CLA-2-84:OT:RR:NC:N1:103
David Robeson
Mohawk Global
123 Air Cargo Road
North Syracuse, NY 13212
RE: The United States-Mexico-Canada Agreement (USMCA) eligibility of a cascading belt conveyor
Dear Mr. Robeson:
In your letter dated May 22, 2025, on behalf of your client, Gorbel, you requested a determination on the
eligibility of duty free treatment for a cascading conveyor under the USMCA.
The subject cascading belt conveyor, model number AE-DT24081-H-I, uses a moving belt system to
transport goods. It consists of an aluminum base that supports a cascading table assembly made up of six
individual conveyor belt sections. The sections extend up to 79 feet, forming a single continuous conveyor
with a belt system that can move either forward or reverse and up to 120 feet per minute.
The applicable subheading for the cascading belt conveyor, model number AE-DT24081-H-I, will be
8428.33.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other lifting,
handling, loading or unloading machinery (for example, elevators, escalators, conveyors, teleferics): Other
continuous-action elevators and conveyors, for goods or materials: Other, belt type.” The general rate of duty
will be free.
The cascading belt conveyor is assembled in Canada using Canadian and Polish components. The Polish
components include a conveyor body assembly with the tables and belting sections (integrated with internal
mechanical and electrical components) mounted on a structural base. Additional unassembled mechanical
components from the manufacturer are shipped together with the assembly. In Canada, workers add a control
panel, electrical box, emergency stop buttons, sensors, and a hitch, which is used to connect the unit to other
conveyor assemblies or handling equipment. Even though the Polish assembly is entered in Canada under
subheading 8428.33, you inquire whether it can be considered a part under subheading 8431.39 for the
purposes of determining USMCA eligibility.
Merchandise is classifiable under the HTSUS in accordance with the General Rules of Interpretation (GRIs).
GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the
headings and any relative section or chapter notes. GRI 2(a) extends the scope of the HTSUS headings to
include unfinished articles, provided the unfinished article has the essential character of the finished article.
GRI 2(a) further states that, “Any reference in a heading to an article shall be taken to include a reference to
that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the
essential character of the complete or finished article. It shall also include a reference to that article complete
or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or
disassembled.” Under GRI 2(a), the factor or factors which determine essential character will vary with the
merchandise. It may, for example, be determined by the nature of a component or components, their bulk,
quantity, weight or value, or the role of a component or components in relation to the use of the good. It is
the opinion of this office that the Polish cascading body subassembly in its imported condition possesses the
essential character of a complete belt conveyor.
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 cascading belt conveyor contains non-originating materials, it is not considered a good “wholly
obtained” or “produced entirely in a USMCA country” under GN 11(b)(i) and GN 11(b)(ii). We must next
determine whether the cascading belt conveyor qualifies under GN 11(b)(iii). Since the finished cascading
belt conveyor is classified under subheading 8428.33, HTSUS, the applicable rule of origin is in GN
11(o)/84.89, HTSUS, which provides for “a change to subheadings 8428.10 through 8430.69 from any other
subheading, including another subheading within that group.” Based on the facts presented, and as noted
above, the non-originating conveyor body assembly is also classified under subheading 8428.33, HTSUS.
Accordingly, the cascading belt conveyor will not qualify as a USMCA originating good.
Based on the totality of the circumstances, the country of origin of the cascading belt conveyor will be Poland
for the purposes of applying additional duties.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must
be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the
Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading
8428.33.0000, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 https://hts.usitc.gov/.
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 Paul Huang at [email protected].
Sincerely,
(for)
James Forkan
Acting Director
National Commodity Specialist Division