Cole International Inc.
Suite 223, The Airway Centre
5955 Airport Road
Mississauga, ON L4V 1R9
RE: The country of origin marking of bicycles assembled in Canada using foreign components
Dear Ms. Mihalceanu:
This is in response to your letter dated April 5, 2018, on behalf of Louis Garneau Sports Inc., requesting a ruling on the country of origin marking of bicycles assembled in Canada using foreign components.
The model at issue is identified as the Gennix A1 Elite bicycle, which is designed for use with tires having a cross-sectional diameter not exceeding 4.13 centimeters (cm) with a clearance of 4 millimeters (mm) between the tire and fork. The weight of the bicycle is 17.6 pounds or 7.98 kilograms (kg) without accessories.
In your submission, you are proposing the Gennix A1 Elite bicycle to be marked “Assembled in Canada from foreign components”. Per the information provided, the components of the bicycle are produced in a variety of countries, such as Canada, China, Malaysia, Thailand, Japan and Taiwan. You also indicate that the individual components are not marked with the respective country of origin from which they are sourced. The collective components are combined with one another in Canada, painted and packaged together to form the complete bicycle. It is further noted that Louis Garneau Sports Inc. will be importing the bicycles at issue into the United States in an assembled state with no further components to be added to the bicycle upon importation.
The bicycle is processed in Canada prior to being imported into the United States. Since Canada is defined under 19 CFR 134.1(g) as a NAFTA country, we must apply the NAFTA Marking Rules in order to determine if the goods are subject to the NAFTA marking requirements.
Part 102 of the regulations sets forth the NAFTA Marking Rules. Section 102.11 of the regulations sets forth the required hierarchy for determining country of origin for marking purposes. Section 102.11(a) states that 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 as set out in section 102.20 and satisfies any other applicable requirements of that section.
Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the Gennix A1 Elite bicycle. Bicycles of this type are generally classified in heading 8712. Section 102.20 for subheadings 8711-8713 requires a change to heading 8711 through 8713 from any other heading, including another heading within that group, except from heading 8714 when that change is pursuant to General Rule of Interpretation 2(a). Based on the information provided with your submission, the assembled Gennix A1 Elite bicycle does not meet the requisite tariff shift.
Section 102.11(b) states that except for a good that is specifically described in the Harmonized System as a set, or classified as a set pursuant to General Rule of Interpretation 3, where the country of origin cannot be determined under paragraph (a) of section 102.11, then 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.
In HQ 735368, dated June 30, 1994, Customs issued a ruling on the country of origin of bicycles imported from Taiwan. In the ruling, we noted that the bicycle frame is the most costly component and is one of the essential components of the bicycle (if not the most essential component) imparting to the bicycle its overall shape, size and character. Consequently, it can be inferred that the essential character of a bicycle is imparted by its frame.
As noted above, Louis Garneau Sports Inc. assembles, paints, and packages the Gennix A1 Elite bicycle in Canada from Chinese and other foreign origin components. According to the “Costed Bill of Materials” document submitted with the ruling request, the bicycle frame, along with the forks and seat, are produced in China. As a result, in accordance with Section 102.11(b), the country of origin of the Gennix A1 Elite bicycle will be China for marking purposes.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Roseanne Murphy at [email protected].
Steven A. Mack
National Commodity Specialist Division