MAR-2:OT:RR:NC:N1:118

BJ Shannon
Alston and Bird LLP
950 F Street NW
Washington, DC 20004

RE: The country of origin and eligibility under the United States-Mexico-Canada Agreement (USMCA) of a Walk-Behind Lawn Mower.

Dear Ms. Shannon:

This is in response to your letter dated January 15, 2026, on behalf of Daye North America, Inc. (Daye), requesting a ruling on the country of origin and eligibility of the United States-Mexico-Canada Agreement (USMCA) of a walk-behind lawn mower. A comprehensive bill of materials and descriptions of the components of the lawn mower were included with your submission.

Daye plans to manufacture in Mexico a walk-behind lawn mower with components from China, Mexico and the United States. In Mexico, Daye will manufacture the mower deck, rear air deflector, and air deflector via stamping processes, using Mexican origin steel. After stamping, Daye will also powder coat the deck and the air deflector. Also in Mexico, Daye will manufacture the side discharge cover, wheels, tires, head cover, head cover base, dustproof wheel cover, front cover, rear cover, rear cover plate, mulching kit, and side discharge protection cover using injection molding with Chinese origin plastic pellets. You have stated that the manufacture of these components will require four different types of hydraulic presses, a powder coating line, and two different types of plastic injection molding machinery.

Daye will purchase (it does not manufacture) a Mexican origin gearbox and a U.S. origin gasoline-powered engine that has a maximum power output of 3.69 kW. The imported Chinese components will include the blades (blade disc base assemblies, left and right blade assemblies, and cutter head connector assembly), engine mount assembly, front and rear axles, passive gear, brake disc, tensioner assembly, handle and handle panel assembly, grass collection bag, timing belt, gearbox v-belt, and driving pulley.

Finally in Mexico, Daye will assemble the finished mower, with the Mexican, Chinese, and U.S. components. You have stated that this final assembly, inspection, and testing of all the components will also require significant time and labor. USMCA:

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 Harmonized Tariff Schedule of the United States (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));

The subject walk-behind lawn mower contains non-originating materials and is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i). Moreover, under GN 11(b)(ii), the walk-behind lawn mower is not a good produced entirely in Mexico exclusively from originating materials. Therefore, we must next determine whether the non-originating materials undergo the tariff shift and satisfy other applicable requirements provided for in GN 11(b)(iii) and GN 11(o).

The walk-behind lawnmower is classified within subheading 8433.11.0050, HTSUS, which provides for “Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers…, parts thereof: Mowers for lawns, parks or sports grounds: Powered, with the cutting device rotating in a horizontal plane: Other: Under 3.7 kW.” The applicable tariff shift rule for merchandise classifiable under subheading 8433.11, HTSUS, is in GN 11(o), HTSUS, which provides, in relevant part:

A change to subheadings 8433.11 through 8433.60 from any other subheading, including another subheading within that group.

Since all the foreign-origin parts are classified outside of subheadings 8433.11 through 8433.60, HTSUS, the requisite tariff shift rule is met, and the finished walk-behind lawn mower is considered an originating good under the USMCA and eligible for preferential treatment.

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. Friedlaender & 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 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 Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

The walk-behind lawn mower is neither “wholly obtained or produced” nor “produced exclusively from domestic materials.” Therefore, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the walk-behind lawn mower, and paragraph (a)(3) must be applied next to determine the origin of the finished article. The walk-behind lawn mower is classified under subheading 8433.11.0050, HTSUS. The tariff shift requirement in Part 102.20 for the walk behind lawn mower at issue states:

A change to subheadings 8433.11 through 8433.60 from any other subheading, including another subheading within that group.

As we have established earlier, the foreign components are classified outside of subheadings 8433.11 through 8433.60, HTSUS. Therefore, the tariff shift is met and the country of origin of the walk-behind lawn mower will be Mexico for marking purposes.

Trade Remedies:

When determining the country of origin for purposes of applying current trade remedies under Section 301 and other 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).

In regard to the walk-behind lawn mower, we find that a substantial transformation occurs in Mexico. In this case, Daye will transform raw plastics, steel, a gearbox, blades, an engine, and other components into a finished lawn mower. Each material and component of the mower will lose its identity and become a new and different article of commerce (i.e., the lawn mower). The number of components involved in this assembly, as well as the machinery, time, and number of employees required, all confirm that a substantial transformation will occur as a result of manufacturing and assembly in Mexico. It is therefore the opinion of this office that the country of origin of the walk-behind lawn mower is Mexico for Section 301 and other duties.

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,

(for)
Denise Faingar
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division