OT:RR:CTF:VS H313374 UBB
Victor G. Mena
VM Customs Brokers
9654 Siempre Viva Rd. Ste. 5
San Diego, CA 92154
RE: USMCA Eligibility; Framed Mirrors manufactured in Mexico
Dear Mr. Mena:
This is in response to your request for a ruling on behalf of your client, Crystal Art Gallery, regarding the eligibility for preferential tariff treatment under the United States-Mexico-Canada Agreement (“USMCA”), for framed mirrors manufactured in Mexico.
FACTS:
The subject merchandise are finished mirrors, that you claim are classified under subheading 7009.92.50, Harmonized Tariff Schedule of the United States (HTSUS), composed of glass mirrors, plastic molding, cardboard and kraft paper backing, with hangers. They will be sold exclusively as framed mirrors. The sizes, shapes and colors of the framed mirrors may vary, but the products will be imported and properly identified as mirrors. The reflecting surface of all mirrors will not be under 929 cm2.
You indicate that the framed mirrors will be manufactured in Mexico from components originating from Mexico, China and the United States. You propose to import sheets of unframed mirror, classified under subheading 7009.91.50, Harmonized Tariff Schedule of the United States (HTSUS), and plastic molding, classified under subheading 3926.30.50, HTSUS, from China. You state that the mirror sheets will be cut to shape or will be left as they are depending on the model being manufactured. The plastic molding will be cut to shape and will be used to frame the mirrors. The finished product will be assembled with a cardboard and kraft paper backing, both sourced in Mexico, that will be cut to shape. Metal hangers, classified under subheading 8302.41.60, HTSUS, from China, will be screwed to the back for the customer to be able to hang the mirrors. The mirrors will be packaged and exported with corrugated cardboard “corners” for protection in a cardboard box.
ISSUE:
Whether the subject framed mirrors are eligible for preferential tariff treatment under the USMCA.
LAW AND ANALYSIS:
The United States-Mexico-Canada Agreement (“USMCA”) was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). GN 11 of the HTSUS implements the USMCA. GN 11(a) provides:
Goods that originate in the territory of Mexico, Canada or the United States (hereinafter referred to as “USMCA country” or “USMCA countries” as further defined in subdivision (l)(xxiv) of this note) under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury (including Uniform Regulations provided for in the USMCA), and goods enumerated in subdivision (p) of this note, when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn, followed by the symbol “S” in parentheses, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act; and…
GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states:
For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a "good originating in the territory of a USMCA country" only if—
the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries;
the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials;
the good is a good produced entirely in the territory of one or more USMCA countries using nonoriginating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); or
…
As described above, unframed mirror sheets, plastic molding and metal hangers will be imported into Mexico, where the mirror sheets may or may not be cut to shape and the plastic molding will be cut to shape and used to frame the mirrors. The framed mirrors will then be assembled with a cardboard and kraft paper backing (sourced in Mexico) and the metal hangers will be screwed to the back. The mirrors will then be packaged and exported with corrugated cardboard corners for protection in a cardboard box.
Since the end-product framed mirrors contain non-originating materials, they are not considered goods wholly obtained or produced entirely in a USMCA country under GN 11(b)(i) and they do not qualify under GN 11(b)(ii).
We must next determine whether the framed mirrors qualify under GN 11(b)(iii). We agree with the proposed classification of the framed mirrors under subheading 7009.92.50, HTSUS. The applicable rule of origin for the framed mirrors classified under 7009.92.50, HTSUS, is in GN 11(o)/70.8, HTSUS, which provides “a change to subheading 7009.92 from any other subheading.”
As the non-originating input materials from China classified under subheadings 7009.91.50, HTSUS (mirror sheets), 3926.30.50, HTSUS (plastic molding) and 8302.41.60, HTSUS (metal hangers) undergo processing in Mexico and are in a subheading other than 7009.92, HTSUS, the tariff shift has been met and the framed mirrors are eligible for preferential tariff treatment under the USMCA.
HOLDING:
The framed mirrors classified under subheading 7009.92.50, HTSUS, qualify for preferential tariff treatment under the USMCA.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a [CBP] field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Monika R. Brenner, Chief
Valuation and Special Programs Branch