OT:RR:CTF:VS H351116 MAT
Ms. Kimberly Tracy
OESL Automotive USA, LLC
2044 Austin Ave
Rochester Hills, MI 48309
RE: Country of Origin; USMCA Eligibility; Applicability of Subheadings 9802.00.40, or
9802.00.80, HTSUS; Semi-Vulcanized Rubber Hoses
Dear Ms. Tracy:
This is in response to your ruling request dated July 18, 2025, filed on behalf of OESL
Automotive USA, LLC (“Importer”), concerning the eligibility of certain semi-vulcanized rubber
hoses for preferential tariff treatment under the United States-Mexico-Canada Agreement
(“USMCA”), applicability for subheadings 9802.00.40, Harmonized Tariff Schedule of the
United States (“HTSUS”), or 9802.00.80, HTSUS, treatment, and country of origin for marking
purposes.
FACTS:
The Importer plans to manufacture the subject rubber hoses in the United States, export
them to Mexico for further processing, and then re-import them into the United States for use as
original parts in passenger vehicles and light trucks in the automotive industry. The
manufacturing of the finished goods will be a three-step process.
Step 1: Initial Manufacturing
In the United States, the semi-vulcanization process for the rubber hoses begins with
compounding, a multi-stage extrusion and reinforcement process. You assert that, first, U.S.
originating chloroprene, classifiable in subheading 4009.11.00, 1 HTSUS, is extruded to form the
core. Then, a layer of U.S. originating nylon 6/66, classifiable in subheading 3908.10.00, 2
1
Subheading 4009.11.00, HTSUS, provides for: “Tubes, pipes and hoses, of vulcanized rubber other than hard
rubber, with or without their fittings (for example, joints, elbows, flanges): Not reinforced or otherwise combined
with other materials: Without fittings.”
2
Subheading 3908.10.00, HTSUS, provides for: “Polyamides in primary forms: Polyamide-6, -11, -12, -6,6, -6,9, -
6,10 or -6,12.”
HTSUS, is applied over the tube. Additional U.S. originating chloroprene is applied as a friction
layer to promote adhesion between the layers. Next, the hose is reinforced with Chinese
originating Aldora PET yarn classifiable in subheading 5604.90.20, 3 HTSUS, which is imported
in its raw form, twisted, treated with an isocyanate dip, and wound on spools for braiding.
Lastly, an additional cover of U.S. originating chloroprene and butyl is extruded over the braided
layer.
During the first stage, partial vulcanization is performed, where controlled heat and
pressure are applied to partially cross-link the rubber’s polymer chains. This results in a semi-
vulcanized hose, which is stable, pliable, and not yet fully cured. The initial manufacturing
sufficiently cures the hoses to preserve their structural integrity upon mandrel removal. The
resulting partially cured hoses are then exported to Mexico to complete the curing process and
shape the hoses into their final, desired form. Although the semi-vulcanized hoses are only
partially cured and not functional in their form at this stage, they are classified in subheading
4009.31.00, 4 HTSUS.
Step 2: Final Processing
In Mexico, the final stage of the vulcanization process includes fully curing the semi-
vulcanized rubber hoses by subjecting them to heat and pressure in an autoclave or oven, which
cross-links the rubber to achieve its ultimate material properties including enhanced elasticity,
tensile strength, and resistance to environmental factors. In addition, the hoses undergo forming,
which involves shaping them into specific configurations (e.g., curves and precise dimensions
from mandrels or molds) during or immediately following the final vulcanization, in conjunction
with additional heat to stabilize the structure. Lastly, the semi-vulcanized rubber hoses are cut to
specified lengths. You assert that the finished semi-vulcanized rubber hoses are classifiable in
subheading 4009.31.00, HTSUS.
Step 3: Re-importation into the United States
The fully cured, semi-vulcanized rubber hoses are imported back into the United States
and are intended for use as original parts in passenger vehicles and light trucks in the automotive
industry.
3
Subheading 5604.90.20, HTSUS, provides for: “Rubber thread and cord, textile covered; textile yarn, and strip
and the like of heading 5404 or 5405, impregnated, coated, covered or sheathed with rubber or plastics: Other: High
tenacity yarn of polyesters, of nylon or other polyamides or of viscose rayon, impregnated or coated (201).”
4
Subheading 4009.31.00, HTSUS, provides for: “Tubes, pipes and hoses, of vulcanized rubber other than hard
rubber, with or without their fittings (for example, joints, elbows, flanges): Reinforced or otherwise combined only
with textile materials: Without fittings.”
2
ISSUES:
1. Whether the semi-vulcanized rubber hoses are eligible for preferential tariff treatment
under the USMCA.
2. Whether the semi-vulcanized rubber hoses qualify for subheadings 9802.00.40, HTSUS,
or 9802.00.80, HTSUS, treatment.
3. Whether the semi-vulcanized rubber hoses are of U.S. or Mexican origin for country of
origin marking purposes under 19 C.F.R. Part 102.
LAW AND ANALYSIS:
1. Eligibility for Preferential Tariff Treatment under the USMCA
The 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)). General Note (“GN”) 11, HTSUS, implements the USMCA and sets forth the
criteria for determining whether a good is an originating good for purposes of the USMCA.
GN 11, HTSUS, states, in relevant part:
(a) Goods originating in the territory of a country named herein, pursuant to the
United States-Mexico-Canada Agreement (USMCA), are subject to duty as
provided herein, including any treatment set forth in subchapter XXIII of
chapter 98 and subchapter XXII of chapter 99 of the tariff schedule. For the
purposes of this note, as provided in the tariff schedule – (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; …
(b) For the purposes of this note, a good imported into the customs territory of the
United States from the territory of a USMCA country … 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 –
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(i) the good is a good wholly obtained or produced entirely in the territory
of one or more USMCA countries;
(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 nonoriginating materials, if the good satisfies
all applicable requirements set forth in this note (including the
provisions of subdivision (o)); …
Here, the goods do not qualify as wholly obtained or produced under GN 11(b)(i) or
produced exclusively from originating materials under GN 11(b)(ii). We must therefore consider
whether the merchandise qualifies as originating under GN 11(b)(iii).
As noted above, the merchandise is classified in subheading 4009.31.00, HTSUS. The
applicable product-specific rule of origin in GN 11(o)/40.9 is underscored and requires:
9. A change to subheading 4009.31 from any other heading, except from headings
4010 through 4017.
The subheading rule for goods of 4009.31, HTSUS, provides that, “[t]he
underscoring of the designations in subdivision 9 pertain to goods provided in subheading
4009.31 for use in a motor vehicle of chapter 87.” Furthermore, Chapter rule 1 for goods
of Chapter 40 provides that “[f]or the purposes of the subdivisions pertaining to this
chapter, whenever the subdivision designation is underscored, the provisions of
subdivision (k) of this note may apply to goods for use in a motor vehicle of chapter 87.”
Here, because the product-specific rule is underscored and the merchandise is for use in a
motor vehicle of chapter 87 (namely, a passenger vehicle or light truck), the provisions of
subdivision (k) may apply.
GN 11(k) provides special rules for automotive goods. GN 11(k)(i) states:
An automotive good and other motor vehicles and parts described herein shall be
subject to applicable requirements set forth in this paragraph, including, with
respect to a passenger vehicle or light truck that has been authorized to use the
alternative staging regime described under subparagraph (viii), applicable
requirements for the duration of the alternative staging period specified in the
approval.
GN 11(k)(ii)(E)(2) includes in the definition of an “automotive good” any “part,
component or material listed in table A.1, A.2, B, C, D, or E of the automotive appendix, subject
to any provisions that may be included in regulations issued by the Secretary of the Treasury.”
GN 11(k)(ii)(D) defines “automotive appendix” as “. . . the Appendix to Annex 4-B of the
USMCA (relating to the product-specific rules of origin for automotive goods, as reflected in
subdivision (o) of this note).”
4
Examining Table C of the automotive appendix “Complementary Parts for Passenger
Vehicles and Light Trucks,” the following goods of heading 4009 are listed:
• 4009.12 – Tubes, pipes and hoses of vulcanised rubber other than hard rubber, not
reinforced or otherwise combined with other materials, with fittings.
• 4009.22 – Tubes, pipes and hoses of vulcanised rubber other than hard rubber,
reinforced or otherwise combined only with metal, with fittings.
• 4009.32 – Tubes, pipes and hoses of vulcanised rubber other than hard rubber,
reinforced or otherwise combined only with textile materials, with fittings.
• 4009.42 – Tubes, pipes and hoses of vulcanised rubber other than hard rubber,
reinforced or otherwise combined with other materials, with fittings.
Here, however, the subject semi-vulcanized rubber hoses are classified in 4009.31,
HTSUS, and unlike the goods listed above, do not contain fittings. Further, while heading 4009
is listed in Table F, it is indicated that the hoses at issue are for use in passenger vehicles and/or
light trucks, and not for use in other vehicles set forth in article 10 of the automotive appendix.
Accordingly, pursuant to GN 11(k)(ii)(E)(2), the subject merchandise is not an “automotive
good” to which the USMCA automotive provisions apply, and whether the goods qualify as
originating will be determined under the applicable product-specific rule of origin in GN
11(o)/40.9.
When determining whether the rule of origin is satisfied, GN 11(d)(i) provides that “[a]
good that is produced in the territory of one or more USMCA countries, by one or more
producers, is an originating good if the good satisfies the requirements of subdivision (b) of this
note and all other applicable requirements.” Therefore, when determining whether the finished
goods qualify as originating when imported into the United States from Mexico, both the U.S.
and Mexican production may be taken into account.
In this case, the sole non-originating material used in the production of the semi-
vulcanized rubber hoses in the United States and Mexico is the Chinese Aldora PET yarn of
5604.90, HTSUS. During the initial manufacturing process, the Chinese Aldora PET yarn
undergoes the required tariff shift from 5604.90, HTSUS, to become semi-vulcanized rubber
hoses of 4009.31, HTSUS. As such, the finished product will qualify as USMCA originating
when imported into the United States from Mexico.
2. Applicability of Subheadings 9802.00.40 or 9802.00.80, HTSUS
a. Subheading 9802.00.40, HTSUS, and Subheading 9802.00.50, HTSUS
Subheading 9802.00.40, HTSUS, provides a full or partial duty exemption for articles
returned to the United States after having been exported to be advanced in value or improved in
condition by means of a repair or alteration, when such repair or alteration is made pursuant to a
warranty. Subheading 9802.00.50, HTSUS, provides the same duty exemption for articles
exported for repairs or alterations made other than pursuant to a warranty. Such articles are
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dutiable only upon the cost or value of the foreign repairs or alterations, provided that the
requirements of 19 C.F.R. § 182.112 are met.
However, the application of these tariff provisions is precluded in circumstances where
the operations performed abroad destroy the identity of the articles or create new or
commercially different articles. See A.F. Burstrom v. United States, 44 CCPA 27, C.A.D. 631
(1957); see also Guardian Industries Corporation v. United States, 3 CIT 9, Slip-Op 82-4 (Jan.
5, 1982).
Treatment under subheadings 9802.00.40, HTSUS, and 9802.00.50, HTSUS, is also
precluded where the exported articles are incomplete for their intended use and the foreign
processing operation is a necessary step in the preparation or manufacture of the finished articles.
See Dolliff & Company, Inc. v. United States, 66 CCPA 77, C.A.D 1225, 599 F.2d 1015 (1979)
(“repairs and alterations are made to completed articles and do not include intermediate
processing operations which are performed as a matter of course in the preparation or the
manufacture of finished articles”). Thus, the focus is upon whether the exported article is
“incomplete” or “unsuitable for its intended use” prior to the foreign processing. See also
Guardian Industries Corp. v. United States, 3 CIT 9 (1982) (finding that the tempering of glass
is not an alteration but part of the manufacturing process because the glass was unsuitable for its
intended use before tempering).
In Headquarters Ruling (“HQ”) 557659, dated January 27, 1994, CBP considered
whether foreign air brushing and hot wire cutting of U.S. originating curtain fabric to highlight
the decorative motifs in the patterns and enhance the design of the fabric constituted an alteration
under subheading 9802.00.50, HTSUS. CBP found that these foreign processes constituted
acceptable alterations considering “the fabric in its exported condition [was] marketed as fabric
for curtains and [was] marketed for the same use after the air brushing and hot-wire cutting
operations, [which] show that the fabric [was] suitable for its intended use, and that it [was]
exported in its completed condition.”
Conversely, in HQ 555085, dated September 27, 1988, CBP determined that foreign
cutting (to size and shape) and polishing of glass sheets constituted operations which exceeded
repairs or alterations. CBP focused on the fact that “the glass was cut to size and shape, ground
and polished, which [were] all necessary steps in the preparation of the finished window portions
of small machines.” As such, seeing the glass sheets were not finished articles complete nor
suitable for their intended use, the cutting and polishing did not constitute acceptable repairs or
alterations under subheading 9802.00.50, HTSUS.
In the present case, no evidence was provided to CBP as to the existence of repairs or
alterations of the semi-vulcanized rubber hoses nor any indication that a warranty on the
merchandise is at issue here. Without a warranty at issue, subheading 9802.00.40, HTSUS, is
not the appropriate provision for the semi-vulcanized rubber hoses upon re-importation into the
United States.
6
Turning towards subheading 9802.00.50, HTSUS, the semi-vulcanized rubber hoses, like
the glass sheets in HQ 555085, are incomplete and unsuitable articles for their intended use at the
time of exportation to Mexico. After the first stage of manufacturing in the United States, the
hoses contain partially cross-linked rubber polymer chains which results in a stable, pliable, but
not yet fully cured hose. The hoses are cured only enough to preserve their structural integrity
for mandrel removal. As stated by the Importer, once the hoses are exported to Mexico, the
second step of processing includes “fully curing, shaping, and cutting the hoses [as] necessary
components of the manufacturing process of the finished articles.” In line with the reasoning in
Dolliff, the curing, shaping, and cutting processes in Mexico constitute processes of manufacture
(as described in the information furnished to CBP) and clearly exceed the meaning of the terms
“repairs or alterations” under subheading 9802.00.50, HTSUS, again, the applicable provision
here considering a warranty is not involved. Therefore, the semi-vulcanized rubber hoses would
not be entitled to treatment under subheadings 9802.00.40, HTSUS, nor 9802.00.50, HTSUS.
b. Subheading 9802.00.80, HTSUS
Subheading 9802.00.80, HTSUS, provides a partial duty exemption for:
[a]rticles assembled abroad in whole or in part of fabricated components, the product of
the United States, which (a) were exported in condition ready for assembly without further
fabrication, (b) have not lost their physical identity in such articles by change in form,
shape, or otherwise, and (c) have not been advanced in value or improved in condition
abroad except by being assembled and except by operations incidental to the assembly
process, such as cleaning, lubrication, and painting.
All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before a
component may receive a duty allowance. An article entered under this tariff provision is subject
to duty upon the full cost or value of the imported assembled article, less the cost or value of the
U.S. components assembled therein, provided the documentary requirements are met pursuant to
19 C.F.R. § 10.24.
19 C.F.R. § 10.16(a) provides that the assembly operations performed abroad may consist
of any method used to join or fit together solid components, such as gluing, laminating, welding
soldering, riveting, force fitting, sewing, or the use of fasteners.
In addition, operations incidental to the assembly process are not considered further
fabrication operations, as they are of a minor nature and cannot always be provided for in
advance of the assembly operations. Examples of operations which are incidental to the
assembly process include trimming, filing, or cutting off of small amounts of excess materials.
See 19 C.F.R. § 10.16(b). However, any significant process, operation or treatment whose
primary purpose is the fabrication, completion, physical or chemical improvement of a
component precludes the application of the exemption under subheading 9802.00.80, HTSUS, to
that component. 19 C.F.R. § 10.16(c).
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In HQ 560766, dated April 17, 1998, CBP assessed whether joining layers of fabric by
applying a rubber adhesive between each layer and subjecting the materials to a vulcanization
and curing process constituted acceptable assembly operations. Similarly, CBP evaluated
whether the lamination of fabric by applying a molten rubber adhesive to three or four layers and
passing the materials through an oven for vulcanization was an “assembly”, in HQ 555361, dated
August 3, 1989. In both cases, CBP determined that the materials underwent vulcanization and
curing processes which adhered solids together, and while the processes resulted in chemical
changes to the rubber components, they did not result in the intermixing of the materials nor a
physical change in identity (e.g., form, shape, or otherwise) to the main components, the fabrics.
Therefore, the adhesion of the fabrics through curing were appropriate assemblies of solids
pursuant to subheading 9802.00.80, HTSUS. See also C.J. Tower & Sons of Buffalo, Inc. v.
United States, 62 Cust. Ct. 643, C.D. 3840, 304 F. Supp. 1187 (1969) (finding that the adhesion
of two types of plastic – one being a molten liquid – to form a single plastic film was an
assembly operation since there was no intermixing of the sheets and the adhesive did not produce
a change in the solid plastic’s physical identity, form, or shape).
In contrast, in HQ 556422, dated March 24, 1992, CBP held that bending aluminum tubes
to specific configurations went beyond mere adjustment of the tubes in the process of assembly
and created the final configuration, which is the essence of the tubing. Thus, “the change in
shape of the aluminum tube [was] a significant process and [could not] be considered an
operation incidental to assembly,” and no allowance in duty was made for the cost or value of the
aluminum tubing. However, CBP made an allowance in duty for the cost or value of the U.S.
rubber hoses which were cut to length and attached to the aluminum tubing after finding that
cutting the rubber hoses to specific lengths was an operation incidental to the assembly process
pursuant to 19 C.F.R. § 10.16(b)(6). See also HQ 557178, dated July 1, 1993, where cutting a
flexible neoprene hose to lengths of 10 feet was considered an acceptable operation incidental to
assembly.
The semi-vulcanized rubber hoses in the case at hand are discernible from the layers of
fabric adhered by rubber compounds and vulcanized in HQ 560766 and HQ 555361. The semi-
vulcanized rubber hoses undergo the second step of processing after exportation to Mexico
which includes “fully curing, shaping, and cutting the hoses [as] necessary components of the
manufacturing process of the finished articles.” Unlike the curing and assembly of the layers of
fabric and rubber in HQ 560766 and HQ 555361, the curing of the semi-vulcanized rubber hoses
involves subjecting them to heat and pressure in an autoclave or oven, which cross-links the
rubber to achieve the ultimate material properties including enhanced elasticity, tensile strength,
and resistance to environmental factors. These processes extend far beyond a simple “assembly”
of the materials.
In addition, the semi-vulcanized rubber hoses undergo forming, which, like bending the
aluminum tubes in HQ 556422, involves shaping the hoses into specific configurations (e.g.,
curves and precise dimensions from mandrels or molds) during or immediately following the
final vulcanization, in conjunction with additional heat to stabilize the structure. Therefore, the
curing and forming processes result in further fabrication and a change in the physical identity of
the hoses in both form and shape. Accordingly, the curing and shaping processes of the semi-
8
vulcanized rubber hoses are not “assembly operations” nor “operations incidental to the
assembly process” and preclude treatment under subheading 9802.00.80, HTSUS.
3. Country of Origin Marking
The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. § 1304),
provides that, unless excepted, every article of foreign origin (or its container) imported into the
United States shall be marked in a conspicuous place as legibly, indelibly and permanently as the
nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate
purchaser in the United States the English name of the country of origin of the article.
Congressional intent in enacting 19 U.S.C. § 1304 was that the ultimate purchaser should be able
to know by an inspection of the markings on the imported goods the country of which the good is
the product. “The evident purpose is to mark the goods so at the time of purchase the ultimate
purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy
them, if such marking should influence his will.” United States v. Friedlaender & Co., 27
C.C.P.A. 297 at 302 (1940).
Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. Part
134) implements the country of origin marking requirements and exceptions of 19 U.S.C. §
1304. Section 134.1(b) defines “country of origin” as “the country of manufacture, production,
or growth of any article of foreign origin entering the United States. Further work or material
added to an article in another country must effect a substantial transformation in order to render
such other country the ‘country of origin’ within the meaning of [the marking laws and
regulations].”
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate
quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR
35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin
for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11
provides a hierarchy for determining the country of origin of a good for marking purposes. See
19 C.F.R. § 102.11(a). Since the goods will be imported from Mexico, section 102 will govern
the determination of whether the goods are products of Mexico.
Section 102.11(a) provides a hierarchy for determining the country of origin of a good for
marking purposes. Applied in sequential order, the hierarchy establishes the country of origin of
a good is the country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change
in tariff classification set out in § 102.20 and satisfies any other applicable
requirements of that section, and all other applicable requirements of these rules are
satisfied.
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“Material” means “a good that is incorporated into another good as a result of production
with respect to that other good, and includes parts, ingredients, subassemblies, and components.”
19 C.F.R. § 102.1(l).
“Foreign material” is defined in Section 102.1(e) as “a material whose country of origin
as determined under these rules is not the same country as the country in which the good is
produced.”
Here, the subject semi-vulcanized rubber hoses are made from the partially cured hoses
and are therefore neither “wholly obtained or produced” nor “produced exclusively from
domestic materials.” Thus, paragraphs (a)(1) and (a)(2) cannot be used to determine their
country of origin, and we must apply paragraph (a)(3). The tariff shift requirement in 19 C.F.R.
§ 102.20 for goods of heading 4009, HTSUS, which applies to the rubber hoses at issue, states:
A change to heading 4006 through 4010 from any other heading, including another
heading within that group.
As mentioned above, the semi-vulcanized rubber hoses are exported from the United
States to Mexico to be fully cured via heat and pressure treatment, formed to specific
configurations, and then cut to certain finished lengths. The cured, formed, and cut semi-
vulcanized rubber hoses are then re-imported back into the United States from Mexico. Prior to
the heat and pressure treatment and finishing operations in Mexico, the subject merchandise is
classified under heading 4009, HTSUS. Following the heat and pressure treatment and finishing
operations in Mexico, the subject merchandise remains classified under heading 4009, HTSUS.
As the semi-vulcanized rubber hoses do not undergo a change in tariff classification, the rule set
forth in 19 C.F.R. § 102.20 is not met.
As the country of origin of the semi-vulcanized rubber hoses cannot be determined
pursuant to 19 C.F.R. § 102.11(a), we turn to 19 C.F.R. § 102.11(b). Section 102.11(b)(1)
provides, in pertinent part, that “where the country of origin cannot be determined under
paragraph (a) of the section, the country of origin of the good is the country or countries of origin
of the single material that imparts the essential character to the good.” Section 102.18(b)(1)
provides that “for purposes of identifying the material that imparts the essential character to a
good under § 102.11, the only materials that shall be taken into consideration are those domestic
or foreign materials that are classified in a tariff provision from which a change in tariff
classification is not allowed under the § 102.20 specific rule or other requirements applicable to
the good.”
Here, the single material is the partially cured semi-vulcanized hose of subheading
4009.31.00, HTSUS. Therefore, the country of origin of the finished hose will be the country of
origin of the partially cured hose. The partially cured hose is produced in the United States and
is composed of U.S. originating chloroprene, nylon 6/66, and butyl as well as Chinese Aldora
PET yarn. As the partially cured hose meets the requisite tariff shift in the United States, the
partially cured hose is considered a product of the United States, and pursuant to 19 C.F.R. §
10
102.11(b), the country of origin of the finished hose is the United States. 5 Please note that if you
wish to mark the goods or the packaging to indicate that they are “Made in the USA,” the
marking must comply with the requirements of the Federal Trade Commission (“FTC”). We
suggest that you direct any questions on this issue to the FTC.
HOLDING:
The semi-vulcanized rubber hoses are USMCA originating and may qualify for
preferential tariff treatment when imported into the United States from Mexico.
The semi-vulcanized rubber hoses are not entitled to treatment pursuant to subheadings
9802.00.50, HTSUS, or 9802.00.80, HTSUS.
Pursuant to 19 C.F.R. § 102.11(b)(1), the country of origin of the semi-vulcanized rubber
hoses is the United States.
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 & Special Programs Branch
5
We also note that, under the substantial transformation standard, the processing in Mexico does not result in a
change in name, character, or use. Based on the information provided, the last substantial transformation occurs in
the United States, where the partially cured hose is produced, as this material imparts the essence to the final
product. Therefore, under this standard, the country of origin of the good is likewise the United States.
11