CLA-2-39:OT:RR:NC:N5: 137
Val Holtrop
World Wise Consulting LLC
1500 NW 89th Court, Suite 221
Doral, FL 33172
RE: The eligibility of the United States-Mexico-Canada Agreement (USMCA) of LUPOY HR5007A from
Canada
Dear Ms. Holtrop:
In your letter dated February 16, 2026, you requested a binding ruling on the eligibility of LUPOY HR5007A
under the United States-Mexico-Canada Agreement (USMCA) on behalf of your client, LG Chem America,
Inc.
The product under consideration is referred to as LUPOY HR5007A. It is a copolymer containing
polycarbonate, acrylonitrile-butadiene-styrene (ABS), and styrene-acrylonitrile (SAN). Chapter 39, Note 4
states: “The expression “copolymers” covers all polymers in which no single monomer unit contributes 95
percent or more by weight to the total polymer content…polymer blends are to be classified in the heading
covering polymers of that comonomer unit which predominates by weight over every other single
comonomer unit.” In this case, the polycarbonate is the component that predominates by weight.
Polycarbonate and ABS of Korean origin and SAN, lubricant, stabilizers and colorant of Chinese origin are
shipped to Canada. In Canada the following steps are taken:
The components are weighed according to a recipe. They are evenly dispersed using an impeller. The
products are then thoroughly mixed under specific temperature and pressure conditions and are extruded into
strands. The strands are cooled in a water bath and then cut in a pelletizer to create pellets.
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 LUPOY HR5007a contains non-originating ingredients, it is not considered a good wholly obtained
or produced entirely in a USMCA country under GN 11(b)(i), nor are the products produced exclusively from
originating materials per GN 11(b)(ii). Thus, we must determine whether the product qualifies under GN
11(b)(iii). The LUPOY HR5007A is classified under subheading 3907.40.0000, HTSUS. The applicable rule
of origin for goods classified under subheading 3907.40.0000, HTSUS, is in GN 11(o)/ 39.1, HTSUS, which
provides “A change to headings 3901 to 3915 from any other heading within that group, providing that the
originating polymer content of headings 3901 to 3915 is not less than 50 percent by weight of the total
polymer content.”
The merchandise does not qualify for preferential tariff treatment under the USMCA because none of the
above requirements are met.
You suggest that the LUPOY HR5007A will qualify for USMCA by virtue of GN 11(n)(v)(D) which states:
(v) A good of any heading in chapters 39 through 40 that satisfies one or more of the provisions
enumerated in this subdivision shall be treated as an originating good, except as otherwise specified in
those rules. Notwithstanding the preceding sentence, a good is an originating good if it meets the
applicable change in tariff classification or satisfies the applicable value content requirement specified
insubdivision (o) of this note.
(D) A good of chapter 39 is an originating good if the deliberate and proportionally-controlled
mixing or blending (including dispersing) of materials, other than the addition of diluents, to
conform to predetermined specifications occurs in the territory of one or more of the USMCA
countries, resulting in the production of a good having essential physical or chemical
characteristics that are relevant to the purposes or uses of the good and are different from the
input materials.
We disagree. It is the opinion of this office that the blending of the aforementioned material does not result in
the production of a good having characteristics that are different from the input materials. Therefore, the
LUPOY HR5007A does not qualify for preferential treatment under USMCA.
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 Christina Allen at [email protected].
Sincerely,
(for)
James Forkan
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division