the HTSUS at the international level, may be utilized. The ENs, although not dispositive or legally binding, provides a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg 35127 (August 23, 1989).
The EN 84(B) General Arrangement of the Chapter provides, in relevant part:
(2) Headings 84.02 to 84.24 cover the other machines and apparatus which are classified mainly by reference to their function, and regardless of the field of industry in which they are used.
The EN 84.13 provides, in relevant part:
This heading covers most machines and appliances for raising or otherwise continuously displacing volumes of liquids (including molten metal and wet concrete), whether they are operated by hand or by any kind of power unit, integral or otherwise.
It continues:
The machines of this heading can be subdivided, according to their system of operation, into the following five categories:
Reciprocating Positive Displacement Pumps
These use the linear suction or forcing action of a piston or plunger driven within a cylinder, the inlet and outlet being regulated by valves. “Single-acting” pumps utilize the thrust or suction of one end of the piston only; “double-acting” types pump at both ends of the piston thus using both the forward and reverse strokes. In simple “lift” pumps, the liquid is merely raised by suction and discharged against atmospheric pressure. In “force” pumps, the compression stroke is used, in addition to the suction stroke, to force the liquid to heights or against pressure. Multi-cylinder pumps are used for increased output. The cylinders may be either in line or in a star shape.
The EN 87.05, HTSUS, states, in subsection Motor Vehicle Chassis or Lorries (Trucks) Combined With Working Machines, the following, in relevant part:
It should be noted that to be classified in this heading, a vehicle comprising lifting or handling machinery, earth levelling, excavating or boring machinery, etc., must form what is in fact an essentially complete motor vehicle chassis or lorry (truck) in that it comprises at least the following mechanical features: propelling engine, gear box and controls for gear changing, and steering and braking facilities.
In HQ H243822, dated July 30, 2014, this office classified a single unit consisting of multiple rotary positive displacement pumps, and a mixing and stirring device, used to keep chemicals from settling and becoming unusable during transport and storage. There, CBP noted that the items of heading 8413, HTSUS, are machines and appliances for raising or otherwise continuously displacing volumes of liquids, including molten metal and wet concrete. See H243822, citing EN 84.13. The heading includes reciprocating positive displacement pumps which move fluid using one or more oscillating pistons, plungers, or membranes, while valves restrict fluid motion to the desired direction.
The main components of the subject merchandise are either one or two radiators, an engine, a torque converter, a transmission, diesel fuel tanks, on-board control systems, batteries and a pump. The pumper is permanently bolted or affixed to a chassis trailer. The trailer itself, is not self-propelled, rather it must be hitched to a truck tractor for travel to the site. The pumper does not have any of the following features: a propelling engine, gear box and controls for gear-changing, and steering and braking facilities. See EN 87.05, HTSUS, which states that goods classified therein have those features. Hence, the merchandise is not described by heading 8705, HTSUS, and Note 1(I) does not exclude it from classification in Chapter 84.
The Mobile FRAC Pumper is used to pump chemical mixtures into an oil or gas well, which is mounted onto its prime mover, i.e. a diesel engine on a non-driven trailer chassis. Once the pumper is transported to a fracking site, it pumps chemical mixtures into the well. It relies on a reciprocating plunger to displace the liquid which is being pumped into the wells. This is a description of a positive displacement liquid pump. Under Note 3 to Section XVI, HTSUS, the merchandise is classified according to its principal function. Thus, the principal function of the subject merchandise is as a pump. It is described by the terms of heading 8413, HTSUS, as a pump for liquids. This is consistent with prior CBP rulings of similar goods. See NY N239029, dated March 26, 2013 (classifying a trailer mounted unit which pumps chemicals into the well service as a rotary positive displacement pump of heading 8413, HTSUS); NY E85413, dated August 17, 1999 (classifying axial piston pumps in heading 8413, HTSUS); and see NY 850742, dated April 26, 1990 (classifying a chassis mounted concrete pump in heading 8413, HTSUS).
HOLDING:
By application of GRI 1, the subject Mobile FRAC Pumper is classified in heading 8413, HTSUS, specifically subheading 8413.50.0090, HTSUS A (Annotated), which provides for: “Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof: Other reciprocating positive displacement pumps: Other.” The general column one rate of duty is free.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at www.usitc.gov .
EFFECT ON OTHER RULINGS:
NY N049598, dated February 3, 2009, is hereby MODIFIED, as regards the tariff classification of the subject mobile pumper from Canada. In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division