H322367

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection 
 HQ H322367 June 3, 2022 OT:RR:CTF:VS H322367 CMR CATEGORY: Classification Robert T. Givens, Esq. Givens & Johnston, PLLC 950 Echo Lane Suite 360 Houston, TX 77024-2788 RE: Classification, Country of Origin, and Eligibility for Preferential Tariff Treatment under the United States – Mexico – Canada Free Trade Agreement of Air Brake Hoses Dear Mr. Givens: This is in response to your request on behalf of your client, Strato Inc., for a ruling on the classification, eligibility for preferential tariff treatment under the United States – Mexico – Canada Free Trade Agreement (USMCA), and country of origin of air brake hoses assembled in Mexico. FACTS: The air brake hoses at issue consist of hose and fittings. As you state, “[t]he hose is constructed of two layers of rubber with steel wire reinforcements between these layers.” You describe the hose as reinforced hose of vulcanized rubber. It will be imported into Mexico on reels from the United States, Vietnam or the Philippines. The fittings are sourced from India, China or Vietnam. The air brake hose is produced by feeding the imported bulk length hose into a machine that cuts the hose to the required length. The cut lengths of hose are taken to another station where an employee adds the specified fittings along with two crimp rings. The employee applies an adhesive to the fittings to ensure the bond which seals the fittings to the hose. You state: These fittings are then inserted into the ends of the cut length of hose and pressed into position with a pneumatic press with a specially designed ram. The ram seats the fitting to the correct depth. The crimp ring is then slid into position and the assembly is then inserted into a machine to crimp the crimp ring, making the bond between the hose and fitting permanent. The hose is then inspected to ensure all the dimensions and tolerances are to specification. [Footnote omitted.] You submit that the air brake hoses are classified as parts of railway cars in subheading 8607.21, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts of railway or tramway locomotives or rolling stock: Brakes and parts thereof: Airbrakes and parts thereof[.]” Further you submit that the air brake hoses qualify for preferential tariff treatment under the USMCA. ISSUES: Whether the air brake hoses are classified in subheading 8607.22, HTSUS, as parts of railway cars or in subheading 4009.22, HTSUS, which provides for “Tubes, pipes, and hoses, of vulcanized rubber other than hard rubber, with or without fittings: Reinforced or otherwise combined only with metal: With fittings” Whether the air brake hoses qualify for preferential tariff treatment under the USMCA. Whether the country of origin of the air brake hoses is Mexico or another country for purposes of country of origin marking. LAW AND ANALYSIS: Classification Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 2 through 6 may then be applied in order. You believe that the air brake hoses should be classified in subheading 8607.21, HTSUS, as parts of railway cars. We disagree. Note 2(a), Section XVII, HTSUS, provides: The expressions "parts" and "parts and accessories" do not apply to the following articles, whether or not they are identifiable as for the goods of this section: Joints, washers or the like of any material (classified according to their constituent material or in heading 8484) or other articles of vulcanized rubber other than hard rubber (heading 4016); As Chapter 86 falls within Section XVII, Note 2(a) applies to preclude classification of the finished air brake hoses as parts in subheading 8607.21, HTSUS. Thus, the finished air brake hoses which are imported into the United States are classified in subheading 4009.22, HTSUS, as hoses of vulcanized rubber, other than hard rubber, reinforced or otherwise combined only with metal, with fittings. USMCA Preferential Eligibility 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)(i) 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 . . . 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 In this case, the air brake hoses are assembled in Mexico using non-originating components. Therefore, we apply GN 11(b)(iii) and look to the applicable tariff shift rule set forth in GN 11(o). As these goods are classified in subheading 4009.22, HTSUS, and are used as parts of air brakes for rail cars, the applicable tariff shift rule is: (C) A change to tubes, pipes, or hoses of subheading 4009.22, other than those of a kind for use in a motor vehicle of tariff items 8702.10.60, 8702.90.30 or 8702.90.60, subheadings 8703.21 through 8703.90, 8704.21 or 8704.31, or heading 8711, from any other heading, except from headings 4010 through 4017. As the hose as imported into Mexico is classified in subheading 4009.21, HTSUS, which provides for “Tubes, pipes, and hoses, of vulcanized rubber other than hard rubber, with or without fittings: Reinforced or otherwise combined only with metal: Without fittings,” the requisite tariff shift is not met. The hose imported into Mexico and the air brake hose exported from Mexico to the United States are both classified in the same heading, that is, heading 4009, HTSUS. Thus, the air brake hose does not qualify for preferential tariff treatment under the USMCA. Marking Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), 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 

ClassificationClassification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 2 through 6 may then be applied in order. You believe that the air brake hoses should be classified in subheading 8607.21, HTSUS, as parts of railway cars. We disagree. Note 2(a), Section XVII, HTSUS, provides:The expressions "parts" and "parts and accessories" do not apply to the following articles, whether or not they are identifiable as for the goods of this section:Joints, washers or the like of any material (classified according to their constituent material or in heading 8484) or other articles of vulcanized rubber other than hard rubber (heading 4016); As Chapter 86 falls within Section XVII, Note 2(a) applies to preclude classification of the finished air brake hoses as parts in subheading 8607.21, HTSUS. Thus, the finished air brake hoses which are imported into the United States are classified in subheading 4009.22, HTSUS, as hoses of vulcanized rubber, other than hard rubber, reinforced or otherwise combined only with metal, with fittings.USMCA Preferential EligibilityThe 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)(i) 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 thi