OT:RR:CTF:VS H359926 LCW/ACH
Center Director, Ann Marie Paul
Industrial and Manufacturing Materials CEE
U.S. Customs and Border Protection
726 Exchange Street
Buffalo, NY 14210
Attn: Salvatore Giangreco-Marotta, Import Specialist, Industrial and Manufacturing Materials
CEE
RE: Application for Further Review of Protest No. 2304-26-103935; Vitracoat America, Inc.;
USMCA Preference Eligibility for Polyester Powder Coatings
Dear Center Director Paul:
This is in response to an Application for Further Review (“AFR”) of Protest Number 2304-
26-103935, timely filed on April 8, 2026, on behalf of Vitracoat America, Inc. (“Vitracoat” or
the “Protestant”), concerning preferential tariff treatment under the United States-Mexico-
Canada Agreement (“USMCA”) for polyester powder coatings. The AFR was forwarded to this
office for consideration.
FACTS:
On July 30, 2024, Vitracoat entered powder coatings at the Port of Laredo, Texas under
subheading 3907.99.50, Harmonized Tariff Schedule of the United States (“HTSUS”). Vitracoat
states that the coatings are more durable, scratch-resistant, and environmentally responsible than
other finishes. The thermosetting powder coatings are 100% solid and contain a catalyst that
chemically reacts when exposed to heat or radiant energy curing.
The powder coatings consist of polyester resin, barium sulfate, titanium dioxide,
dicyandiamide, pigments, and mineral fillers. The ingredients are melted into a mix, ground into
a uniform powder, applied via electrostatic spray deposition, and cured to produce high-density
chemical cross-linking. These ingredients give the product characteristics such as shine and
durability. The powder is sprayed via electrostatic equipment onto a metal substrate. It adheres
via positive/negative charge and passes through a curing oven where the thermal polymer reacts
chemically to form a uniform plastic film.
The following product lines are at issue in this protest:
• VitraSOL (architectural coatings): High-performance, durable coatings designed
for architectural applications (aluminum or steel), suitable for interior and exterior
use;
• VitraXtreme (super durable corrosion resistant [“SDCR”]): Designed for heavy
machinery such as bulldozers and cranes. Uses SDCR technology to provide
corrosion resistance and UV protection in a single step, replacing traditional two-
coat systems;
• VitraBOND (metallic bonded coatings): A patented process incorporating heat and
high-density mixing to encapsulate metallic flakes within the powder particle. This
ensures a consistent finish and better faraday cage penetration, unlike dry-blended
metallics;
• VitraHEAT (high-temperature resistant):
o Level I: Up to 315°C (grills, toasters)
o Level II: Up to 450°C (commercial grills)
• VitraSLIP (low friction): Provides a very low coefficient of friction for sliding
parts; and
• VitraCLEAN (anti-graffiti): Resistant to staining and allows for easy cleaning of
markers and spray paint.
The powder coatings at issue are used in the following industries:
• Agricultural and Construction Equipment, including tractors, trailers, bulldozers,
forklifts, cranes, and mining equipment;
• Architectural, including aluminum extrusions, windows, fencing, and light poles;
• Automotive, including under-hood, exterior trim, wheels, and toolboxes;
• Appliances, including refrigerators, washers and dryers, dishwashers, water
heaters, and microwaves;
• Heating, Ventilation, and Air Conditioning (“HVAC”);
• Electrical Enclosures, including electrical cabinets, switchboxes, transformers,
motors, and computers;
• General Industry, including bicycles, motorcycles, recreational vehicles (“RVs”),
shelving, and sports equipment; and
• Gardening, including mowers, trimmers, and snow blowers.
Vitracoat states that the entire production process takes place in Mexico at the facilities of
Vitracoat Pinturas en Polvo S.A. de C.V. The main ingredient of the powder is polyester resin,
which initially arrives in the form of small, crystallized flakes. The resin is mixed with curing
agents, additives, pigments, and fillers. The major materials are weighed automatically, and the
minor ingredients are micro-weighed manually based on pre-determined formulations, and all
ingredients are loaded into a pot. The pot is placed in a high-speed mixer where the materials are
blended. The mix is then transferred to the extruders, and a sample is sent to the laboratory for
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testing where the melting point, gel time, and specific gravity are tested. The extrusion process
uses heat and mechanical shear to transform the initial dry powder mixture into a semi-liquid
fluid. Thickness, color, gloss, hardness, impact resistance, adhesion, and contamination are also
evaluated.
Once the mix is approved, the full batch is extruded, and the materials are melted, mixed,
and cooled into chips. During this stage, the mixture is dispersed, homogenized, and fused,
allowing the melted resin to encapsulate the pigments and additives. Once extruded and cooled,
the original input materials can no longer be physically separated. After the heating and
dispersion phase, the semi-liquid fluid is pressed by cooling rollers to create a long, solid sheet.
This sheet is then stretched and toasted before being ground into its final powder form. The mix
is ground into fine particles, and the particles are classified to separate very fine and coarse
particles using classifying mills with cyclones and screens. A sample is then tested with a laser
diffraction particle size analyzer for particle size distribution, finish, and contamination.
ISSUE:
Whether the polyester powder coatings made in Mexico from non-originating materials
are eligible for preferential tariff treatment under the USMCA.
LAW AND ANALYSIS:
We note that this matter is protestable under 19 U.S.C. § 1514(a)(5) as a decision relating
to the liquidation or reliquidation of an entry. The protest was timely filed, within 180 days of
liquidation for the entry. See Miscellaneous Trade and Technical Corrections Act of 2004, Pub.
L. 108-429, § 2103(2)(B)(ii) - (iii) (codified as amended at 19 U.S.C. § 1514(c)(3) (2006)).
Further review of this protest is properly accorded to the importer pursuant to 19 CFR §
174.24(b) because the issues protested involve questions of law or fact, which have not been
ruled upon.
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 of the HTSUS implements the USMCA. 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—
(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 nonoriginating materials, if the good satisfies all
applicable requirements set forth in this note (including the provisions of
subdivision (o)); …
As noted above, GN 11(b)(iii) indicates that a good may be considered an originating
good of a USMCA country if the good satisfies all applicable requirements set forth in GN 11.
Vitracoat states that the coatings qualify as originating goods of a USMCA country in
accordance with the terms of GN 11(n)(v)(D), which states that:
A good of chapter 39 is an originating good if the deliberate and proportionally-
controlled mixing or blending (including dispersing) of materials, other than the
addition of diluents, to conform to predetermined specifications occurs in the
territory of one or more of the USMCA countries, resulting in the production of a
good having essential physical or chemical characteristics that are relevant to the
purposes or uses of the good and are different from the input materials.
As previously noted, the coatings are classified under subheading 3907.99.50, HTSUS,
and therefore may qualify as originating under this rule.
In Headquarters Ruling Letter (“HQ”) H312506, dated October 7, 2020, CBP determined
that polyvinyl chloride (“PVC”) plasticized compound qualified as an originating good of a
USMCA country under General Note 11(n)(v)(D) because the PVC compound was produced
through the precise and deliberate mixing of ingredients, resulting in a new product with
different physical characteristic than the input materials.
In this case, the powder coatings are made through a process of deliberate and
proportionally-controlled mixing and blending. The ingredient amounts needed for each mixture
are set out in a specific formula, and the ingredients are weighed to ensure the mixture contains
the necessary portions of each ingredient. Further, the powder coatings have essential physical
characteristics that are relevant to the purpose and use of the goods. As previously stated,
Vitracoat makes a variety of powder coatings specifically designed to be used in a variety of
industries. The physical characteristics of the coatings, including corrosion resistance, UV
protection, heat protection, and stain resistance, are relevant to their uses on outdoor machinery,
grills, walls, and architectural elements. For these reasons, the powder coating is deliberately
mixed and has physical characteristics relevant to its uses and different from the input materials.
Based on the information outlined above, we find that the finished product meets the
definition of an originating good of a USMCA country in accordance with General Note
11(n)(v)(D). As a result, the PVC compound produced in Mexico will qualify for preferential
treatment under the USMCA.
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HOLDING:
This protest should be GRANTED. Based on the information provided, we find that the
imported polyester powder coatings classified under 3907.99.50, HTSUS, qualify for preferential
tariff treatment under the USMCA. Protest No. 2304-26-103935 is referred back to your Center
for appropriate action.
You are instructed to notify the importer, through the importer’s counsel, of this decision
no later than 60 days from the date of this decision. Any reliquidation of the entry or entries in
accordance with the decision must be accomplished prior to this notification. Sixty days from
the date of the decision, the Office of Trade, Regulations and Rulings will make the decision
available to CBP personnel and the public on the Customs Rulings Online Search System
(CROSS) at https://rulings.cbp.gov/, or other methods of public distribution.
Sincerely,
For Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
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