CLA-2-39:OT:RR:NC:SP:237
Mr. James Philip Jagger
ACTS
391 Attwell Drive
Etobicoke, Ontario
Canada M9W 5C4
RE: Tariff classification of phenolic resin coated sand proppant from Canada.
Dear Mr. Jagger:
In your letter dated May 26, 2008, on behalf of Hexion Specialty Chemicals, you requested a tariff classification ruling.
Prime Plus 40/70 is described as phenolic resin coated sand proppant. Proppants are injected deep into the hydraulically created fractures of low permeability oil reservoirs to keep the fractures open and maintain oil flow. The proppant resin is fully cured in situ. Because the resin is thermosetting, the cured proppant particles retain their pre-cured spherical shapes forming a filter large enough to permit oil flow out of the well bore.
In your letter you proposed classification under subheading 3824.90.9290, HTSUS, which provides for chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included. However, phenolic resins in primary forms are specified by name in heading 3909, HTSUS, which provides for phenolic resins. Explanatory Note (EN) 3909 (2) (b) provides for thermosetting phenolic resins. Primary forms may incorporate fillers (e.g., mineral substances like sand).
The applicable subheading for Prime Plus 40/70 phenolic resin coated sand proppant will be 3909.40.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for phenolic resins, in primary forms. The rate of duty will be 6.5% 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 http://www.usitc.gov/tata/hts/.
This merchandise may be subject to the requirements of the Toxic Substances Control Act administered by the U.S. Environmental Protection Agency (EPA). You may contact the EPA at 402 M Street S.W., Washington, D.C. 20460, telephone number 202-554-1404.
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 control number shown 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 Frank Cantone at 646-733-3038.
Sincerely,
Robert Swierupski
Director,
National Commodity
Specialist Division