CLA-2-40:OT:RR:NC:N2:201
Mr. Steve Renaud
Frantik Motorsports Inc
18 Becker Rd
Hornepayne, ON P0M1Z0
Canada
RE: The tariff classification, country-of-origin, and marking of various “Skat Trak” paddle tires
Dear Mr. Renaud:
In your letter dated September 18, 2026, you requested a tariff classification, country-of-origin, and marking
determination ruling.
The items under consideration have been identified as various bias ply paddle tires used for sand racing, and
sold under the name “Skat Trak”. You indicate that these tires are sourced from China, Thailand, Taiwan,
and the United States, and shipped to Canada. The tires from China, Thailand, and Taiwan are new, treaded
tires, while the tires sourced from the United States are used racing slicks. After importation into the United
States from Canada, all of these tires will be used on All-Terrain Vehicles (ATVs), Utility Terrain Vehicles
(UTVs), motor vehicles, and motorcycles. The tires are designed and marketed for “off-road” use and are not
designed to be used on public roads and ways.
After shipment from their source countries to Canada, the original tread tires and outer rubber on the new
tires are mechanically ground and buffed away. The surface of the used racing slicks is also mechanically
ground and buffed to remove any residual racing compound, which is used for racing on asphalt. The casing
on both, the new and used tires, is ground down to the tire’s cords. The grinding operation creates numerous
small surface lines and irregularities that provide mechanical texture and improve adhesion. After grinding,
the following steps are taken:
1. The prepared casing is measured and marked to establish the precise location and alignment of each
paddle.
2. Adhesive is applied to the prepared bonding area to provide the initial bond between the casing and the
new paddle rubber.
3. The rubber, which is sourced in Canada, is measured and cut in-house for each individual paddle.
4. The prepared rubber is positioned on the casing according to the alignment marks.
5.
5. The paddles are applied individually, one at a time.
6. The casing and paddle rubber are then placed into a specialized forming die and vulcanizing press.
7. Heat and pressure are applied to form the rubber into the paddle profile and permanently vulcanize it
onto the prepared casing.
8. Specialized dies determine the paddle profile while the press applies heat and pressure.
9. Forming pressure is approximately 10–50 tons depending on paddle size and design.
10. Operating temperature is approximately 300–325°F. Each paddle requires approximately 11–30
minutes of vulcanizing/cure time.
11. After all paddles have been formed and vulcanized, the completed tire is inspected to verify proper
bonding, paddle placement, and straightness.
The process is repeated for each paddle until the required configuration is completed. You state that finished
tires may contain 8–22 paddles. Finished tire sizes range from approximately 18 inches to 36 inches. Your
company currently produces 17 individual paddle styles for different applications.
The end result of this process in Canada is the formation and manufacturing of paddles which are
permanently affixed and vulcanized onto the surface of the imported tires.
The applicable subheading for new Skat Trak motorcycle tires will be 4011.40.0000, Harmonized Tariff
Schedule of the United States (HTSUS), which provides for “New pneumatic tires, of rubber: Of a kind used
on motorcycles.” The general rate of duty will be Free.
The applicable subheading for the new Skat Trak ATV or UTV tires will be 4011.90.8010, HTSUS, which
provides for “New pneumatic tires, of rubber: Other: Other: Of a kind used on golf carts, all-terrain
vehicles…applications.” The general rate of duty will be 3.4 percent ad valorem.
The applicable subheading for the used retreaded tires will be 4012.19.8000, HTSUS, which provides for
“Retreaded or used pneumatic tires of rubber; solid or cushion tires, tire treads and tire flaps, of rubber:
Retreaded tires: Other: Other: Other.” The general rate of duty will be 3.4 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.
When determining the country of origin, the substantial transformation analysis is applicable. See, e.g.,
Headquarters Ruling Letter (“HQ”) 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).
With regard to the used tires sourced from the United States, these used racing slicks are imported into
Canada and processed so that the used tread and sidewall markings are removed and new treads are applied.
HQ 735589 (May 5, 1995) discussed the country of origin (COO) marking requirements for imported
retreaded truck tires. In that ruling it was determined that U.S., Canadian, and Japanese used tires which are
retreaded in Korea, were substantially transformed as a result of the retreading operation, and that the country
of origin of the retreaded tires would be Korea. In this scenario, we find a substantial transformation of the
used tires would take place, and the applicable COO will be Canada.
With regard to the tires sourced from China, Thailand, and Taiwan, these tires are new at the time of
importation into Canada. They were never placed on a motor vehicle; therefore, the treads are never “worn”.
In fact, the unused, original, factory-formed treads are ground/buffed off in order to place your paddles on the
tire.
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which
represent the official interpretation of the tariff at the international level, facilitate classification under the
HTSUS by offering guidance in understanding the scope of the headings and the GRIs. The ENs to 40.12
state:
In the context of subheadings 4012.11, 4012.12, 4012.13 and 4012.19, the expression “retreaded tyres”
covers tyres from which the worn tread has been removed from the tyre carcass and to which a new tread
has been created by either of two methods:
(i) a tread is moulded from unvulcanized rubber onto the tyre carcass or
(ii) a vulcanized tread is attached to the tyre carcass by a vulcanizable rubber strip
The instant merchandise are not tires with worn treads which are removed and replaced; these are unused,
new tires. Removing and replacing the tread on unused tires is not considered retreading for CBP purposes.
The described process which occurs in Canada enhances the functionality of the tires, allowing them better
traction on sand, but does not change the tires’ fundamental name, character or use, and does not constitute
substantial transformation. The country of origin of the tires will be China, Thailand, or Taiwan as
appropriate.
In your ruling request, you suggest that the country of origin of the tires sourced from China, Thailand, and
Taiwan should be Canada, claiming that the manufacturing operation is labor-intensive and involves
substantial hands-on production work throughout casing preparation, measuring, cutting, adhesive
application, paddle placement, forming, vulcanizing, and inspection. However, the operations that take place
in Canada do not constitute a substantial transformation, and the new tires remain new tires.
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 U.S. 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 U.S. the English name of the country
of origin of the article.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country-of-origin marking is
considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it
without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)),
provides that as a general rule marking requirements are best met by marking worked into the article at the
time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk,
molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides
that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate
purchaser unless deliberately removed is acceptable.
The proposed marking of the imported tires, as “Made in Canada”, while conspicuously, legibly and
permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134
would not be an acceptable country of origin marking for many of the imported tires. These tires, with the
exception of the racing slicks from the United States will remain products of China, Thailand, and Taiwan
after Canadian processing and must be appropriately marked with their respective country of origin. The
racing slicks, from the United States, having been substantially transformed in Canada may be marked “Made
in Canada.”
We are also informing you that some of your tires, upon import into the United States, may be subject to
antidumping duties or countervailing duties (AD/CVD). When there is a question as to whether merchandise
is subject to an antidumping or countervailing duty order or considered to be defined by the scope of an
order, such a determination is governed by the U.S. Department of Commerce’s International Trade
Administration (“Commerce”). Commerce issues scope rulings to determine whether merchandise which is
in commercial production is covered by the scope of an antidumping or countervailing duty order.
Commerce’s scope rulings are separate and distinct from decisions issued by CBP regarding tariff
classification and country of origin for purposes such as duty assessment and marking.
To seek a scope ruling, please visit the website of Commerce’s International Trade Administration. A guide
to seeking a scope ruling can be found at
https://access.trade.gov/help/Scope_Ruling_Guidance_(4.1.2022).pdf. A list of current AD/CVD
investigations at the United States International Trade Commission can be viewed on its website at
http://www.usitc.gov. Additionally, messages sent by Commerce to CBP regarding AD/CVD cash deposits
and liquidation can be searched using ACE or CBP’s search tool at
https://trade.cbp.dhs.gov/ace/adcvd/adcvd-public/#.
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 Matthew Sullivan at [email protected].
Sincerely,
(for)
James P. Forkan
Director
National Commodity Specialist Division