OT:RR:NC:N2:212
Angeliky Colokuris
Escoto Customs Brokers Inc.
9540 Joe Rodriguez, STE 100
El Paso, TX 79927
RE: The classification, country of origin, marking, and eligibility under the United States-Mexico-Canada
Agreement (USMCA) of a surge protection device
Dear Ms. Colokuris:
In your letter dated June 23, 2025, you requested a ruling on the classification, country of origin, and
eligibility under the United States-Mexico-Canada Agreement (USMCA), on behalf of your client Mersen
USA EP Corp.
The merchandise under consideration is identified as the Thermally Protected Metal Oxide Varistor
(TPMOV), part number 150TPMOVSL, and is described as a surge protection device used in voltage
suppression. The subject device consists of a variable resistor, or varistor, element with electrical terminals
and a thermal switch encased within a molded plastic enclosure. The subject device has a voltage rating of
150 VAC.
In use, the TPMOV is placed within an electrical system, such as industrial automation, home electronics,
energy conversion, etc., in order to protect the systems from an unexpected power surge. A surge in power
will overheat the varistor causing the thermal switch to stop the flow of electricity.
You described the assembly and manufacturing process for the subject device as occurring in Mexico. In
Mexico, the U.S.-originating thermal switch is installed within the molded plastic base cover, which
originates in Mexico. A Chinese-origin varistor is then placed within the base and electrical contacts of U.S.
and Mexican origin are attached. The remainder of the molded case, originating in the U.S. and Mexico, is
then assembled before the finished device is labelled and packaged for shipment to the U.S. You state that the
product and its packaging are both marked “Assy in Mexico,” because the assembly process occurs in
Mexico.
Classification:
In your request, you suggest that the correct classification for the subject surge protection device is
subheading 8536.30, Harmonized Tariff Schedule of the United States (HTSUS). We agree.
The applicable subheading for the TPMOV, part number 150TPMOVSL, will be 8536.30.8000, HTSUS,
which provides for “Electrical apparatus for switching or protecting electrical circuits…for a voltage not
exceeding 1,000V: Other apparatus for protecting electrical circuits: Other.” The general rate of duty will be
free.
Country of Origin:
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 of the subject protection device for trade remedy purposes, it is the opinion of this office
that the Chinese-origin varistor imparts the character of the finished article as it provides the essential
electrical function. Further, the processes performed in Mexico are simple in nature and do not substantially
transform the varistor into a new and different article of commerce. The country of origin for trade remedy
purposes of the TPMOV, part number 150TPMOVSL, will be China.
Marking:
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 8536.30, HTSUS, the applicable tariff shift requirement in Part
102.20 states:
A change to any other good of subheading 8536.10 through 8536.90 from any other subheading,
including another subheading within that group.
Based upon the information provided, all foreign components, including the Chinese varistor, which is
classified under heading 8533, HTSUS, fall outside of the parameters set forth above. As such, the tariff shift
rule is satisfied. The country of origin for marking purposes for the TPMOV, part number 150TPMOVSL,
will be Mexico.
In your ruling request, you also stated that the product and its packaging are marked “Assy in Mexico,”
because the assembly process occurs in Mexico. In this regard, Section 134.43 (e), CBP Regulations (19 CFR
134.43(e)), provides:
Where an article is produced as a result of an assembly operation and the country of origin of such article is
determined under this chapter to be the country in which the article was finally assembled, such article may
be marked, as appropriate, in a manner such as the following: (emphasis added)
(1) Assembled in (country of final assembly);
(2) Assembled in (country of final assembly) from components of (name of country or countries of
origin of all components); or
(3) Made in, or product of, (country of final assembly).
Consistent with 19 CFR 134.43(1), we find that the marking “Assembled in Mexico” is appropriate as long as
it is legibly, conspicuously, and permanently applied to the article or its container. However, the use of the
abbreviation “assy” to indicate the word “assembly” does not meet the requirements of 19 CFR 134.43.
Instead, the appropriate markings are “Made in Mexico” or “Assembled in Mexico.”
USMCA Eligibility:
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, 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, in relevant part:
For the purposes of this note, a good imported into the customs territory of the United States from the
territory of a USMCA country…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));
As the subject protection device contains non-originating goods, it is not considered a good wholly obtained
or produced entirely in a USMCA country under GN 11(b)(i). Additionally, under GN 11(b)(ii), the device is
not a good produced entirely in Mexico exclusively from originating materials. Therefore, we must 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 applicable tariff shift rule for merchandise classifiable under subheading
8536.30, HTSUS, states, in relevant part:
82. A change to any other good of subheading 8536.30 from any heading, except from tariff items
8538.90.10, 8538.90.30 or 8538.90.60
Based upon the information provided with this request, the only non-originating component is the varistor,
which as noted above is classified under heading 8533, HTSUS. As such, the tariff shift rule noted above is
satisfied. The TPMOV, part number 150TPMOVSL, is eligible for preferential treatment under the USMCA
upon importation into the U.S.
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