N317710

N317710 February 10, 2022 CLA-2-70:OT:RR:NC:N1:126 CATEGORY: Classification; Country of origin TARIFF NO.: 7019.90.5040 Steve Pepi Near North Customs Brokers US, Inc. 400 Essjay Road Suite 320 Williamsville, NY 14221 RE: The Classification of a Fiberglass Filter Bag assembled in Canada; Country of Origin; Marking; Section 301 trade remedy; 9903.88.03, HTSUS Dear Mr. Pepi: In your letter dated February 19, 2021, on behalf of your client, AES, you requested a tariff classification and country of origin marking determination regarding a Fiberglass Filter Bag assembled in Canada. A sample was submitted with your ruling request. The sample was sent to our U.S. Customs and Border Protection Laboratory for analysis. Our laboratory has now completed its analysis. The subject merchandise a two-part laminated roll consisting of a polytetrafluoroethylene (PTFE) membrane that is laminated to a woven fiberglass material. You indicated that the woven fiberglass material will be used to make bags for industrial machinery. A metal ring is sewn into the top of the Fiberglass Filter Bag. The Fiberglass Filter Bag is utilized to reduce or stop pollutants produced in industrial processes from going into the air. The filter bag is installed in dust collectors (or baghouses), with a cage in each filter bag to hold its shape. You further stated, the filter bag aids in collecting harmful/unwanted particulates from the air to help producers meet standards enforced by the Environmental Protection Agency. According to your submission, AES, purchases from various suppliers to complete the manufacturing process of the Fiberglass Filter Bags including rolls of woven glass fiber material (with PTFE membrane) manufactured in China (Scenario #1), or woven glass fiber material manufactured in the United States (U.S.) (Scenario #2). The woven fiberglass fabric is imported in rolls into Canada and undergoes a manufacturing process which is described as follows: Rolls are loaded onto roll lift. Roll lift introduces rolls to fabric spreader. Fabric spreader lays fabric out on cutting table. Cutting pattern is laid out. Edge trim is cut from fabric. Cutting of filter bags begins. Cut parts are divided and marked for seaming of filter bags. Parts are taken off cutting table and folded for seaming. Folding of cut parts. Staging of parts before seaming. Marking and folding of more cut parts. Seaming cut parts into the filter bag tubes. Metal hardware to be sewn into filter bags. Assembling hardware for filter bags. Producing parts for filter bags. Parts assembly. Sewing hardware into filter bags. Sewing parts onto filter bags. Beginning filter bag inspection. Finished filter bag Quality Control inspection. Folding filter bags for packaging. While the other components of the product all support the filtering function of the product, the filtering function itself is performed by the glass fiber material component of the article. Our U.S. Customs and Border Protection laboratory has determined that the fiberglass material is a fabric consisting of woven glass fibers and a PTFE coating. The glass fibers constitute the greater part of the weight of this material. The Fiberglass Filter Bag is a composite good comprised of different materials that are classifiable in different headings (glass fiber material, metal, and sewing thread). Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs) taken in order. GRI 3(b) of the HTSUS provides, in relevant part, that composite goods which cannot be classified by reference to GRI 3(a) shall be classified as if they consisted of the material or component which gives them their essential character. The glass fiber component provides the essential character of this item. Classification The applicable subheading for the “Fiberglass Filter Bags” will be 7019.90.5040, HTSUS, which provides for glass fibers (including glass wool) and articles thereof…Other: Other. The rate of duty will be 4.3 percent ad valorem. Country of Origin The marking statute, Section 304(a), Tariff Act of 1930, as amended (19 U.S.C. § 1304(a)), 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 container) will permit in such manner as to indicate to an 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 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.” United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940). 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 §§ 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 goods which are subject to the provisions of 19 C.F.R. § 102.21. Applied in sequential order, the required hierarchy under 19 C.F.R. Section 102.11, establishes that: (a) 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 section 102.20 and satisfies any other applicable requirements of that section, and all other 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 Fiberglass Filter Bag is neither wholly obtained nor produced exclusively from “domestic” (Canada, in this case) materials. Accordingly, we look to section 102.11(a)(3). The applicable tariff shift requirement in section 102.20(o) for the Fiberglass Filter Bags of subheading 7019.90, HTSUS, consist of the following: A change to heading 7019 from any other heading, except from headings 7007 through 7018 or 7020. This tariff shift rule requires a shift to heading 7019, HTSUS, from any other heading. There are two Fiberglass Filter Bag components (the metal and the thread) classified in headings other than 7019, HTSUS, and these undergo the required tariff shift. The remaining component (the glass fiber material) is classified in 7019.90, HTSUS at the time they are imported into Canada and therefore does not undergo the change in tariff classification set out in 19 C.F.R. § 102.20(o). Since no country of origin determination can be made applying Section 102.11(a) for the components that were classified in heading 7019, HTSUS when imported into Canada, the analysis continues with Section 102.11(b), which instructs us to examine the Fiberglass Filter Bags “essential character” to determine its country of origin. Section 102.11(b) states, in relevant part: Except for a good that is specifically described in the Harmonized System as a set, or is classified as a set pursuant to General Rule of Interpretation [(“GRI”)] 3, where the country of origin cannot be determined under paragraph (a) of this section: The country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good …. In determining the “essential character” of the finished good, Section 102.18(b)(1) provide

continues with Section 102.11(b), which instructs us to examine the Fiberglass Filter Bags “essential character” to determine its country of origin.Section 102.11(b) states, in relevant part:Except for a good that is specifically described in the Harmonized System as a set, or is classified as a set pursuant to General Rule of Interpretation [(“GRI”)] 3, where the country of origin cannot be determined under paragraph (a) of this section:The country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good ….In determining the “essential character” of the finished good, Section 102.18(b)(1) provides, in relevant part:(b) (1) For purposes of identifying the material that imparts the essential character to a good under § 102.11, the only materials that shall be taken into consideration are those domestic or foreign materials that are classified in a tariff provision from which a change in tariff classification is not allowed under the § 102.20 specific rule or other requirements applicable to the good … (ii) Materials that may be considered include materials produced by the producer of the good and incorporated in the good. For example, if a producer of a good purchases raw materials and converts those raw materials into a component that is incorporated in the good, that component is a material that may be considered for purposes of identifying the materials that impart the essential character to the good, provided that the component is classified in a tariff provision from which a change in tariff classification is not allowed under the specific rule or other requirements applicable to the good; …(2) For purposes of determining which one of two or more materials described in paragraph (b)(1) of this section imparts the essential character to a good under § 102.11, various factors may be examined depending upon the type of good involved. These factors include, but are not limited to, the followi