CLA-2-90:OT:RR:NC:N1:105
Glenn Carberry
Praxair, Inc.
175 East Park Drive
Tonawanda, NY 14150
RE: The tariff classification of a gas flow metering system from China
Dear Mr. Carberry:
In your letter dated December 18, 2017, you requested a tariff classification ruling.
Your submission concerns the importation of a gas flow metering system that will be installed in a hydrogen and carbon monoxide production facility in the United States. The complete gas flow metering system will be disassembled into four interconnected modules, identified as Modules 101, 102, 103, and 104, prior to importation into the United States. You indicate that the four modules that comprise the complete system will be shipped to the United States together under the same bill of lading. The primary purpose of the complete gas flow metering system is to provide measurements of the volumetric flow rate of the gases that pass through the facility’s production and distribution network.
Module 101 is described as a fully modularized oxygen metering station and contains flow measuring devices, various valving, junction boxes and electrical conduits, with all of the requisite controls and instrumentation pre-wired. This module is designed to measure the flow rate of the high pressure and medium pressure gaseous oxygen supplied from an existing pipeline network for billing purposes. The module will be incorporated into the production facility’s oxygen feed/compression system and the product delivery lines to the customer.
Module 102 is described as a fully modularized hydrogen and nitrogen metering station that contains flow measuring devices, various valving, junction boxes and electrical conduits, with all of the requisite controls and instrumentation pre-wired. This module measures the flow rate of gaseous hydrogen and gaseous nitrogen products. Once installed, the module’s hydrogen metering elements will be incorporated into the facility’s hydrogen production network, while the nitrogen metering elements will be incorporated into the facility’s nitrogen feed system and customer delivery lines.
Modules 103 and 104 serve as interconnecting units, intended to facilitate the installation and connection of the metering stations (Modules 101 and 102) to the gas production facility and its associated distribution network. The modules contain the necessary lighting, valves, and in-line specialty items such as spectacle blinds and spacer rings to incorporate Modules 101 and 102 into the production facility’s existing infrastructure.
Based on the information provided, the principal function of the combined modules that comprise the gas metering system is the measurement of the volumetric flow rate of gases that pass through the system. Modules 101 and 102 incorporate multiple flow measuring devices that utilize orifice plates to measure the rate of flow of the streams of gas that pass through them. The data collected by the measuring devices are sent to a computer system that calculates the overall volumetric flow rates and can meter them for billing purposes. Modules 103 and 104 facilitate the installation and connection of the metering modules to the existing gas production facility.
While the modules in question do include components such as valves, electrical equipment, etc., these elements appear to play an ancillary role in the complete system’s operation. Furthermore, per the information provided, none of the valves incorporated into the system are directly attached to the flow measuring devices that perform the system’s principal function. Additionally, it should be noted that while the complete system does provide a metering function, it does so by measuring the rate of flow of gas, rather than merely indicate the total amount of gas delivered (a distinction described in Harmonized System Explanatory Note I to Heading 9026).
Taking the above into account, it is evident that Modules 101, 102, 103, and 104 comprise a complete system for which the principal function is to measure the rate of flow of gases. Consequently, the four modules, when imported together, will be classified as a gas flow measuring system of heading 9026, in accordance with General Rule of Interpretation 2(a), Note 4 to Section XVI, and Note 3 to Chapter 90.
The applicable subheading for the complete gas flow metering system will be 9026.80.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases (for example, flow meters, level gauges, manometers, heat meters)…; parts and accessories thereof: Other instruments and apparatus: Electrical. 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