CLA-2-84:OT:RR:NC:N1:104
Sam Aspinall
Global Trade Consulting Pty Ltd
81-83 Campbell Street, Surrey Hills, New South Wales
Sydney 2010
Australia
RE: The tariff classification of desand tank module from Canada
Dear Mr. Aspinall:
In your letter dated May 7, 2025, you requested a classification ruling on behalf of your client, Santos
Limited – Oil Search (Alaska).
The 341 Desand Tank Module (341 Module) is a processing unit that will be installed into the Nanushuk
Processing Facility (NPF) in Alaska. The NPF will process oil deposits from the Nanushuk reservoir into
sales quality oil. The 341 Module will be installed downstream from the Seawater Treatment Plant which
provides seawater injection to subsurface reservoirs in the NPF.
The 341 Module employs a gravitational separation process to separate solids and sediments from four
upstream input flows. Desand slurry flowing into the 341 Module is a mixture of water and sand, and small
amounts of entrained oil. The first stage of the processing in the 341 Module removes water and oil from the
sand. Gravitational separation means that denser sediments from the input slurry will settle in the desand
tank, allowing the recovered (supernatant) water to be pumped from the module. The slurry exiting the
bottom of the 341 Module’s tank is of the same composition (water, sand, and oil), but is a more sand heavy
mix as bulk water has been removed. These bottom solids are sent (pumped) to a “342 centrifugal feed tank
module,” which functions in the same way as the 341 Module, further reducing the water content from the
slurry. The classification of the 342 centrifugal tank module will be addressed in a separate ruling, i.e.,
N348700.
The main components of 341 Module consist of a desand tank, desand tank supernatant pump, and two
sludge transfer pumps. The desand tank has a coned bottom that allows solids to sink to the bottom. The 341
Module also includes piping, valves, instrumentation, and all inlets and outlets to-and-from the facility pipe
rack. Other components include the desand building, desand tank sample return pump, pump motors, exhaust
fan and fan motors, building heaters and heater motors, and an electrical system. As the NPF is in Alaska, the
building heaters and exhaust fans are included to heat the module building and provide air circulation. These
do not have an impact on fluid processing.
The sludge transfer pumps maintain constant circulation of the slurry, allowing a consistent stream of slurry
from the desand tank into the centrifuge feed tank. As heavier particles of the slurry fall to the tank’s bottom,
they are pumped out to prevent deposits or blockages from forming. The desand tank supernatant pump is
used to pump the produced water from the tank after the particulates from the slurry are gravitationally
separated from the liquid and settled at the tank’s bottom. The supernatant pump is a centrifugal pump. The
pumps maintain constant circulation into the desand tank.
In your submission, you suggest the 341 Module should be classified in subheading 8421.21.0000,
Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Centrifuges, including
centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering
or purifying machinery and apparatus for liquids: For filtering or purifying water.” We disagree. The 341
Module contains an empty tank with no baffles, filtration media, membranes or any other forms of filtering.
Instead, the tank has a coned shaped bottom, and slurry is pumped into the top of the tank. Through gravity,
not filtration media, the heavier sand and contaminants fall to the bottom and are pumped out. Since there are
no filtering components associated with the module heading 8421, HTSUS, is excluded from consideration.
By operation of Note 4 to Section XVI, HTSUS, the 341 Module, imported in one shipment with all its
interconnected components, constitutes a functional unit in that its various components contribute together to
a clearly defined function, which is gravitational separation of solids and sediments from process fluids.
Heading 8479, HTSUS, and Explanatory Note 84.79 provide for machines and mechanical appliances having
individual functions, not specified, or included elsewhere in Chapter 84, HTSUS. The 341 Module is not
described by any other heading in Chapter 84, HTSUS. Accordingly, classification in heading 8479 is
appropriate.
Pursuant to GRI 1 (Section XVI Note 4) and GRI 6, the applicable subheading for the 341 Module will be
8479.89.9599, HTSUS, which provides for “Machines and mechanical appliances having individual
functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical
appliances: Other: Other: Other.” The general rate of duty is 2.5 percent ad valorem.
Products of Canada as provided by heading 9903.01.10 in Section XXII, Chapter 99, Subchapter III, U.S.
Note 2(j), HTSUS, other than products classifiable under headings 9903.01.11, 9903.01.12, 9903.01.13,
9903.01.14, and 9903.01.15, HTSUS, will be subject to an additional 25 percent ad valorem rate of duty. At
the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.10, in addition to
subheading 8479.89.9599, HTSUS, listed above. Articles that are entered free of duty under the terms of
general note 11 to the HTSUS (U.S.-Mexico-Canada Agreement (USMCA)), including any treatment set
forth in subchapter XXIII of Chapter 98 and subchapter XXII of chapter 99 of the HTSUS, will not be
subject to the additional ad valorem duties provided for in heading 9903.01.10. If your product is entered
duty free as originating under the USMCA, you must report heading 9903.01.14, HTSUS, in addition to
subheading 8479.89.9599.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. Your product falls within an excepted
subheading. At the time of entry, you must report the Chapter 99 heading applicable to your product
classification, i.e. 9903.01.26, in addition to subheading 8479.89.9599, HTSUS, listed above.
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 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 Arthur Purcell at [email protected].
Sincerely,
(for)
Steven A. Mack
Director
National Commodity Specialist Division