CLA-2-38:OT:RR:NC:N3:135
Iris Long
Russell A Farrow Limited
A-475 Admiral Blvd.
Mississauga L5T 2N1
Canada
RE: The tariff classification, country of origin, and United States-Mexico-Canada Trade Agreement
(USMCA) eligibility of AKD emulsion from Canada
Dear Ms. Long:
In your letter dated March 20, 2026, on behalf of your client, Walker Emulsion Ltd., you requested a tariff
classification, country of origin determination, and eligibility of the AKD emulsion under the USMCA.
Updated documents were submitted via email dated March 25, 2026.
AKD (Alkyl Ketene Dimer) emulsion is a reactive, internal, or surface sizing agent used in neutral or alkaline
papermaking to provide water resistance by bonding with cellulose fibers. Typically added at 0.1 percent –
0.4 percent of dry pulp weight, it improves paper strength, whiteness, and printing suitability, and is
commonly used for writing, inkjet, and packaging papers. AKD molecules react with hydroxyl groups on
cellulose fibers under alkaline conditions (pH 8.0–8.5), creating a hydrophobic layer.
The AKD emulsion consists of water, Sta-lok 140 (cationic starch as a stabilizer), AKD1865 Wax (as a
sizing agent), Mergal CM-1.5 (co-stabilizer), hydrochloric acid (pH adjustment), Sumalchior 50, Magnafloc
Lt-7989 (coagulant/flocculant), and Norlig 42 (sodium lignosulfonate). Sta-lok 140, Mergal CM-1.5,
hydrochloric acid, Sumalchior 50, Magnafloc Lt-7989, and Norlig 42 are made in the United States.
AKD1865 Wax is produced in China, and the water is sourced from Canada.
Classification:
The applicable subheading for the AKD emulsion will be 3809.92.5000, Harmonized Tariff Schedule of the
United States (HTSUS),which provides for “Finishing agents, dye carriers to accelerate the dyeing or fixing
of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the
textile, paper, leather or like industries, not elsewhere specified or included: Of a kind used in the paper or
like industries: Other.” The general rate of duty will be 6 percent ad valorem.
The duties cited above are current as of this ruling’s issuance. Duty rates are provided for your convenience
and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided
at https://hts.usitc.gov/.
This ruling does not address the applicability of any additional duties, taxes, fees, exactions and/or other
charges, which may apply to the goods discussed herein. This includes, but is not limited to, tariffs and other
duties as provided for in Subchapter III to Chapter 99, HTSUS. Thus, for example, in addition to the
classification stated above, the merchandise covered by this ruling may also need to be reported with either
the Chapter 99 provision under which an additional tariff applies or one of the Chapter 99 provisions
covering exceptions to such tariffs.
For further information to assist with the importation process, please refer to the frequently updated Cargo
Systems Messaging Service (CSMS) messages at
https://www.cbp.gov/trade/automated/cargo-systems-messaging-service and the Trade Remedies page at
https://www.cbp.gov/trade/programs-administration/trade-remedies.
This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which
are administered by the U.S. Environmental Protection Agency (EPA). Information on the TSCA can be
obtained by contacting the EPA at Document Control Office (7407M), Office of Pollution Prevention and
Toxics (OPPT), Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W., Washington, D.C.,
20460, by calling the Toxic Substances Control Act Hotline at 800-471-7127, by e-mailing to
[email protected], or by visiting their website at www.epa.gov.
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 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 AKD emulsion contain a non-originating ingredient, it is not considered a good wholly obtained or
produced entirely in a USMCA country under GN 11(b)(i), nor is the product produced exclusively from
originating materials per GN 11(b)(ii). Thus, we must determine whether the product qualifies under GN
11(b)(iii). As previously noted, the AKD emulsion is classified under subheading 3809.92.5000, HTSUS.
The applicable rule of origin for goods classified under subheading 3809.92.5000, HTSUS, is in GN
11(o)/Chapter 38 (3)(A) , HTSUS, which provides “A change to subheadings 3809.10 through 3821.00 from
any other subheading, including another subheading within that group.”
Based on the facts provided, the AKD emulsion described above qualifies for USMCA preferential tariff
treatment because it meets the requirements of HTSUS General Note 11(b)(iii). The good will therefore be
entitled to duty-free treatment under the USMCA upon compliance with all applicable laws, regulations, and
agreements.
Country of Origin:
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 AKD emulsion 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
AKD emulsion, and paragraph (a)(3) must be applied next to determine the origin of the finished article. The
AKD emulsion is classified under subheading 3809.92.5000,HTSUS. The tariff shift requirement in Part
102.20 for the AKD emulsion at issue states:
A change to subheading 3809.91 through 3809.93 from any other subheading, including another
subheading within that group.
The foreign materials in the AKD emulsion all meet the tariff shift requirement. As a result, Part 102.11(a)(3)
applies, and the country of origin of the AKD emulsion will be Canada for marking purposes.
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 Fei Chen at [email protected].
Sincerely,
(for)
James Forkan
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division