CLA-2-42:OT:RR:NC:N4:441
Joaquin Barragan
R.L. Jones Customhouse Broker
8830 Siempre Viva Road, Suite 100
San Diego, CA 92154
RE: The Classification and Eligibility of the United States-Mexico-Canada Trade Agreement (USMCA) for Suitcases from Mexico
Dear Mr. Joaquin:
This is in response to your letter dated October 18, 2022, on behalf of your Client Easy Pack Luggage, requesting a ruling on classification, and the eligibility of the USMCA, on plastic suitcases.
The articles at issue are plastic rolling suitcases that are structured and rigid on all sides. They are available in three sizes: 21”, 24”, and 28”. You have indicated in your submission that all the parts, materials, and components (the body, handle, lining, hardwear, thread, cover, etc.) are of Chinese origin. You have also indicated that all the assembly steps will be completed in a factory in Mexico.
The applicable subheading for the suitcases will be 4202.12.2120, Harmonized Tariff Schedule of the United States (HTSUS), which provides for trunks, suitcases, vanity cases, attaché cases, briefcases, school satchels and similar containers, with outer surface of plastics, suitcases, structured, rigid on all sides. The general rate of duty is 20 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
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 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—
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 non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o));
Since the suitcase contains non-originating ingredients, it is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i), nor are the products produced exclusively from originating materials per GN 11(b)(ii). Thus, we must determine whether the product qualifies under GN 11(b)(iii). As previously noted, the suitcase is classified under subheading 4202.12.21, HTSUS. The applicable rule of origin for goods classified under subheading 4202.12.21, HTSUS, is in GN 11(o)/ 42.3, HTSUS, which provides, in relevant part:
A change to subheading 4202.12 from any other chapter, except from headings 5407, 5408 or 5512 through 5516, or fabric of man-made fibers of subheading 5903.10, fabric of man-made fibers of subheading 5903.20, fabric of man-made fibers of subheading 5903.90, fabric of man-made fibers of subheading 5906.99 or fabric of man-made fibers of subheading 5907.00.
All the components undergo a change from another subheading to 4202.12 and none of the materials are previously classified in any of the headings excluded by applicable rule described above. Therefore, based on the facts provided, the goods described above qualify for USMCA preferential tariff treatment. The goods will therefore be entitled to a free rate of duty under the USMCA upon compliance with all applicable laws, regulations, and agreements.
The holding set forth above applies only to the specific factual situation and merchandise descriptions as identified in the ruling request. This position is clearly set forth in 19 C.F.R. § 177.9(b)(1). In the event that the facts or merchandise are modified in any way, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and you should resubmit for a new ruling in accordance with 19 C.F.R. § 177.2.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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 Vikki Lazaro at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division