CLA-2-38:OT:RR:NC:N3: 139

Michael Dahm
Cole International
1775 Baseline Rd Grand Island, NY 14072

RE: The tariff classification of Enerzan L from Canada.

Dear Mr. Dahm:

In your letter dated May 3, 2023, on behalf of your client Canadian Energy Services, you requested a tariff classification ruling.

The merchandize in question is “Enerzan L” claimed to be a mix of predominantly premium mineral oil and xanthan gum, a viscosifier in downhole activity for water based drilling fluids.  You indicate that the components used to produce “Enerzan L” are from the United States, India, and China.

In your request, you suggest classification of Enerzan L in subheading 3913.90 or 3824.99, Harmonized Tariff Schedule of the United States (HTSUS).  We disagree with subheading 3913.90, Harmonized Tariff Schedule of the United States (HTSUS). Heading 3913 provides for natural polymers and modified natural polymers, not elsewhere specified or included, in primary forms. Enerzan L is an intentional mixture of xanthan gum with mineral oil, surfactant and clay that will be used to improve downhole activities. Therefore, classification in Heading 3913 is precluded.

The applicable subheading for “Enerzan L” will be 3824.99.4900, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included:  Other:  Other:  Other:  Other:  Mixtures that are in whole or in part of hydrocarbons derived in whole or in part from petroleum, shale oil or natural gas.  The rate of duty will be free.

The merchandise in question may be subject to antidumping duties and countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP).  You can contact them at https://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the Department of Commerce ITA website at https://www.trade.gov/data-visualization/adcvd-proceedings, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb/.

This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U.S. Environmental Protection Agency (EPA).  Information on the TSCA can be obtained by contacting the EPA at Document Control Office (7407M), Office of Pollution Prevention and Toxics (OPPT), Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W., Washington, D.C., 20460, by calling the Toxic Substances Control Act Hotline at 800-471-7127, by e-mailing to [email protected], or by visiting their website at www.epa.gov.

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 at https://hts.usitc.gov/current

This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist John Bobel at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division