Ian Povey
TAG Hardware
19072 26 Avenue, Suite 100 Surrey V3Z 3V7 Canada

RE: The tariff classification, country of origin, and eligibility of the United States-Mexico-Canada Agreement (USMCA) of drawer dividers from Canada

Dear Mr. Povey:

In your letter dated April 28, 2024, you requested a binding ruling on the tariff classification, country of origin, and eligibility of a drawer divider and bracket kit under the United States-Mexico-Canada Agreement (USMCA).

The item under consideration is a drawer divider kit consisting of a wood board of medium density fiberboard (MDF) and two plastic end brackets for securing the divider inside a drawer. The MDF board, which acts as the main divider, measures 14.5 inches in length by 5 inches in height by 0.25 thick. The board is covered in faux leather plastic sheeting for a decorative effect.


The divider and bracket kit constitute a set for tariff purposes, as provided for in Explanatory Note X to General Rule of Interpretation (GRI) 3(b). The MDF divider imparts the essential character as an indispensable component that also predominates by weight and value over the other components.

Therefore, the applicable subheading for the drawer divider and bracket kit will be 4420.90.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for wooden articles of furniture not falling within chapter 94. The rate of duty will be 3.2 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 at Country of Origin:

In your submission you also request a country of origin determination for the drawer divider kits. You describe the manufacturing of the divider kit as follows: MDF board is manufactured in Canada of North American wood pulp and cut to size. Still in Canada, it is then wrapped and glued with China-origin faux leather plastic sheeting that has been cut to size in Canada. The plastic end brackets are injection-molded in Canada using U.S. plastic (nylon) and a Canada-made mold. Finally, in Canada, the components are packaged together in a plastic bag and labeled for sale to the public.

Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that: Country of origin" means the country of manufacture, production or growth of any article of foreign origin entering the United States. Because the manufacturing of the dividers and brackets takes place in Canada, a United States-Mexico-Canada Agreement (USMCA) country, in order to determine their country of origin for marking purposes, we must apply the applicable rules for a product which has been processed in a USMCA country. For non-USMCA or NAFTA goods, 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 this part; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of the Customs Regulations will determine the country of origin:

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 required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 CFR 102.21. Applied in sequential order, the required hierarchy establishes that:

(a) 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 section 102.20 and satisfies any other applicable requirements of that section, and all other requirements of these rules are satisfied.

Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case because the divider kit is neither wholly obtained nor produced exclusively from domestic materials. Accordingly, we look to section 102.11(a)(3). The applicable tariff shift requirement in section 102.20 reads, a change to headings 4401 through 4421 from any other heading, including another heading within that group.

Based on the manufacturing operations outlined previously, the tariff shift rule noted above is met. The faux leather plastic sheeting undergoes a change to heading 4420 when it is assembled onto the divider board in Canada. We therefore find the country of origin of the drawer divider kit to be Canada.

Trade Program:

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)). 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;

(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));

Since the drawer divider kits contain a non-originating material, the faux-leather sheeting, they are 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 drawer divider kits are classified under subheadings 4420.90.8000, HTSUS. The applicable rule of origin for goods classified under subheading 4420.90.8000, HTSUS, is in GN 11(o), which provides in relevant part: Chapter 44 (1) A change to headings 4401 through 4421 from any other heading, including another heading within that group. The plastic sheeting from China is sent to Canada where it is cut and glued onto the boards of Canada origin and packaged with plastic brackets of Canada origin. The plastic sheeting undergoes the required tariff shift.

Based on the facts provided, the goods described above qualify for USMCA preferential tariff treatment, because they will meet the requirements of HTSUS General Note 11(b)(iii). 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 description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.

This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Charlene Miller at [email protected].


Steven A. Mack
National Commodity Specialist Division