The tariff classification and status under the North American Free Trade Agreement (NAFTA), of drill pipe string from Canada; Article 509

NY A88413 October 16, 1996 CLA-2-84:RR:NC:1:106 A88413 CATEGORY: Classification TARIFF NO.: 8431.43.8010 Ms. Linda Boortz E. R. Hawthorne & Company, Inc. 9370 Wallisville Road Houston, TX 77013 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of drill pipe string from Canada; Article 509 Dear Ms. Boortz: In your letter dated October 1, 1996, on behalf of your client, Grant Prideco, Inc., you requested a ruling on the status of drill pipe string from Canada under the NAFTA. In your request you state that American-made drill pipe of various diameters will be exported to Canada where Canadian-made pin and box tool joints will be permanently welded on to the drill pipe to form a finished drill pipe string. Drill strings are themselves parts of drill stems used with boring or extracting machinery, specifically, in this case, in oil and natural gas fields. The applicable tariff provision for the permanently assembled drill pipe string will be 8431.43.8010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for parts for oil and gas field machinery. The general rate of duty will be 1.5 percent ad valorem. The permanently assembled drill pipe string, being wholly obtained or produced entirely in NAFTA territories, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party. 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 Patrick Wholey at 212-466-5668. Sincerely, Roger J. Silvestri Director National Commodity Specialist Division