CLA-2-84:OT:RR:NC:N1:405
Nichol Bradley
Fluor Corporation
6700 Las Colinas Boulevard
Irving, TX 75039
RE: The tariff classification of pipe rack modules from the Philippines
Dear Ms. Bradley:
In your letter dated April 10, 2017, you requested a tariff classification ruling.
The products at issue in your submission are described as two types of pipe rack modules. The modules in question are referred to as the Stairway/Structural module and the Pipe Rack Module with Heat Exchangers. You indicate that the modules are intended for the Tesoro Clean Upgrades Project in Anacortes, Washington, and that the modules will be assembled in the Philippines prior to being transported to the United States.
The ISOM-ST-08 Stairway/Structural module contains the steel staircase that connects to decks at various levels and elevations in order to access the pipeway and equipment. The total reported weight of the module is said to be 26 tons.
The Pipe Rack Module with Heat Exchangers, further identified as the NHT-EQ-01 Hot Separator Module, is said to consist of one hot separator, two heat exchangers, pipe, valves, conduit, cables, transmitters, thermowells, and thermocouples. The total reported weight of the module, when assembled, is 108 tons. You indicate that, within the module, partially cooled NHT reactor effluent (NHT presumably standing for naphtha hydrotreatment unit) passes through the hot separator unit wherein the vapor and liquid are separated. The liquid from the hot separator is subsequently directed to the heat exchangers by means of the inbuilt pipes and valves, and is ultimately routed to another apparatus (a stabilizer) not included with this module.
You suggest classification of the NHT-EQ-01 in subheading 8419.50, Harmonized Tariff Schedule of the United States (HTSUS), which provides for heat exchange units. You state that the module’s heat exchangers perform the unit’s main function, and thus should be considered to impart the essential character to the module. Based on the information provided, it is not clear that the heat exchangers perform the main function of the module. The NHT process is intended to remove contaminants from the naphtha stream, and the hot separator appears to contribute to this process by further separating the hydrocarbon liquid from any gas and water in the stream (the hydrocarbon liquid will presumably undergo additional processing to become a refined petroleum product elsewhere in the facility). Consequently, it would seem that the hot separator plays a more significant role in the operation of the module than do the heat exchangers. Additionally, the separator, at a minimum, is covered by the heading that appears last among those that equally merit consideration in providing the module’s essential character.
The applicable subheading for the ISOM-ST-08 Stairway/Structural module will be 7308.90.9590, HTSUS, which provides for Structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge sections, lock gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns) of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures of iron or steel: Other: Other: Other: Other: Other. The rate of duty will be free.
The applicable subheading for the NHT-EQ-01 Hot Separator Module will be 8421.29.0065, HTSUS, which provides for Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for liquids: Other: Other: Other: Other. The rate of duty will be free.
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 https://hts.usitc.gov/current.
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 Evan Conceicao at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division