CLA-2-89:OT:RR:NC:N2:206
Natasha Albertini
Global Trade Consulting
81-83 Campbell Street Surrey Hills NSW 2010 Australia
RE: The tariff classification of a seawater treatment barge from Indonesia
Dear Ms. Albertini:
In your letter dated January 8, 2025, you requested a tariff classification ruling on a seawater treatment barge, which you filed on behalf of Santos Limited - Oil Search (Alaska).
The article under consideration is the Seawater Treatment Plant Barge (STP Barge). The STP Barge is designed to support sustained oil production by treating seawater for injection into subsurface reservoirs. The purpose is to maintain the oil reservoir pressure, which naturally declines as oil is extracted, facilitating oil extraction by pushing the remaining oil out of the reservoir pores. The STP Barge is a combined asset consisting of a flat-bottomed, unpowered floating barge from South Korea, and a seawater treatment plant (STP) manufactured in Indonesia subsumed into its deck in Indonesia.
The barge houses and structurally supports the STP and measures 145 meters in length, 56.2 meters in width, and 8 meters in height. It has a draft of 1.89 meters, which is submerged when the barge is operational. Its light ship weight is 15,100 tons. The STP is comprised of 13 modules performing various functions including refining seawater through sediment filtration, deoxygenation, and sulphate removal. Other modules generate electrical power, and distribute and monitor electrical power across various plant systems to heat and pressurize seawater. Another provides for the storage of equipment, tools and materials that may be needed during operations or maintenance.
In your submission you suggested that the STP Barge could be classified in 8901.90, Harmonized Tariff Schedule of the United States (HTSUS). We disagree. You stated that the STP Barge is “not designed for self-transportation” and will be “ballasted and positioned on the seabed in shallow waters” to be used to “support sustained oil production.” Additionally, “[u]pon completion of the project, the barge can be floated once more for relocation and/or de-commissioning.” Since heading 8901.90, HTSUS, describes “Other vessels for the transport of goods and other vessels for the transport of both persons and goods,” and the STP Barge is not designed to move cargo or persons from one place to another, it is more appropriately classified elsewhere. You also suggested heading 8906, HTSUS, which provides for “Other vessels, including warships and lifeboats other than rowing boats.” However, heading 8905, HTSUS, is a more specific heading and more appropriate for classification.
The applicable subheading for the STP Barge will be 8905.20.0000, HTSUS, which provides for “Light- vessels, fire-floats, dredgers, floating cranes, and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms: Floating or submersible drilling or production platforms.” The rate of duty will be Free.
Generally, the coastwise laws prohibit the transportation of merchandise between points in the United States embraced within the coastwise laws in any vessel other than a vessel built in, documented under the laws of, and owned by citizens of the United States. Such a vessel, after it has obtained a certificate of documentation with a coastwise endorsement from the U.S. Coast Guard, is said to be “coastwise-qualified.”
The coastwise law applicable to the transportation of merchandise, often referred to as “the Jones Act,” is found at 46 U.S.C. § 55102. Inquiries regarding the applicability of the Jones Act to your case can be sent to the Commissioner of Customs and Border Protection, Attention: Regulations and Rulings, Office of International Trade, Washington, DC 20229, or by emailing [email protected] or [email protected]
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/.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division