CLA-2-84:OT:RR:NC:N1:103
Natasha Albertini
Deloitte Tax Services Pty Ltd
Brookfield Place, Tower 2, 123 St Georges Terrace Perth WA 6000 Australia
RE: The tariff classification of a crude heater from Canada
Dear Ms. Albertini:
In your letter dated October 17, 2023, you requested a tariff classification ruling on behalf of your client, Santos Limited.
The item under consideration is referred to as a Crude Heater Exchanger Module, which is described as a heat exchanger used in an oil refinery to heat crude oil. It is configured as a carbon steel shell-and-tube heat exchanger where two fluids, of different starting temperatures, flow through the unit. The fluids, namely oil and glycol, will enter through different inlets, remain separated by a barrier, and flow in opposite directions. Before the glycol enters the module, it is heated by a separate system in the facility using recycled waste heat produced from turbine exhaust. As the two fluids pass each other, the heat from the glycol is transferred to the oil. Your request concerns two modules, identified as 223-001 and 223-002, which will be identical in construction and operate in parallel as part of a greater Crude Heater Module.
The applicable subheading for the Crude Heater Exchanger Module, modules 223-001 and 223-002, will be 8419.50.5000, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof: Heat exchange units: Other.” The rate of duty will be free.
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/current.
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 Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division