CLA-2-73:OT:RR:NC:N1:113
Mr. Waquar U. Khan
Oceaneering International Services Inc.
Tower-e, DLF Technology Park, Chandigarh
Chandigarh, India 16010
RE: The tariff classification of a hot stab body from an unspecified country
Dear Mr. Khan:
In your letter dated February 12, 2018, you requested a tariff classification ruling. Pictures were submitted along with your ruling request.
The item under consideration is identified as a Hot Stab Body – 2 inch high flow CW flange, part number 980154643. The hot stab body is a male component of a hot stab and is composed of stainless steel. You stated that the hot stab is a remotely operated “high flow hydraulic connecting system that consists of a female (manifold) and a male (hot stab)…The male component is fitted to a hose supplying high flow. This may be from a Remotely Operated Vehicle (ROV) pumping skid or an overboard hose.” The hot stab is a conduit used to transfer the hydraulic fluid or gas between the fluid or gas source and the remote piece of subsea equipment.
You indicated in your letter that “The hot stab body is a means of making a temporary hydraulic or gas connection to a remote piece of subsea equipment using the ROV as the means of delivery and possibly supply of the fluid. Common uses: power hydraulic tools, transfer fluid, perform chemical injections and to monitor pressure.” Hot stabs are normally used to override existing systems, complement systems such as lower riser packages with locking and unlocking functions, hydraulically activate valves and tools, hydro testing and pigging, test seals and connections. The basic function of the hot stab body is to regulate the flow of fluids. The hot stab can be interchangeably used with any machine or apparatus. ROV is used for making connection only, if using hot stabs in subsea. The male hot stab body and female manifold when joined to each other create a pathway for fluid.
You suggested that the hot stab body under consideration be classified in heading 8412, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other engines and motors and parts thereof. You stated that it is similar in name and function to the hot stabs in Headquarters (HQ) Ruling H078778, which were classified in subheading 8412.90, as parts of hydraulic motors.
Classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRIs) taken in order. GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes.
It is a long-standing CBP practice to define “parts” within the meaning of the HTSUS using the following two tests:
It must be an “integral, constituent, or component, without which the article to which it is to be joined could not function as such article” to be a part of an article. United States v. Willoughby Camera Stores, Inc.
An “imported item dedicated solely for use with another article is a ‘part’ of that article within the meaning of the HTSUS.” United States v. Pompeo.
You stated in your request, that the hot stab is a conduit for transferring liquids and gases in a variety of applications which include, but are not limited to power hydraulic tools, transferring fluids, performing chemical injections and monitoring pressure. The hot stab is used interchangeably with any machine or apparatus. In HQ H078778, the hot stabs at issue were dedicated solely for use in a Hydraulic Power Unit (HPU). You stated that the subject hot stab is not used with a HPU, but rather a pumping skid, or an overboard hose. As a result, the hot stab under review does not have the same function as the hot stabs of HQ H078778, and is not a part of hydraulic motors of heading 8412, HTSUS, within the CBP definition of a “part”. Consequently, classification of the hot stab in heading 8412 is precluded.
The applicable subheading for the Hot Stab Body – 2 inch high flow CW flange, part number 980154643 will be 7326.90.8688, HTSUS, which provides for other articles of iron or steel, other…other. The rate of duty will be 2.9 percent ad valorem.
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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division