Schlumberger Technology Corp. v. United States

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Schlumberger, an oil well services provider, imported bauxite proppants from China for use in providing hydraulic fracturing services to U.S. customers. The subject merchandise, when combined with other materials after importation, increased oil well productivity by preventing fractures in rock formations from closing. U.S. Customs & Border Protection classified the subject merchandise under Subheading 6909.19.50 of the Harmonized Tariff Schedule of the United States (HTSUS). That subheading, with a duty rate of four percent, covers “Ceramic wares for laboratory, chemical, or other technical uses; ceramic troughs, tubs and similar receptacles of a kind used in agriculture; ceramic pots, jars and similar articles of a kind used for the conveyance or packing of goods: Other: Other.” The Trade Court rejected that classification and entered summary judgment that the subject merchandise should enter under HTSUS 2606.00.00, as “Aluminum ores and concentrates: Bauxite, calcined: Other.” The Federal Circuit affirmed, after examining the products listed in the subheadings proposed by Customs and noting that, unlike the listed products, the subject proppants do not possess a definite form. View "Schlumberger Technology Corp. v. United States" on Justia Law