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Home > HTS Heading 8431
Published December 10, 2011 by Yuri Starikov

Classification Principles: Whether the product is a “Drilling Part” of “Downhole Part” (8431.43 v. 8479.89)

When the equipment parts have downhole applications, they are to be classified as a boring or sinking machinery (8431.43…) only if these parts are directly related (emphasis added) to the function / facilitation of boring or sinking.  Otherwise, they are to be classified as downhole equipment under 8479.89. N076953 (Machinery for fishing, coring, washover… is 8479.89, machinery for facilitation of drilling is 8431.43); N072426 (Machinery used in production phase, post drilling phase, extraction phase is not “boring or sinking machinery” under 8431.43, but rather downholle machinery under 8479.89); N084298 (casing hangers / bracket supports designed to fit on a wellhead in order to suspend the weight of casing strings in the well, although used in wells, are associated with well boring or sinking but rather well casing – 8479.89 therefore applies); N018132 (Liner hangers used during the drilling process to join casing to liner are not pars of drilling machinery but are components of well completion process, thus 8479.89 applies); I888206 (Crossover subs are part of the drilling process, thus classified as a part of the drilling machinery under 8431.43)

Read More Classification Principles: Whether the product is a “Drilling Part” of “Downhole Part” (8431.43 v. 8479.89)

Product Regulation

Harmonized Tariff Schedule Classification HTS Heading 8431 HTS Heading 8479 Oil & Gas Products

Published December 8, 2011 by Yuri Starikov

Classification Principles: Whether the product is a “Part of Offshore Platform” or is classified elsewhere (8431.43.40 v. other)

When the primary application of the product is on offshore drill platform (as opposed to having both land and offshore applications), that product is classified as the platform (8431.43.40).  See N025539 (classifying drill collar bars used primarily on offshore drill platforms, as the parts of offshore production platforms).

Read More Classification Principles: Whether the product is a “Part of Offshore Platform” or is classified elsewhere (8431.43.40 v. other)

Product Regulation

Harmonized Tariff Schedule Classification HTS Heading 8431 Oil & Gas Products

Published March 25, 2009 by Yuri Starikov

Blowout Preventer Valves (BOPs)

The CBP decision in HQ H007677 regarding blowout preventers (BOP) is another example to the oilfield industry that customary practices of using “blanket” HTS for all of its products, such as 8431.43 (parts of offshore oil and natural gas drilling and production platforms; parts of oil and gas filed machinery) may not always work. At least in those situations where duty is involved. The counsel tried really hard to persuade CBP that BOP is actually a part of the entire blowout preventer control system that is part of boring machinery (8431.43 / Duty Free). And it succeeded on the merits. CBP agreed thatt “BOPs are integral constituent component of oil and gas drilling activity and are in fact “parts” desinged for use therein. Counsel’s argument, however, did not survive procedural scrutiny. Counsel cited Mitsibishi v. US, 22 F.3D 1102 (CAFC 1993), where slag box was found to be integral part of casting machine despite the fact that it was not involved in the casting process. While analagy parallels the issue, the thrust of the argument needed to focus on why Section XVI Note 2(a) should not be dispositive. Citing legal notes and expanatory text, CBP held that BOPs are appropriately…

Read More Blowout Preventer Valves (BOPs)

Product Regulation U.S. Federal Agencies

Customs and Border Protection Harmonized Tariff Schedule Classification HTS Heading 8431 Oil & Gas Products

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