Laura Moya
Nakachi Eckhardt & Jacobson, P.C.
50 California Street
San Francisco, CA 94111

RE: The country of origin and eligibility under United States Mexico Canada Agreement (USMCA) on bracelets

Dear Ms. Moya:

In your letter dated August 25, 2025, you requested a binding ruling on bracelets on behalf of your client, Sunrise Jewelry Manufacturing Cooperation.

Style BB131-S is a 14K white gold stretch bracelet set with diamonds.

The second article is style BB131-S without the diamonds.

The manufacturing steps for both bracelets are as follows:

United States

USMCA certified gold grain is obtained USMCA certified metal is alloyed Stainless steel spring is manufactured and obtained

Mexico

Casting of the bracelets Removing individual links from the casting tree Individual links will be assembled onto a stainless-steel flexible coil spring wire Polishing Diamonds of unknown origin will be provided and set into the bracelet (first article only). CLASSIFICATION

The applicable subheading for Style BB131-S, both with and without the diamonds, will be 7113.19.5091, Harmonized Tariff Schedule of the United States, which provides for “Articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal: Of other precious metal, whether or not plated or clad with precious metal: Other: Other.”

COUNTRY OF ORIGIN

The marking statute, section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304), provides that unless excepted, every article of foreign origin (or its container) 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 an 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 markings on the imported goods the country of which the good is the product. “The evident purpose is to mark the goods so 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.” United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 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 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 § 102.20 and satisfied any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

Since the bracelets are produced in Mexico from United States origin gold and set with diamonds of unknown origin, the country of origin cannot be determined by 19 C.F.R. § 102.11(a)(1) and (a)(2). CBP then turns to 19 C.F.R. § 102.11(a)(3) to determine whether the bracelets produced in Mexico undergo the applicable change in tariff classification. “Foreign material” is defined in 19 C.F.R. § 102.1(e) as “a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.”

The bracelets are classified under heading 7113, HTSUS, and 19 C.F.R. § 102.20 provides that for articles classified in headings 7113 through 7118 the applicable tariff shift requirement is “A change to subheading 7113.11 through 7115.90 from any other subheading, including another subheading within that group.:

Because the gold grain of US origin is classified under heading 7108, HTSUS; the stainless steel spring of US origin is classified under chapter 73; and the diamonds of unknown origin are classified under heading 7108, HTSUS, they undergo the requisite tariff shift set forth in 19 C.F.R. § 102.20. As the foreign materials undergo the applicable tariff shift pursuant to 19 C.F.R. § 102.20, in accordance with 19 C.F.R. § 102.11(a)(3), the country of origin for the bracelet is Mexico.

USMCA

The United States-Mexico-Canada Agreement (“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)); . . . .

In reviewing the bracelet without diamonds, GN 11(b)(i) does not apply as it is not wholly obtained or produced entirely in Mexico. However, GN11(b)ii is applicable because it is a good produced in Mexico from United States origin materials. Therefore, pursuant to GN 11(b)(ii), the bracelet without diamonds is eligible for preferential tariff treatment under the USMCA.

Regarding the bracelet with diamonds, neither GN 11(b)(i) or (b)(ii) apply, as neither are “wholly obtained or produced entirely” in Mexico, nor are they “produced entirely in Mexico, exclusively from originating materials.” CBP turns to GN 11(b)(iii) to determine whether the bracelets with diamonds are eligible for preferential tariff treatment under the USMCA. GN 11(b)(iii) provides that a good is eligible for preferential tariff treatment under the USMCA if it is a “good produced in [Mexico] using non-originating materials, if the good satisfies all applicable requirements set forth in this note (including in the provisions of subdivision (o)).” GN 11(o) provides for the applicable tariff shift requirements.

For products of Chapter 71, GN 11(o) states that the applicable tariff shift is “A change to headings 7113 through 7118 from any heading outside that group.”

The non-originating materials for the bracelets are the diamonds of unknown origin. The diamonds are classified under heading 7108, HTSUS. By application of GN 11(o), the non-originating materials undergo the applicable tariff shift. Therefore, pursuant to GN 11(b)(iii), bracelets with diamonds are eligible for preferential tariff treatment under the USMCA.

TRADE REMEDIES

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 of Mexico are not subject to reciprocal tariffs. At the time of entry, you must report Chapter 99 heading applicable to your product classification, i.e. 9903.01.27, in addition to subheading 7113.19.5090, HTSUS, listed above.

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 Vikki Lazaro at [email protected].

Sincerely,

(for)
Evan Conceicao
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division