• Type : Trade • HTSUS :

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