CLA-2-90:OT:RR:NC:4:405
Michael E. Murphy
Baker & McKenzie LLP
815 Connecticut Avenue, NW
Washington, DC 20006-4078
RE: The tariff classification of Machined Housings used in down well bore holes from China.
Dear Mr. Murphy:
In your letter dated May 22, 2012, on behalf of Halliburton Energy Services, you requested a tariff classification ruling. No samples were provided.
Each of the five items will provide a length of the piping that will go down the well bore hole and transmit the torque produced at the surface to the drill bit. Per the engineering drawings and information you have supplied, they are unlike the ordinary length of piping in that they are elaborately machined to close tolerances to also serve as a protective housing for specific apparatus that will also be within it down the borehole.
The Neutron Porosity Tool Housing will contain a Neutron Porosity Tool. From information via the internet, this is used in the measurement of the hydrogen index of the surrounding geology and is routinely “electrical” as defined by Chapter 90, HTSUS, Additional U.S. Note 2.
The Azimuthal Resistivity Tool Antenna Housing will contain an antenna needed by a transmitter and a receiver (each in a separate housing) which are not used to communicate information, but directly in the measurement of the electrical resistivity of the surrounding geology. From information via the internet, the full device routinely has a recording device.
The Pressure-While-Drilling Tool Housing has three openings to let in the well bore fluid which surrounds it and will contain an apparatus which will measure the pressure of that fluid. From information via the internet, this is routinely “electrical” as defined by Chapter 90, HTSUS, Additional U.S. Note 2.
The Gamma Ray Tool Housing will contain an apparatus to measure the level of gamma rays emitted by the surrounding geology.
The Positive Pulser Telemetry Assembly Housing is used in conjunction with an apparatus that will communicate primarily data measured down the well bore hole to the surface by affecting the mud, i.e., the cooling or other fluid returning to the surface.
We agree that the applicable subheading for the Neutron Porosity Tool Housing will be 9027.90.5495, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts and accessories, not printed circuit assemblies of electrical instruments and apparatus, of subheading 9027.80.25 or 9027.80.45. The rate of duty will be free.
We agree that the applicable subheading for the Azimuthal Resistivity Tool Antenna Housing will be 9030.90.8831, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "other" parts and accessories of instruments and apparatus for measuring or checking electrical quantities, of 9030.39. The rate of duty will be 1.7%.
We agree that the applicable subheading for the Pressure-While-Drilling Tool Housing will be 9026.90.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for, inter alia, parts and accessories of "electrical" apparatus for measuring or checking the pressure of liquids or gases. The rate of duty will be free.
We agree that the applicable subheading for the Gamma Ray Tool Housing will be 9030.90.4500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts and accessories, not printed circuit assemblies, of instruments and apparatus for measuring or detecting ionizing radiations of 9030.10. The rate of duty will be 1.6%
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.
Regarding the Positive Pulser Telemetry Assembly Housing, we are returning your request for a ruling and any related samples, exhibits, etc. We need additional information in order to issue a ruling. Please submit the information described below:
A. Generally relating to its physical characteristics:
1. Regarding Exhibit E.2 – What are the specific “Electrical and Mechanical Assemblies” noted on the drawing?
2. Regarding Exhibit E.5 - Blueprint of the assembled tool – Provide legible copy of Exhibit E.5 and identify all numbered items by name and function.
3. Footnote 11 on page 11 of your May 22, 2012 letter states that the “positive pulser contains a mechanism which, when actuated, generates a positive (an increase) pressure pulse …”. What is this “mechanism” and is it contained in the housing in question? How does it operate? How is it actuated? What supplies the power to cause the mechanism to be actuated? Is the pulse controlled by a series of transmitters and/or valves? Where are the transmitters and/or valves located – within the housing or on a separate drill collar outside of the housing?
4. Explain the step-by-step method of operation of the pulse telemetry system. Is the whole system enclosed in the M/LWD Positive Pulser Telemetry Assembly Housing (Part No. 99015)?
5. What is the material of composition for the M/LWD Positive Pulser Telemetry Assembly Housing?
6. Please clarify - Is the centralizer located inside the housing or around the tool string? Include labeled schematic showing the physical location of the centralizer in relation to the housing
B. Regarding the use of the Positive Pulser Telemetry Assembly Housing:
1. Would the data that it transmits to the surface routinely include the data measured by the 4 other devices in this request?
2. Provide evidence, if any, that the data transmitted would be principally the output of geophysical instruments classified in HTSUS 9015 as opposed to measuring instruments, whether or not used in a well bore hole, which are classified in other headings?
If you decide to resubmit your request, please include all of the material that we have returned to you and mail your request to U.S. Customs and Border Protection, Customs Information Exchange, 10th Floor, One Penn Plaza, New York, NY 10119, attn: Binding Rulings Section.
If you have any questions regarding specifically the questions in “A” above, contact National Import Specialist P. O’Donnell at (646) 733-3011. If you have any other questions regarding the above, contact National Import Specialist J. Sheridan at (646) 733-3012.
Sincerely,
Thomas Russo
Director
National Commodity Specialist Division