CLA-2-84:OT:RR:NC:N1:103
Natasha Salter
Global Trade Consulting
L1/35 Ventnor Ave.
West Perth 6005
Australia
RE: The tariff classification of cooling modules from Canada
Dear Ms. Salter:
In your letter dated May 28, 2025, you requested a tariff classification ruling on behalf of your client, Santos
Limited – Oil Search (Alaska).
The merchandise under consideration is referred to as the 431, 433, and 435 Lift Injection Gas ESD Modules
that are incorporated into the Nanushuk Processing Facility, a modular plant currently under construction in
Alaska. When construction is complete, this facility will process oil deposits from the Nanushuk reservoir
into sales quality oil.
All three modules are identical in configuration and installed with sequential compressor modules (i.e.,
module numbers 432, 434, and 436) in the plant. The function of the lift injection gas modules is to cool
compressed gas within two gas intercoolers in each module. The intercoolers are configured as stainless-steel
plate and shell heat exchangers, where compressed gas flows into the shell side of the unit while a cooling
medium flows through the plate side of the heat exchanger. The two fluids do not mix as they move through
the intercooler and the compressed gas exits the module with a lower temperature.
At the time of importation, the module will contain piping leading to each intercooler and the controls,
instrumentation, and valves for directing the flow of gas. Also included are exhaust fans, fan motors, building
heaters, and heater motors. As the Nanushuk Processing Facility is in Alaska, the building heaters and
exhaust fans are included to heat the module building and provide air circulation. They do not have an impact
on fluid processing.
In your request, you suggest that the 431, 433, and 435 Lift Injection Gas ESD Modules are classifiable
under subheading 8419.50.5000, Harmonized Tariff Schedule of the United States (HTSUS). We agree. Each
module is imported in a separate shipment with interconnected components and is classified pursuant to Note
4 to Section XVI. Note 4 covers machines consisting of separate components that are intended to contribute
together to a clearly defined function. Here, the components contribute together to perform a function
covered by heading 8419, i.e., the treatment of materials by a process involving a change of temperature.
Regarding the subheading, General Rule of Interpretation (GRI) 6 requires that the classification of goods in
the subheadings of headings shall be determined according to the terms of those subheadings, any related
subheading notes, and to the GRIs. We note that the compressed gas is only treated within the plate and shell
heat exchangers and exits the module without any other processing.
The applicable subheading for the 431, 433, and 435 Lift Injection Gas ESD Modules will be 8419.50.5000,
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 general rate of duty will be free.
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 8419.50.5000, 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 8419.50.5000, HTSUS.
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 8419.50.5000, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 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,
(for)
Steven A. Mack
Director
National Commodity Specialist Division