OT:RR:CTF:VS H342978 JH
Liliana Carranza
Uni-Trade Brokers LC
130 Flecha Lane,
Laredo, TX 78045
RE: USMCA; Automotive Windshield
Dear Ms. Carranza:
This is in response to your October 14, 2024 ruling request, filed on behalf of Cristales
Inastillables de Mexico SA de CV (““importer”), regarding the eligibility for preferential tariff
treatment under the United States-Mexico-Canada Agreement (“USMCA”) for an automotive
windshield.
We note that the country of origin of this merchandise for marking purposes and for
purposes of applying trade remedies under Section 301 of the Trade Act of 1974 was already
addressed in New York Ruling Letter (NY) N343290, dated November 11, 2024.
FACTS:
The importer produces an automotive windshield which will be used as original
equipment in the manufacture of the Volkswagen ID Crozz SUV. The automotive windshield is
produced in Mexico before being sent to the United States for assembly into the vehicle. You
state that the automotive windshield is classified under subheading 8708.22, Harmonized Tariff
Schedule of the United States (“HTSUS”). According to the bill of materials, the automotive
windshield is manufactured in Mexico with USMCA originating materials, and the following
nonoriginating materials:
Flat Glass- 7005.21
Bracket- 3926.90
Rain Sensor Bracket—9025.90
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The manufacturing process is initiated when the flat glass is imported into Mexico. The
“flat” glass undergoes heating in a furnace up to 634°C, passing through 380 ceramic rollers at a
speed of 170 mm per second. Upon exiting the furnace, the glass goes through a pre-bending
process that applies a bending axis. It then enters the press area, where a hot ring at 500°C lifts
the glass as soon as it reaches the correct position and raises it until it contacts the male mold,
which has a temperature of 450°C. The glass is bent by a pressing process, applying the final
curvature along two axes, as specified in the shape specification sheet. The glass is then received
by an anneal ring. When it reaches its annealing position, the glass is cooled to give the glass its
final strength and shape. After annealing, the glass is lifted by the "hood" using suction, and
unloaded onto a cooling conveyor, whose function is to lower the glass temperature so it can be
manually unloaded.
After the bending procedure is finished, it is laminated and sensors, brackets, and pins are
installed to form the finished product, an automotive windshield.
ISSUE:
Whether the automotive windshield is eligible for USCMA preferential tariff treatment?
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:
(i) 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; …
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:
(i) the good is a good wholly obtained or produced entirely in the territory of
one or more USMCA countries;
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(ii) the good is a good produced entirely in the territory of one or more
USMCA countries, exclusively from originating materials;
(iii) the good is a good produced entirely in the territory of one or more
USMCA countries using non originating materials, if the good satisfies all
applicable requirements set forth in this note (including the provisions of
subdivision (o)); or …
Here, the merchandise will be produced in Mexico using some nonoriginating materials.
Therefore, the merchandise will not qualify as originating pursuant to GN 11(b)(i) or (ii). We
must therefore consider whether the merchandise qualifies as originating pursuant to GN
11(b)(iii).
As noted in the compilers note to General Note 1, Additional U.S. Rules of Interpretation,
HTSUS: “[t]he new United States-Mexico-Canada Free Trade Agreement, are set forth in terms
of HS 2012 and may not contain current tariff numbers for some products.” That is the case
here, as GN 11 contains no rule of origin for goods of subheading 8708.22, HTSUS. Applying
HS 2012, the classification for the goods is 8708.29, HTSUS.
Three rules are set forth for subheading 8708.29, HTSUS. GN 11(o)/87.24 refers to a
body stamping which is inapplicable here because the goods are not a “body stamping.” GN
11(o)/87.25 requires for any other good of subheading 8708.29 for use in a passenger vehicle,
light truck or heavy truck: . . .
(A) A change to subheading 8708.29 from any other heading; or
(B) No change in tariff classification to a good of subheading 8708.29, provided there is
regional value content not less than 70 percent under the net cost method
Furthermore, there is a subheading rule for 8708.29 which states:
The underscoring of the designations in subdivisions 24 through 26 pertain to
goods provided for in heading 8708.29. If the good is a body stamping for use in a
passenger vehicle or light truck, Articles 3.2 and 3.3 of the automotive appendix
apply. If the good is any other good for use in a passenger vehicle or light truck,
Article 3.4 of the automotive appendix applies. If the good is for use in a heavy
truck, Article 4.2 of the automotive appendix applies. If the good is for use in a
vehicle specified in paragraphs 1 and 2 of Article 10, Articles 10.1 and 10.2 of the
automotive appendix apply.
As the automotive windshield is any other good for use in a passenger vehicle, Article
3.4 of the automotive appendix applies. Article 3.4 is also set forth in GN 11(k)(iii)(D) which
states:
Notwithstanding subdivision (o) of this note, the regional value content requirement for a
part listed in Table B of the automotive appendix that is for use in a passenger vehicle or
light truck is:
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...
(4) 70 percent under the net cost method or 80 percent under the transaction value
method, if the corresponding rule in subdivision (o) includes a transaction
value method, beginning on January 1, 2023, and thereafter.
Notwithstanding any regional value content requirement in this subparagraph, a part
listed in Table B of the automotive appendix is originating if it meets the applicable
change in tariff classification requirement provided in subdivision (o) of this note.
Section 14(15) of the USMCA Rules of Origin Regulations, Appendix A to Part
182, Customs Regulations (19 C.F.R. Part 182. App., Part VI, Sec. 14(15)) provides
further guidance on the applicability of GN 11(k)(iii)(D). 85 Fed. Reg. 39690, 39721
(July 1, 2020). Section 14(15) provides in pertinent part that the RVC requirements for
automotive goods listed in Table B of the Automotive Appendix apply to goods for use
as OEM parts. We note that the automotive windshield is for use as an OEM part in a
passenger vehicle or light truck and goods of 8708.29 are listed in Table B of the
automotive appendix. However, since none of the nonoriginating components are
classified under heading 8708, HTSUS, we look to Rule 87.25(A) above, which does not
include an RVC requirement. Therefore, the RVC requirements of GN 11(k)(iii)(D) do
not apply.
Since none of the nonoriginating components are classified under heading 8708,
HTSUS, the automotive windshield meets the tariff shift requirement of GN
11(o)/87.25(A). Therefore, the automotive windshield is eligible for preferential tariff
treatment under the USMCA.
HOLDING:
The automotive windshield qualifies 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.”
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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
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