CLA-2-31:OT:RR:NC:N3:136
Erica Fritz
GHY International
572 South 5th Street
Pembina, ND 58271
RE: The country of origin and eligibility of PreCede Cereal under the United States-Mexico-Canada
Agreement (USMCA) from Canada
Dear Ms. Fritz:
In your letter dated June 4, 2026, on behalf of your client, ATP Nutrition, Ltd., you requested a binding
ruling on the country of origin and eligibility of PreCede Cereal under the United States-Mexico-Canada
Agreement (USMCA).
In your submission, you state that PreCede Cereal is a liquid fertilizer seed treatment formulated to enhance
early crop development. It contains nitrogen, phosphate, micronutrients (zinc, manganese, boron), and
biostimulants including a seaweed extract.
The production process is described as follows:
Production occurs entirely in Canada. The process includes charging water, adding acids, dissolving
micronutrient salts, incorporating a seaweed extract (Kelpak), and blending additional inputs
including borate, nickel chloride, urea, and a polymer stabilizer. The process involves controlled
sequencing, high-shear mixing, dissolution verification, and quality control testing to produce a
homogeneous, stable formulation. The raw materials originate from multiple countries, including
Canada and non-USMCA countries.
You submit that the processing in Canada constitutes a substantial transformation of the raw
materials. You state that the production process in Canada constitutes more than simple blending.
The individual inputs, which are industrial or intermediate materials, are transformed through
controlled formulation into a distinct seed treatment product with a new name, character, and use. The
functionality of the finished product depends on the precise interaction of its components, which do
not independently provide the intended agronomic performance. Once processed, the materials lose
their individual identity and cannot be practically separated, resulting in a new and commercially
distinct product. The finished product is a specialized, commercially recognized seed treatment
fertilizer not achievable through simple combination at the point of use.
Classification
In your submission, you suggest classification of the finished product in subheading 3105.20.0000.
Harmonized Tariff Schedule of the United States (HTSUS); however, we have found that to be incorrect
because based on the provided information, PreCede Cereal contains two of the three fertilizing elements,
nitrogen and phosphorus, it does not contain potassium.
The applicable subheading for PreCede Cereal imported in packages of a gross weight exceeding 10
kilograms will be 3105.59.0000, HTSUS, which provides for Mineral or chemical fertilizers containing two
or three of the fertilizing elements nitrogen, phosphorus and potassium; other fertilizers; goods of this chapter
in tablets or similar forms or in packages of a gross weight not exceeding 10 kg: Other mineral or chemical
fertilizers containing the two fertilizing elements nitrogen and phosphorus: Other. The general rate of duty
will be free.
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.
Country of Origin and Marking
The "country of origin" is defined in 19 CFR 134.1(b) 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 this part.” However, for a good of a USMCA country, the marking rules set
forth in part 102 of this chapter will determine the country of origin.
The marking statute, Section 304, 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 the ultimate purchaser in the United States the English name of the
country of origin of the article. Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19
C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304.
To provide a more seamless transition to the USMCA for Canadian and Mexican traders, at this time, CBP
continues to utilize the marking rules in 19 C.F.R. Part 102, with the exception of 19 C.F.R. § 102.19, for
purposes of country of origin marking with respect to goods of those countries. Title 19, C.F.R. § 102.11(a)
provides that the country of origin of a good is the country in which: (a)(1) The good is wholly obtained or
produced; (a)(2) The good is produced exclusively from domestic materials; or (a)(3) Each foreign material
incorporated in that good undergoes an applicable change in tariff classification set out in §102.20 and
satisfies any other applicable requirements of that section, and all other applicable requirements of these rules
are satisfied. Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case because
the imported products are neither wholly obtained or produced or produced exclusively from “domestic”
materials. Because the analysis of sections 102.11(a)(1) and 102.11(a)(2) does not yield a country of origin
determination, we look to section 102.11(a)(3). Pursuant to 19 C.F.R. §102.11(a)(3), the country of origin of
a good is the country in which each foreign material incorporated in that good undergoes an applicable
change in tariff classification as set forth in 19 C.F.R. §102.20, and satisfies any other applicable
requirements of that section.
You have asked if one of the non-originating inputs, Kelpak, is considered a fertilizer of subheading 3105.20,
HTSUS. Kelpak is a seaweed-based biostimulant and plant supplement; however, it does not contain the
required level of essential elements to be classified as a fertilizer of Chapter 31, HTSUS.
The subject PreCede Cereal will be imported into the U.S. from Canada and is classified in subheading
3105.90, HTSUS. The change in tariff classification must be made in accordance with section 102.20(f),
Section VI: Chapter 31, which requires “A change to subheadings 3101.00 through 3105.90 from any other
good within these subheadings or any other subheading, including another subheading within that group.”
The subject product is produced in Canada with raw materials, from Canada, China, South Africa, Turkey,
Tiawan, and Austria. Upon importation into the U.S., the subject product is classified in subheading 3105.59,
HTSUS. As such, since all the raw materials used in making these products in Canada are classified in
subheadings other than 3105.59, the applicable tariff shift rule for 19 CFR 102.20 is satisfied, and therefore
the country of origin for duty and marking purposes is Canada.
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));
Based on the facts provided, the subject PreCede Cereal qualifies for USMCA preferential treatment, because
it will meet the requirements of HTSUS General Note 11(b)(iii), Chapter 31, 1. (A) “A change to
subheadings 3101.00 through 3105.90 from any other good within these subheadings or any other
subheading, including another subheading within that group.” Since all the raw materials used in making the
products in Canada are classified in subheadings other than 3105.59, HTSUS, the applicable tariff shift rule
in GN 11 of HTSUS has been met, and therefore the product is originating under the USMCA, and are
entitled to preferential treatment under USMCA upon compliance with all applicable laws, regulations, and
agreements.
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. Information on the TSCA can be obtained by
contacting the EPA at 1200 Pennsylvania Avenue, N.W., Mail Code 70480, Washington, D.C., by telephone
at (202) 554-1404, or by visiting their website at www.epa.gov.
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 Nuccio Fera at [email protected].
Sincerely,
(for)
James P. Forkan
Director
National Commodity Specialist Division