CLA-2-84:OT:RR:E:NC:1:104
Mr. Jose R. Hernandez
Sr. Import Compliance Adm.
Halliburton Energy Services, Inc.
2601 E. Beltline Road
Carrollton, TX 75159
RE: The tariff classification of a Swellpacker Isolation System (Swellpacker) from Norway
Dear Mr. Hernandez:
In your letter dated July 14, 2008 you requested a tariff classification ruling.
The Swellpacker consists of various lengths of standard oilfield tubular with rubber elements bonded along the outer length of the tube. The Swellpacker enters down into the wellbore, and the hydrocarbon molecules present in the well diffuse into the cross-linked rubber polymer (packer element) and allow the rubber element to swell and seal inside against open hole or cased hole. The Swellpacker isolation system is based on the swelling properties of rubber in hydrocarbons. It can swell up to 200%, sealing the annulus around the pipe to isolate producing zones. The rubber retains its flexibility, allowing the Swellpacker system to adapt to shifts in the formation over time, retaining the integrity of the seal. The conditions of the wellbore such as temperature and the fluid properties are key variables to determine the rate of absorption and the time required to swell and set the packer.
In your letter you had proposed the classification of subheading 7304.29.10, Harmonized Tariff Schedule of the United States (HTSUS). However, heading 7304, HTSUS, would not be applicable as it excludes tubes, pipes and hollow profiles made up into specific identifiable articles.
The applicable subheading for the Swellpacker Isolation System will be 8479.89.9850, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; and parts thereof: Other machines and mechanical appliances: Other…Other…Oil and gas field wireline and downhole equipment. The rate of duty will be 2.5% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Patricia O’Donnell at 646-733-3011.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division