OT:RR:NC:N2:212
Paula Connelly
Sandler Travis & Rosenberg, P.A.
100 Trade Center, Suite G-700
Woburn, MA 01801
RE: The country of origin of LAN cables
Dear Ms. Connelly:
In your letter dated June 9, 2025, you requested a country of origin ruling on behalf of your client, Linkz
Cables Mexico.
The merchandise under consideration is identified by part number SK-4CT6-S221 and is described as a
CAT6 Unshielded Twisted Pair (UTP) LAN cable. The cable is constructed of multiple insulated pairs within
an outer jacketing. The cable is imported on reels and is not terminated with any connectors. The subject
cable is used to transmit data signals in various residential and commercial network installations.
In your request, you provide two versions of the manufacturing process for our review. In the first version,
Taiwanese copper wire is imported into Mexico on reels. This copper wire is then drawn to decrease its
diameter and increase its length. The drawn wire is then annealed before it is extruded to add a layer of
insulation, which you state originates from Japan. Two insulated wires are then wound together in order to
create what is referred to as an insulated pair. Multiple insulated pairs are then combined together and further
insulated via the extrusion process with insulation material from China in order to create the finished cable.
The finished cable is then tested and wound onto a reel in preparation for export to the United States.
The second version of the manufacturing process is virtually identical to that which is described above. The
only difference is U.S. origin copper wire is imported into Mexico. The remainder of the process stays the
same.
We note that classification is not specifically at issue with this request. However, a country of origin analysis
of goods produced in Mexico requires us to comment on the classification of the cable at the 6-digit level.
Based on the information provided, the correct subheading for the subject cables will be 8544.49,
Harmonized Tariff Schedule of the United States (HTSUS).
When determining the country of origin for purposes of applying current trade remedies under Section 301
and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling
Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will
occur is whether an article emerges from a process with a new name, character, or use different from that
possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778
(C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v.
United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
Regarding the origin for trade remedies and any additional duties, it is the opinion of this office that the
process completed in Mexico, including the drawing, annealing, insulating, winding, and bundling is
significantly complex to substantially transform the copper articles. Though at importation into Mexico the
copper wire has some electrical capabilities, the work described above significantly adds to the electrical
properties consistent with the use of the finished cable. As such, based upon the facts presented, the country
of origin for trade remedy and additional duty purposes of the CAT6 UTP LAN cable, part number
SK-4CT6-S221, will be Mexico in both manufacturing scenarios.
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(b), 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 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, apart from 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.
Since the subject merchandise is neither “wholly obtained or produced” nor “produced exclusively from
domestic materials”, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the
cable, and paragraph (a)(3) must be applied to determine the origin of the finished article. As the subject
cable, as noted above, is classified under 8544.49, HTSUS, the applicable tariff shift requirement in Part
102.20 states:
A change to subheading 8544.49 from any other good of subheading 8544.49, except when resulting
from simple assembly; or
A change to subheading 8544.11 through 8544.70 from any other subheading, including another
subheading within that group, except when resulting from simple assembly.
Based upon the information provided for both versions of the manufacturing process, all non-originating
components, namely the insulation material and conductor wire, are classified outside of heading 8544,
HTSUS. As such, we look to the second rule noted above and find that these components satisfy the tariff
shift rule as they are classified outside of the defined parameters and the processes performed in Mexico
extend beyond the definition of simple assembly. As such, the country of origin for marking purposes of the
finished CAT6 UTP LAN cable, part number SK-4CT6-S221, will be Mexico.
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 Luke LePage at [email protected].
Sincerely,
James Forkan
Acting Director
National Commodity Specialist Division