H314560

HQ H314560 April 27, 2021 OT:RR:CTF:VS H314560 UBB CATEGORY: Origin Georgi N. Mifodjev 1101 Prospect Ave Westbury, NY 11590 RE: Country of Origin, and Application of USMCA to certain metal powders. Dear Mr. Mifodjev: This is in response to your September 22, 2020 ruling requests, filed on behalf of Oerlikon Metco (US), Inc. (“Oerlikon” or “importer”), regarding the country of origin, and application of the United States Mexico Canada Agreement (USMCA) of certain metal powders, which will be prepared in Canada, for purposes of marking and preferential duty treatment under the USMCA. FACTS: Oerlikon is a materials and surface solutions provider that offers specialized coating services, coating equipment and materials. The subject goods are various metal powders that are identified by internal product numbers with Harmonized Tariff Schedule of the United States (“HTSUS”) classification subheadings provided in the ruling requests, as set forth below: HMBAM040 is a metal powder consisting of non-agglomerated tungsten carbides and nickel, and functions as a metallic binder. The metal powder is used in thermal spray surface coatings. You state that this metal powder is 58% tungsten carbides (subheading 2849.90.00, HTSUS) from China, 40% tungsten carbide (subheading 2849.90.00, HTSUS) from the United States, and 2% nickel (subheading 7504.00.00, HTSUS) from Canada. Therefore, the end-product metal powder is made from partially non-originating material. The materials are blended at your facility in Fort Saskatchewan in Alberta, Canada. You state that all raw materials are tested, then gathered and blended for 45 minutes. Blended samples are then sent to a lab for testing and certification. In your submission, you provide the specific percentage content of each component that is blended to produce the end-product, as well as the time it takes to test, blend, and retest the materials. You claim the end-product is classified under subheading 3824.30.00, HTSUS, and that, having undergone a tariff shift, is a product of Canada. Metco 51019A is a metal powder consisting of non-agglomerated tungsten carbides and nickel. The powder is used as a thermal spray coating. You state that the end-product metal powder is 60% tungsten carbides (subheading 2849.90.00, HTSUS) from China and 40% nickel alloy (subheading 7504.00.00, HTSUS) from Belgium. Therefore, the end-product metal powder is made from partially non-originating material. You state that all raw materials have some testing to release material, that material is typically added to bottles one at a time with no blend, and that one bottle is sent to the lab for certification. In your submission, you provide the specific percentage content of each component that makes up the end-product, as well as the time it takes to test and package the product. You claim the end-product is classified under subheading 3824.30.00, HTSUS, and that, having undergone a tariff shift, is a product of Canada. Metco 54122A-0 is a metal powder consisting of non-agglomerated tungsten carbides (subheading 2849.90.00, HTSUS) from China and nickel (subheading 7504.00.00, HTSUS) from Canada. You state that the end-product metal powder is 98% tungsten carbides from China and 2% nickel from Canada. Therefore, the end-product metal powder is made from partially non-originating material. The materials are blended at your facility in Fort Saskatchewan in Alberta, Canada. You state that all raw materials have some testing to release material, that the materials are blended for four hours and then discharged and analyzed by a lab. In your submission, you provide the specific percentage content of each component that is blended to produce the end-product, as well as the time it takes to test and blend the materials. You claim the end-product is classified under subheading 3824.30.00, HTSUS, and that, having undergone a tariff shift, is a product of Canada. In your ruling requests, you note that you are looking for a binding ruling for subheading 3824.30.00, HTSUS for each of the end-products, an origin ruling for labeling these products “Made in Canada”, as well as to deem these products eligible for preferential duty treatment under USMCA. ISSUE: Whether the subject metal powder is eligible for preferential tariff treatment pursuant to the USMCA and may be marked as a product of Canada. LAW AND ANALYSIS: Eligibility for Preferential Tariff Treatment under USCMA The United States-Mexico-Canada Agreement (“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)). GN 11 of the HTSUS implements the USMCA. GN 11(a) provides: Goods that originate in the territory of Mexico, Canada or the United States (hereinafter referred to as “USMCA country” or “USMCA countries” as further defined in subdivision (l)(xxiv) of this note) under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury (including Uniform Regulations provided for in the USMCA), and goods enumerated in subdivision (p) of this note, when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn, followed by the symbol “S” in parentheses, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act; and Goods that originate in the territory of a USMCA country under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury, when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn, followed by the symbol “S+” in parentheses, or under a subheading whose article description provides for originating goods of one or more USMCA countries, as the case may be, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act. 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— 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 … We note that the input materials for all three end-product metal powders consist of various tungsten carbides, nickel powder, and nickel alloy powder. You classify the input tungsten carbides in subheading 2849.90.00, HTSUS, and the nickel power and nickel alloy as subheading 7504.00.00, HTSUS. Based on the information provided, we agree that the input tungsten carbides are classifiable under subheading 2849.90.00, HTSUS, and the nickel and nickel alloy powders are classifiable under subheading 7504.00.00, HTSUS. Based on the documentation provided, we also concur that the proper classification of the end-product metal carbide powders is subheading 3824.30.00, HTSUS. Since the end-product metal powders all contain non-originating materials, they are not cons

Eligibility for Preferential Tariff Treatment under USCMAThe United States-Mexico-Canada Agreement (“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)). GN 11 of the HTSUS implements the USMCA. GN 11(a) provides: Goods that originate in the territory of Mexico, Canada or the United States (hereinafter referred to as “USMCA country” or “USMCA countries” as further defined in subdivision (l)(xxiv) of this note) under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury (including Uniform Regulations provided for in the USMCA), and goods enumerated in subdivision (p) of this note, when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn, followed by the symbol “S” in parentheses, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act; andGoods that originate in the territory of a USMCA country under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury, when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn, followed by the symbol “S+” in parentheses, or under a subheading whose article description provides for originating goods of one or more USMCA countries, as the case may be, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act.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,