H312859

HQ H312859 August 5, 2021 OT:RR:CTF:VS H312859 AP CATEGORY: Classification Mr. Jorge L. Garcia Parker & Company 8101 San Gabriel Laredo, TX 78045 RE: Unassembled dog pens and extension kits; USMCA; Country of Origin; Section 301 Dear Mr. Garcia: This is in response to your July 31, 2020 ruling request, on behalf of Clearly Love Pets LLC (“importer”), concerning the eligibility of certain unassembled dog pens and extension kits for duty-free treatment under the United States-Mexico-Canada Agreement (“USMCA”) and their country of origin for purposes of Section 301 trade remedies. The total costs of the dog pen and extension kit components submitted in connection with this ruling request will be treated as confidential pursuant to 19 C.F.R. § 177.2(b)(7). The information contained within brackets and the bills of materials forwarded to our office will not be released to the public and will be withheld from published versions of this ruling. FACTS: The goods at issue are unassembled Lucidium dog pens (small, medium, large) and extension kits. Each dog pen consists of acrylic walls, aluminum tubes and plastic connectors, and comes in four colors, three sizes, and two heights. The acrylic sheets forming the acrylic door and wall panels will be cut in Mexico by computer numerical control (“CNC”) machine from U.S.-originating acrylic. The door of the dog pen will be pre-assembled in Mexico and will be packaged together with the other components and exported to the U.S. as an unassembled pen. The wall panels, tubes, connectors, and hardware will remain unassembled until they are received by the U.S. consumer. Based on the information in your submission, the National Commodity Specialist Division (“NCSD”) determined that by application of General Rules of Interpretation (“GRIs”) 1, 2(a), and 6, the unassembled dog pen would be classifiable in subheading 3924.90.5650, Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”). The individual component parts of the pen are: Components: Origin: HTSUS: Total Cost: Door assembly: Door latch assembly (2 sets) China 8301 $[ ] Die cast hinges (2 pcs) China 8302 $[ ] Stainless steel hinge nut plate (2 pcs) China 8301 $[ ] Plastic corner connector (2 pcs) China 3926 $[ ] Plastic wall connector (2 pcs) China 3926 $[ ] Plastic lock sleeve China 3926 $[ ] Plastic pivot-moving China 3926 $[ ] Plastic catch-moving China 3926 $[ ] Plastic pivot-fixed China 3926 $[ ] Plastic catch-fixed China 3926 $[ ] Stainless steel gusset China 7326 $[ ] Stainless steel panel screw set (4 pcs) China 7318 $[ ] Stainless hinge screws (8 pcs) Taiwan 7318 $[ ] Stainless steel hinge lock nuts (4 pcs) Taiwan 7318 $[ ] Plated steel pivot screw Taiwan 7318 $[ ] Aluminum swing tube Taiwan 7608 $[ ] Aluminum hinge tube Taiwan 7608 $[ ] Aluminum cross tube (15 pcs) Taiwan 7608 $[ ] Aluminum wall tube (4 pcs) Taiwan 7608 $[ ] Aluminum corner tubes (3 pcs) Taiwan 7608 $[ ] Structural adhesive Mexico 3506 $[ ] Foam spacer USA/Mexico 3921 $[ ] Acrylic door panels USA/Mexico 3920 $[ ] Plastic film logo sticker USA/Mexico 3919 $[ ] Plastic door spacer USA/Mexico 3920 $[ ] Plastic polybag USA/Mexico 3923 $[ ] Total cost: $[ ] The remaining components of the pen: Aluminum corner tube (3 pcs) Taiwan 7608 $[ ] Bagged stainless steel panel screw set China 7318 $[ ] Bagged plastic connectors (1 bag) China 3926 $[ ] Bagged plastic connectors, 4 corners (1 bag) China 3926 $[ ] Bagged plastic connectors, 4 walls (1 bag) China 3926 $[ ] Polybag China 3923 $[ ] Steel hex key (Allen key) USA/Mexico 8204 $[ ] Cardboard shipping carton USA/Mexico 4819 $[ ] Cardboard acrylic box USA/Mexico 4819 $[ ] Cardboard corner protectors (4 pcs) USA/Mexico 4823 $[ ] Cardboard tube wrap (2 pcs) USA/Mexico 4819 $[ ] Cardboard filler USA/Mexico 4823 $[ ] Expanded polystyrene block USA/Mexico 3926 $[ ] Acrylic wall panels (7 pcs) USA/Mexico 3920 $[ ] Printed user guide USA/Mexico 4911 $[ ] Wooden pallet Mexico $[ ] Total Cost: $[ ] The extension kit consists of aluminum tubes, acrylic wall panels, and plastic connectors allowing for the expansion of the pen by two feet in one direction. No parts will be pre-assembled. The extension kit will be packaged and sold separately from the dog pen and will be imported unassembled from Mexico. The NCSD determined that by application of GRIs 1, 2(a), and 6, the unassembled extension kits would be classifiable in subheading 3926.90.9985, HTSUSA. The extension kits consist of the following component parts: Components: Origin: HTSUS: Total Cost: 27” kit: Acrylic wall panels (2 pcs) USA 3920 $[ ] Aluminum wall tube (2 pcs) Taiwan 7608 $[ ] Aluminum cross tube (4 pcs) Taiwan 7608 $[ ] Plastic wall connector (4 pcs) China 3926 $[ ] Stainless steel panel screw (9 pcs) China 7318 $[ ] Stainless steel panel nut (9 pcs) China 7318 $[ ] Steel hex key China 8204 $[ ] Total Cost: $[ ] 36” kit: Acrylic wall panels (2 pcs) USA 3920 $[ ] Aluminum wall tube (2 pcs) Taiwan 7608 $[ ] Aluminum cross tube (4 pcs) Taiwan 7608 $[ ] Plastic wall connector (4 pcs) China 3926 $[ ] Stainless steel panel screw (9 pcs) China 7318 $[ ] Stainless steel panel nut (9 pcs) China 7318 $[ ] Steel hex key China 8204 $[ ] Total Cost: $[ ] ISSUES: Whether the unassembled pen and extension kits containing non-USMCA originating components will be eligible for preferential tariff treatment under USMCA when they are imported from Mexico into the U.S. What is the country of origin for the pen and the extension kit for the purposes of Section 301 remedies? LAW AND ANALYSIS: USMCA Preferential Treatment 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 states, in relevant part: … (b) 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- the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries; the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials; the good is a good produced entirely in the territory of one or more USMCA countries using nonoriginating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); or except for a good provided for in any of chapters 61 through 63— (A) the good is produced entirely in the territory of one or more USMCA countries; (B) one or more of the nonoriginating materials provided for as parts under the tariff schedule and used in the production of the good do not satisfy the requirements set forth in this note because— (1) both the good and its materials are classified under the same subheading or under the same heading that is not further subdivided into subheadings; or (2) the good was imported into the territory of a USMCA country in unassembled form or disassembled form but was classified as an assembled good pursuant to general rule of interpretation 2(a) of the tariff schedule, and (C) the regional value content of the good, determined in accordance with subdivision (c) of this note, is not less than 60 percent if the transaction value method is used, or not less than 50 percent if the net cost method is used, and such good satisfies all other applicable provisions of this note. … (c) [Format adjusted for alignment.] Regional value content. -- Except as provided in subdivision (c)(v) of this note, the regional value content of 

USMCA Preferential TreatmentThe 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 states, in relevant part:… (b) 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-the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries;the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials;the good is a good produced entirely in the territory of one or more USMCA countries using nonoriginating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); orexcept for a good provided for in any of chapters 61 through 63—(A) the good is produced entirely in the territory of one or more USMCA countries;(B) one or more of the nonoriginating materials provided for as parts under the tariff schedule and used in the production of the good do not satisfy the requirements set forth in this note because—(1) both the good and its materials are classified under the same subheading or under the same heading that is not further subdivided into subheadings; or(2) the good was imported into the territory of a USMCA country in unassembled form or disassembled form but was classified as an assembled good pursuant to general rule of interpretation 2(a) of the tariff schedule, and(C) the regiona