CLA-2-84:S:N:N1:102 876827
Ms. Linda Campanian
Milne & Craighead Customs Brokers
200 International Boulevard
P.O. Box 2
Sweetgrass, MT 59484
RE: The tariff classification of a downhole mud motor from
Canada
Dear Ms. Campanian:
In your letter dated July 24, 1992, on behalf of your
client, Drilmaster, you requested a tariff classification ruling.
The item involved in this ruling request is a directionally
controllable downhole mud motor for use in such fields as oil
exploration. The entire motor consists of several sections: a
submotor section; a dump valve section; a power section; a
connecting rod assembly; and a bearing assembly. The
specifically designed motor in the Drilmaster mud motor is a
multi-stage device which makes up approximately half the length
of the tool. It consists of only two parts, a rotor and a
stator, both of which you state are products of the United
States.
The stator tube forms the outer body of the motor assembly.
This tube is lined with a rubber-like compound (buna N) that
resists abrasion and damage from hydrocarbons. The cavity of the
stator is spiral shaped in length and can have any one of several
shapes in cross section. Fluid (mud) is pumped down the length
of the string where it eventually enters the rotor/stator section
under pressure. This pressurized mud causes the rotor to turn,
thereby powering the drill bit.
The applicable subheading for the downhole mud motor will be
8412.29.8060, Harmonized Tariff Schedule of the United States
(HTS), which provides for other hydraulic power engines and
motors; unlimited rotary acting. The duty rate will be 3.4
percent ad valorem.
Goods classifiable under subheading 8412.29.8060, HTS, which
have originated in the territory of Canada, will be entitled to a
free rate of duty under the United States-Canada Free Trade
Agreement (FTA) upon compliance with all applicable regulations.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport