CLA-2-84:OT:RR:NC:N1:102
Mr. Robert D. Stang
Partner
Husch Blackwell LLP
750 17th St. N.W., Suite 900
Washington, D.C. 20006-4675
RE: The tariff classification of an incomplete oil well pumping unit
Dear Mr. Stang:
In your letter dated July 31, 2018, on behalf of Liberty Lift Solutions of Midland, Texas, you requested a tariff classification ruling. Technical literature was provided.
The merchandise at issue is an oil well beam pumping unit. The pumping unit’s function is to displace oil from the bottom of an oil well to the surface. The primary components of the unit are a walking beam, the horsehead, the counterweight, the gear reducer and the prime mover. The incomplete unit is placed above ground and once connected with various rods and other connections, the unit moves downward and upward through the underground tubing to extract oil.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI's) 1through 6. The systematic detail of the HTSUS is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relevant section or chapter notes.
In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI's may be applied, taken in order.
GRI 2(a), HTSUS states, “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled”.
In your letter, you suggested classification of the incomplete oil well beam pumping unit in heading 8413, pursuant to GRI 2(a). This office agrees as the pump unit has the essential character of the completed unit at importation.
As such, the applicable subheading for the oil well beam pumping unit will be 8413.50.0010, HTSUS, which provides for Pumps for liquids,whether or not fitted with a measuring device; liquid elevators; Other reciprocating positive displacement pumps; Oil well and oil field pumps. The rate of duty will be Free.
The country of origin for the oil well pumping unit is not stated in your letter. However, it should be noted that effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. Subsequently, USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710) and August 16, 2018 (83 F.R. 40823). Products of China that are provided for in subheading 9903.88.01 or 9903.88.02 and classified in one of the subheadings enumerated in U.S. note 20(b) or U.S. note 20(d) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8413.50.0010, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. If the oil well pumping unit is a product of China, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8413.50.0010, HTSUS, listed above at the time of importation.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 the 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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division