CLA-2-84:OT:RR:NC:N1:104
Mr. Luis Arandia
Givens & Johnston, PLLC
950 Echo Lane Suite 360
Houston, TX 77024
RE: The tariff classification of an agitator from an unspecified country
Dear Mr.Arandia:
In your letter dated September 17, 2018 on behalf of Andergauge USA, Inc., you requested a tariff classification ruling.
The subject agitator is said to be used solely in drilling operations. The steel alloy downhole tool is designed to reduce any friction caused by the drill pipe making contact with the sides of the borehole wall. It is said to be “generally located above the bottom hole assembly (BHA) 1 (i.e., above the drill bit, but below the first piece of drill pipe)” on the drill string. Utilizing axial vibrations, the agitator reduces the amount of friction. The agitator is not used in well completion or well remediation operations. Upon completion of the drilling, the drill string with the agitator is removed from the borehole wall.
The applicable subheading for the above described agitator will be 8431.43.8060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8426, 8429 or 8430: Parts for boring or sinking machinery of subheading 8430.41 or 8430.49: Other …Of oil and gas field machinery: Other”. The general rate of duty will be free.
Your letter does not indicate the agitator’s country of origin. In the event China is determined to be the country of origin, please be advised of the following:
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8431.43.8060, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8431.43.8060, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 the 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 Patricia O’Donnell at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division