N292493 N2 Ruling Active

The tariff classification of an ethane processing complex.

Issued December 19, 2017 by U.S. Customs and Border Protection.

Tariff classification

HTS codes: 8419.40.0080

Headings: 8419

Product description

Literature was submitted with your request. The subject merchandise is a complete ethane processing complex that will be constructed in a U.S. foreign trade zone (FTZ). It will consist of various interconnected units and subunits. The units include steam cracking furnaces, a Quench Tower, a Caustic Wash Tower, gas driers, a Deethanizer, an Acetylene Hydrogenation vessel, a DeMethanizer and a C2 splitter. The principal function of the complex is to produce purified ethylene from an ethane feedstock. The purified ethylene is further processed in subunits, such as in the polyethylene module, which adjusts ethylene to a specific temperature and pressure to form polyethylene pellets and the mono-ethylene glycol module. Ethane that is cycled through the ethane processing complex and not transformed into purified ethylene is recycled through the units.

CBP rationale

LLC you requested a tariff classification ruling. Literature was submitted with your request. The subject merchandise is a complete ethane processing complex that will be constructed in a U.S. foreign trade zone (FTZ). It will consist of various interconnected units and subunits. The units include steam cracking furnaces, a Quench Tower, a Caustic Wash Tower, gas driers, a Deethanizer, an Acetylene Hydrogenation vessel, a DeMethanizer and a C2 splitter. The principal function of the complex is to produce purified ethylene from an ethane feedstock. The purified ethylene is further processed in subunits, such as in the polyethylene module, which adjusts ethylene to a specific temperature and pressure to form polyethylene pellets and the mono-ethylene glycol module. Ethane that is cycled through the ethane processing complex and not transformed into purified ethylene is recycled through the units. The applicable subheading for the ethane processing complex will be 8419.40.0080, Harmonized Tariff Schedule of the United States, 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: Distilling or rectifying plant. The general 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 on the World Wide Web at https://hts.usitc.gov/current.

Full text

N292493 December 19, 2017 CLA-2-84:OT:RR:NC:N1:102 CATEGORY: Classification TARIFF NO.: 8419.40.0080 H. Michael Leightman Ernst & Young LLP 1401 McKinney Street Suite 1200 Houston, Texas 77010 RE: The tariff classification of an ethane processing complex. Dear Mr. Leightman: In your letter dated November 29, 2017 on behalf of GCGV Asset Holding LLC you requested a tariff classification ruling. Literature was submitted with your request. The subject merchandise is a complete ethane processing complex that will be constructed in a U.S. foreign trade zone (FTZ). It will consist of various interconnected units and subunits. The units include steam cracking furnaces, a Quench Tower, a Caustic Wash Tower, gas driers, a Deethanizer, an Acetylene Hydrogenation vessel, a DeMethanizer and a C2 splitter. The principal function of the complex is to produce purified ethylene from an ethane feedstock. The purified ethylene is further processed in subunits, such as in the polyethylene module, which adjusts ethylene to a specific temperature and pressure to form polyethylene pellets and the mono-ethylene glycol module. Ethane that is cycled through the ethane processing complex and not transformed into purified ethylene is recycled through the units. The applicable subheading for the ethane processing complex will be 8419.40.0080, Harmonized Tariff Schedule of the United States, 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: Distilling or rectifying plant. The general 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 on the World Wide Web at https://hts.usitc.gov/current. This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Sandra Martinez at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division

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