CLA-2-84:OT:RR:NC:N1:102
Sam Aspinall
Global Trade Consulting Pty Ltd
L1/35 Ventnor Avenue
West Perth, WA 6005
Australia
RE: The tariff classification of a separator module from Canada
Dear Mr. Aspinall:
In your letter dated May 29, 2025, on behalf of Santos Limited – Oil Search (Alaska), you requested a tariff
classification ruling. Descriptive information was provided in your submission.
The 221 A/B Inlet Separator module is a module installed at the Nanushuk Processing Facility in Alaska. The
module is comprised of a steel separator vessel and a section that houses level gauges, a control panel, a
sample box, seventeen pneumatically actuated ball valves, eight pneumatically actuated plug valves, along
with building heaters and exhaust fans with motors. The heaters and fans maintain the temperature required
to meet the operational needs of the equipment. The vessel and the section containing machinery are
connected using pipes that feature manually actuated valves and instrumentation.
In operation, valves incorporated into the pipes control the flow of a mixture that consists of oil, gas, and
water. Once inside the separator vessel, the fluid dwells for a timeframe that allows water to gravitationally
settle at the bottom of the vessel, oil to spill over a weir and gas to be released. Once separated, valves release
the individual gas and fluids. Throughout the separation process, the ball and plug valves remove slurry and
water from the vessel.
In your letter you suggest the 221 A/B Inlet Separator Module is classified within subheading 8421.29.0015,
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: Other: Other: Oil-separation equipment. We disagree.
When a valve is opened on the 221 A/B Inlet Separator Module, it allows an oil and water mixture to enter
the container and then gravity allows for the separation. After 10 minutes the oil settles at the top of the
container while the water settles at the bottom. Additional valves are then opened to allow the liquid to exit
the container. Other than a simple weir that allows the oil to spill over, there are no devices in the container
that contribute to the filtration. Therefore, the module would not be considered oil-separation equipment of
Heading 8421, HTSUS.
You also suggest the module is classified within heading 8481, which provides for valves. We disagree.
While the module employs an assembly of valves to first introduce a mixture received from an external
connection into the vessel, and post-separation to control the flow of the different fluids and gas, the principal
purpose and function of the module is gravitational separation, not valve action. Accordingly, the module is
not an article of heading 8481.
Therefore, by operation of General Rule of Interpretation 1 and Note 4 to Section XVI, the applicable
subheading for the 221 A/B Inlet Separator 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, 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 8479.89.9599, 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 Arthur Purcell at [email protected].
Sincerely,
(for)
Steven A. Mack
Director
National Commodity Specialist Division