CLA-2-84:OT:RR:NC:N1:104
Eric Santos
Enerteq Solutions, Inc
4800 W. 34th St, Ste C14
Houston, TX 77092
RE: The tariff classification of hot tap and line stop equipment from Spain
Dear Mr. Santos:
In your letter dated July 31, 2025, you requested a tariff classification ruling on hot tap machines and line
stop/completion machines and associated equipment.
The imported mechanical equipment is used to perform hot taps and line stops in “live” (pressurized) oil and
gas pipelines without service interruption. Hot taps involve drilling or cutting a hole in an existing pipeline
using a hot tap drilling machine to add new connections and branches to the pipeline without shutting down
the system or interrupting the flow of the product. Line stops and completion operations, performed by line
stop and completion machines, are used when it is necessary to isolate a section of the pipeline by
temporarily blocking the flow, typically for pipeline repairs, replacements or modifications. The imported
equipment will include two groups of mechanical apparatus: hot tap equipment and line stop/completion
equipment.
The hot tap equipment features a tubular hot tap machine (drilling machine) with an integrated boring bar and
protective housing. The drilling machine will be imported with: (1) a pneumatic motor for powering the drill;
(2) threaded and flange tapping adaptors; (3) a slim (aka sandwich) valve for temporary gas or fluid flow
isolation; and (4) hole saw cutters and pilot drill bits. In operation, a fitting with a flanged outlet (not
imported here) is attached to the existing pipe. The valve is attached to the fitting, and the drilling machine is
inserted into the valve. The tapping adaptor is bolted to the valve and connects the drilling machine to the
valve, acting as pressure-tight housing for the hole saw. The hole saw cuts out the “coupon” or curved section
of pipeline wall. After the cutter has cut through the pipe, it is retracted into the adapter (along with the
coupon), and the valve is closed, and the drilling machine is removed from the line.
The line stop equipment includes: (1) a line stop actuator; (2) an adaptor, (3) plug holders; (4) a pivoting line
stop head or plugging head with a sealing element; (5) a slim valve; and (6) a completion machine. The
actuator is a mechanical sealing unit, containing a control bar with the pivoting head attached. The actuator is
fixed to a housing, which in turn is fixed to the slim valve that opens to permit the pivoting head to be
inserted into the pipe. Hydraulic pressure supplied to the actuator causes the control bar to advance the
pivoting head to the bottom wall of the pipe. A completion machine is used after the line stop intervention is
complete to finalize a line stop repair by inserting a permanent sealing component referred to as a completion
plug. The completion plug itself is not included in the importation.
You suggest that the two groups of imported equipment, i.e., the hot tap equipment and the line
stop/completion equipment, together qualify as a single functional unit within the meaning of Section XVI,
Note 4, Harmonized Tariff Schedule of the United States (HTSUS) and therefore are classifiable together
under single tariff heading. We disagree, as the function of these two groups of equipment are not the same.
The function of a hot tap machine is to make connections to existing pipelines while under pressure (pressure
tapping). On the other hand, the function of a line stop/completion machine is to temporarily stop the flow to
allow for maintenance or repair of a section of pipeline and plug it upon completion. While the hot tap and
line stop/completion machines are often used together, hot taps can be and are performed without line stops.
As each constitutes a machine with individual functions, and neither are classified elsewhere in the tariff,
they will each be classified separately within heading 8479.
In your submission, you claim the products should be classified in subheading 8479.10.0080, HTSUS, which
provides for “Machinery for public works, building or the like; Other.” We disagree. CBP applies three
criteria for determining what constitutes “public works.” Public works consist of: (1) projects, such as
highways, dams, and bridges, which are (2) financed by public funds; and (3) are for use by the general
public. All three criteria must be met. While municipalities fund pipeline interventions and repairs, hot taps
and line stops are also widely performed in private industries such energy plants, chemical plants and
refineries, and in manufacturing plants. No evidence was presented that hot taps or line stops are principally
financed by public funds or principally for use by the general public. Therefore, hot taps and line stops are
not public works.
The applicable subheading for the hot tap machine and its associated equipment, i.e., pneumatic motor,
tapping adaptors, slim valve, and hole saw cutters and pilot drill bits, when imported together, 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 will be 2.5 percent ad valorem.
The applicable subheading for the line stop/completion machines and their associated equipment, i.e.,
actuator, adaptor, plug holders, pivoting line stop head or plugging head, slim valve, and completion
machine, when imported together, will be 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 of the European
Union with an ad valorem (or ad valorem equivalent) rate of duty under column 1-General less than 15
percent will be subject to an additional ad valorem rate of duty of 15 percent minus the column 1-General
duty rate. At the time of entry, you must report the Chapter 99 heading applicable to your product
classification, i.e. 9903.02.20, 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 the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. If 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)
James Forkan
Acting Director
National Commodity Specialist Division