N337604

N337604 February 5, 2024 CLA-2-73:OT:RR:NC:N5:116 CATEGORY: Classification TARIFF NO.: 7304.19.1060 Ms. Natasha Albertini Global Trade Consulting 81-83 Campbell Street Surry Hills, Australia 2010 RE: The tariff classification of a pipe rack module from Canada Dear Ms. Albertini: In your letter dated January 17, 2023, you requested a tariff classification ruling on a pipe rack module from Canada, for your client, Santos Limited – Oil Search (Alaska). The product under consideration is described as Module 114C and is stated to be “an integral part of the overall interconnecting facility modularized pre-fabricated pipe rack system at Nanushuk Processing Facility (NPF).” It consists of a steel structure that supports the processing and utility piping that runs between various modules within the facility. This is a modularized unit for ease of site construction, complete with all electrical heat tracing and insulation to make up the complete unit. In addition to the steel structure, Module 114C contains 25 seamless pipes that transport the oil deposits from the reservoir to the processing facility. Of the 25 pipes, 20 are said to be nonalloy steel and five are said to be alloy steel. This office attempted to verify the chemical composition of the pipes, but only nine of the 24 mill test reports provided to us included a chemical composition for the corresponding pipe. HQ stated in ruling H269853, dated February 19, 2019, because pipe rack modules “are composite articles that cannot be classified by application of GRI 1, we must unequivocally apply GRI 3(b) in reaching a classification determination.” GRI 3(b) provides, in relevant part, that “composite goods consisting of different materials or made up of different components…shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.” You have stated that Module 114C is an integral, modular part of the overall pre-fabricated pipe rack system at NPF. The purpose and function of the pipes in this module is to transport the oil deposits from the reservoir to the processing facility to produce sales quality oil. The purpose of the steel structure is to provide support for the pipes. To this end, we find that the pipes are the most important components in relation to the module’s use and primary function. Therefore, Module 114C will be classified by the pipes that predominate within the module. Although not all mill test reports included a chemical composition, you have stated that 20 out of 25 pipes are nonalloy steel and that all pipes are seamless. According to the mill test reports, the majority of the pipes are manufactured to a line pipe specification of API 5L. The pipes with an outside diameter between 219.10 mm and 355.6 mm and with a wall thickness of 12.7 mm or greater predominate in occurrence and by weight. The applicable subheading for pipe rack Module 114C will be 7304.19.1060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel: line pipe of a kind used for oil or gas pipelines: other: of iron or nonalloy steel: having an outside diameter of 215.9 mm or more but not exceeding 406.4 mm: having a wall thickness of 12.7 mm or more. The rate of duty is 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 merchandise in question may be subject to antidumping duties and countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at https://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the Department of Commerce ITA website at https://www.trade.gov/data-visualization/adcvd-proceedings, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. If you have any questions regarding the ruling, contact National Import Specialist Angelia Amerson at angelia.m.amerson@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division

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. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.If you have any questions regarding the ruling, contact National Import Specialist Angelia Amerson at angelia.m.amerson@cbp.dhs.gov.Sincerely, Steven A. Mack Director National Commodity Specialist Division