OT:RR:NC:N2:201
Dustin Adams
We Are One Composites Inc
1255 12th St
Kamloops V2B3C8
Canada
RE: The eligibility of the United States-Mexico-Canada Agreement (USMCA) of carbon fiber bicycle rims.
Dear Mr. Adams:
In your letter dated March 31, 2025, you requested a binding ruling on the eligibility of carbon fiber bicycle
rims under the United States-Mexico-Canada Agreement (USMCA). The subject carbon fiber bicycle rims
are manufactured in Canada from United States-sourced carbon fiber sheets and other materials.
The items under consideration have been identified as carbon fiber bicycle rims manufactured in Canada.
You did not provide a specific model number but stated that you manufacture bicycle rims that you sell to
wholesale businesses, such as bike shops and online retailers. You also state that you sell rims directly to
customers for mountain bike use.
You provided video documentation showing the manufacturing process. From our understanding of the
process, there are approximately nine (9) manufacturing steps, all of which are performed in Canada. These
steps consist of:
1. Engineering, Research and Development, CAD drawings and Mock-ups
2. Machining, which you do onsite
3. CNC Drag Knife Cutting of United States-sourced Carbon Fiber
4. Rim “kits” put together with strips of trimmed Carbon Fiber sheeting
5. “Kits” are laminated on molds into “rim” shape
6. Vacuum debunking (air removal), and placing rims into oven to cure the epoxy resin
7. Removal from molds
8. Holes for spokes drilled into the finished rim
9. Cleaning and Inspection and packaging
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;
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));
The subject bicycle rims may contain originating materials, but you did not provide enough information to
determine whether every component used would meet the USMCA rules; thus, it cannot be considered a
good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i). Therefore, we must
next determine whether the non-originating materials undergo the tariff shift and other requirements provided
for in GN 11(b)(iii) and GN 11(o).
The carbon fiber bicycle rims are classified under subheading 8714.92.10, Harmonized Tariff Schedule of the
United States (HTSUS). The applicable rule of origin for merchandise classified under subheading
8714.92.10, HTSUS, is in GN 11(o)/87.14, which provides, in relevant part:
60. A change to headings 8714 through 8715 from any other heading, including another heading
within that group.
Under GN 11(o) 60, the raw materials (carbon fiber sheets, nylon bladders) undergo a permissible tariff shift,
therefore criterion (A) is satisfied. Based on the facts provided, the carbon fiber bicycle rims described above
qualify for USMCA preferential tariff treatment.
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every
article of foreign origin 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 marking on the imported goods the country of which the goods is the product.
The evident purpose is to mark the goods so that 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.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Section 134.1, CBP Regulations (19 CFR 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
sections 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 and apparel goods which
are subject to the provisions of 19 CFR 102.21. See 19 CFR 102.11.
Applied in sequential order, 19 CFR 102.11(a) provides 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 set
out in Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable
requirements of these rules are satisfied.
As you were unable to substantiate a claim that the subject merchandise is wholly obtained or produced in a
USMCA country, Rule (1) of § 102.11(a)(1) is inapplicable. As you can not substantiate that the
merchandise is produced exclusively from domestic materials, Rule (2) of § 102.11(a)(2) is inapplicable.
Accordingly, Rule (3) applies.
Section 102.20 sets forth specific rules by tariff classification. The pertinent tariff shift rule for subheading
8714.90, states:
A change to headings 8714 through 8715 from any other heading, including another heading within
that group.
In view of these facts, since you claim that the carbon fiber sheets, nylon bladders, and packing material are
procured in the United States and the manufacturing processes in Canada produce a substantial
transformation of the good, classified in Chapter 39 and Chapter 68, the “change to 8716.90 from any other
heading” will occur as a result of the production in Canada, the subject bicycle rims will undergo the required
change in tariff classification. Therefore, the tariff shift requirement of section 102.11(a)(3) is met. The
country of origin of the bicycle rims for origin and marking purposes is Canada.
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 Matthew Sullivan at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division