CLA-2-82:OT:RR:NC:N1: 118
Victoria Maki
Megpro Tools Inc.
20133 102nd Avenue, Unit 3A
Langley, BC S4R 4M6
Canada
RE: The eligibility of the United States-Mexico-Canada Agreement (USMCA) of a Multi-bit Ratcheting
Screwdriver from Canada
Dear Ms. Maki:
In your letter dated April 16, 2025, you requested a binding ruling on the eligibility of a Multi-Bit Ratcheting
Screwdriver under the United States-Mexico-Canada Agreement (USMCA).
The merchandise is identified as a Megapro Multi-bit Ratcheting Screwdriver, item# 211R2C36RD. The
screwdriver features a “pull-out” bit storage area within the ratcheting handle that holds six double ended
screwdriver bits, i.e., Phillips 0-3, Phillips 1-2, Flat (slotted) 4-6, Torx 10-15, Torx 20-25 and Square
(Robertson) 1-2. You have stated that the tool is assembled in Canada with originating materials from
Canada and non-originating materials from Taiwan and China. The metal ratchet assembly is manufactured
in China and the screwdriver bits are manufactured in Taiwan. The balance of the components that comprise
the finished screwdriver originate from Canada, including the injected molded plastic parts that make up the
handle of the screwdriver. The Chinese ratchet assembly and the Taiwanese bits are imported into Canada,
where they are assembled with the plastic Canadian parts that comprise the handle. The fully assembled
screwdriver is then exported to the United States, where is it packaged for retail sale.
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));
Since the Megapro Multi-bit Ratcheting Screwdriver contains non-originating components, 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).
The screwdriver is classified within subheading 8205.40.0000, Harmonized Tariff Schedule of the United
States (HTSUS), which provides for handtools (including glass cutters) not elsewhere specified or included;
blow torches and similar self-contained torches; vises, clamps and the like, other than accessories for and
parts of machine tools or water-jet cutting machines; anvils; portable forges; hand- or pedal-operated
grinding wheels with frameworks; base metal parts thereof: screwdrivers, and parts thereof.
The applicable rule of origin for goods classified under subheading 8205.40.0000, HTSUS, is in GN 11(o)
HTSUS, which provides, in relevant part:
5. A change to heading 8203 through 8206 from any other chapter.
Since the Chinese and Taiwanese components (i.e. the bits and ratchet assembly) are classified within chapter
82, the tariff shift rule set forth in GN 11(o), HTSUS is not met. As a result, the Megapro Multi-bit
Ratcheting Screwdriver, item# 211R2C36RD, is not considered an originating good under the USMCA and
thus not eligible for preferential treatment upon importation into the United States.
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 Anthony Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division