H327665

H327665 March 25, 2025 OT:RR:CTF:VS H327665 RRB CATEGORY: Classification; Origin TARIFF NO.: 8431.49.90 Center Director Machinery Center of Excellence and Expertise U.S. Customs and Border Protection 109 Shiloh Drive, Suite 300 Laredo, TX 78045 Attn: Erika De Leon; Supervisory Import Specialist Gilbert Vega, Import Specialist RE: Application for Further Review of Protest No. 3801-22-107986; Tariff Classification and Country of Origin of Cover Assemblies for a Backhoe Loader; Section 301 Measures Dear Port Director: This is in response to the Application for Further Review (“AFR”) of Protest No. 3801-22-107986, timely filed on April 27, 2022, by Page-Fura, P.C., on behalf of CNH Industrial America LLC (“Protestant” or “CNH”). This decision concerns U.S. Customs and Border Protection’s (“CBP”) classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), and the country of origin of cover assemblies for a backhoe loader. FACTS: The protested merchandise consists of cover assemblies for a backhoe loader. A backhoe loader is a form of construction equipment that is used in excavation projects. A backhoe loader is comprised of the following: a cab within which the operator sits and where all controls necessary for the operation of the backhoe loader are found; an articulated arm at one end to which is attached a digging bucket or backhoe; and a shovel/bucket attachment at the other end for use in moving and/or lifting construction or excavation debris. After importation, the cover assemblies are installed on the left and right interior sides of the cab’s windshield. The left-hand cover assembly at issue is identified as Part Number 47955642 and the right-hand cover-assembly at issue is identified as Part Number 48147488. The Protestant states that the principal function and design of the cover assemblies is as a support element. The cover assemblies are manufactured for the Protestant by an unrelated third- party seller in Canada. The third-party seller imports various components used to manufacture the cover assemblies in Canada. The left-hand cover assembly consists of a plastic inside support pillar manufactured in the United States through an injection mold process, a speaker assembly sourced from China, a coat hook sourced from Germany, and other minor components. The right-hand cover assembly consists of a plastic inside support pillar manufactured in the United States through an injection mold process, a speaker assembly sourced from China, a fastener sourced from China, and other minor components. According to the bill of materials for the left-hand and right- hand cover assemblies, the inside support pillars constitute the greatest total cost among all of the components comprising the cover assemblies. In support of its protest submission, the Protestant provided a diagram of what it describes as an assembly process in Canada that is “not particularly complex.” According to this diagram, the assembly process for the right-hand cover assembly begins with a worker aligning and inserting the Chinese speaker assembly into a pre-cut hole in the injection-molded plastic cover that was manufactured in the United States. Four screws are then used to secure the speaker assembly along with a speaker grill to the underlying cover, thus, completing the assembly process for the right-hand cover assembly. The assembly process for the left-hand cover assembly is identical but requires an additional step of inserting a coat hook into a pre-cut hole in the cover assembly and securing it into place using fasteners. The protested merchandise consists of one entry that was entered at the Port of Detroit (“Port”) on December 19, 2021, under subheading 8518.29.80, HTSUS, as “Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency electric amplifiers; electric sound amplifier sets; parts thereof: Loudspeakers, whether or not mounted in their enclosures: Other: Other,” with a country of origin of Canada. On January 19, 2022, your office issued a proposed Notice of Action (“CBP Form 28”) to the Protestant on the entry at issue, requesting verification of the country of origin of the subject merchandise. In the Protestant’s initial response to the CBP Form 28, which was dated January 25, 2022, they stated that the merchandise was mistakenly entered under subheading 8518.29.80, HTSUS, and that the correct classification is subheading 8518.21.00, HTSUS, which provides for “Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones and earphones, 2 whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency electric amplifiers; electric sound amplifier sets; parts thereof: Loudspeakers, whether or not mounted in their enclosures: Single loudspeakers, mounted in their enclosures.” Also in their response, dated January 25, 2022, the Protestant stated that the speakers are imported from China and the “enclosure portion” is made in Canada, but “due to a mistake of fact, [the seller] typed country of origin Canada on the commercial invoice.” Based upon the Protestant’s January 25, 2022, response to the CBP Form 28, your office rate advanced the subject entry. Accordingly, the subject entry was liquidated on February 4, 2022, under subheading 8518.21.00, HTSUS, with a country of origin of China. As a product of China, the protested merchandise was subject to an additional 7.5 percent ad valorem duty under Section 301(b) of the Trade Act of 1974 (“Section 301 measures”), imposed by subheading 9903.88.15, HTSUS. On February 15, 2022, the Protestant submitted a revised response to the CBP Form 28. In the revised response, they explained that “upon further investigation and research data with [their] supplier-manufacturer,” they believe that the merchandise should be classified under subheading 8431.49.90, HTSUS, as “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8426, 8429 or 8430: Other: Other,” with a country of origin of Canada. In support, they provided the cost breakdown for each of the components, the country of manufacture of each component, the value of materials, the cost to produce the left- hand and right-hand cover assemblies and the percentage of each cover assembly that is Chinese content The Protestant filed this Protest and AFR on April 27, 2022, asserting that the cover assemblies for a backhoe loader are properly classified under subheading 8431.49.90, HTSUS, as “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Other: Other”; that the country of origin of the protested merchandise is either Canada or the United States; and that therefore, the merchandise is not subject to Section 301 duties. ISSUES: (1) What is the proper classification of the cover assemblies for a backhoe loader? (2) What is the country of origin of the cover assemblies for a backhoe loader for purposes of Section 301 trade measures? LAW AND ANALYSIS: We note that this matter is protestable under 19 U.S.C. § 1514(a) as a decision on classification and relating to the liquidation or reliquidation of an entry. The protest was timely filed within 180 days of liquidation. See 19 U.S.C. § 1514(c)(3). Further Review of Protest Number 3801-22-107986 was properly accorded to the Protestant pursuant to 19 C.F.R. § 174.24(b) because the decision against which the protest was 3 filed is alleged to involve questions of law or fact which have not been decided on by CBP or by the Customs courts. Tariff Classification Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI”). GRI 1 provides that the classification of goods shall be determined accordi

We note that this matter is protestable under 19 U.S.C. § 1514(a) as a decision on classification and relating to the liquidation or reliquidation of an entry. The protest was timely filed within 180 days of liquidation. See 19 U.S.C. § 1514(c)(3). Further Review of Protest Number 3801-22-107986 was properly accorded to the Protestant pursuant to 19 C.F.R. § 174.24(b) because the decision against which the protest was 3 

filed is alleged to involve questions of law or fact which have not been decided on by CBP or by the Customs courts. Tariff Classification Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied. Under GRI 6, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to GRIs 1 through 5. GRI 3(a) and (b) provide as follows: When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of