H325287

HQ H325287 June 15, 2022 OT:RR:CTF:VS H325287 RMC CATEGORY: Classification Rachel Goding International Automated Brokers, Inc. 1655 St. Andrews Cove San Diego, CA 92154 RE: Tariff Classification and USMCA Eligibility of Super Glue Imported from Mexico Dear Ms. Goding: This is in response to your correspondence dated April 28, 2022, in which you request a ruling on behalf of Pacer Technology on the tariff classification of retail-packaged super glue imported from Mexico and the eligibility of that product for preferential tariff treatment under the United States-Mexico-Canada Agreement (“USMCA”). Your request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division for response. FACTS: According to the information provided, a Mexican entity will package super glue for retail sale in 0.1-ounce bottles. The Mexican entity will purchase 20-kilogram containers of Indian-origin glue classified in subheading 3506.91, Harmonized Tariff Schedule of the United States (“HTSUS”). It will then prepare the glue for retail sale by making the bottle, tip, and cap from U.S.-origin resin. Once the retail bottle is complete, it plans to fill the bottles with the Indian-origin glue and affix U.S.-origin labels. Finally, it plans to place the glue bottles in U.S.-origin retail packaging (described as “blister” packs) and place the goods in boxes for shipment to the United States. You assert that the retail-packaged glue will be properly classified under subheading 3506.10.50, HTSUS, and that the product will be eligible for USMCA preferential tariff treatment when it is entered for consumption in the United States. ISSUES: Whether the retail-packaged super glue will be properly classified under subheading 3506.10.50, HTSUS. Whether the retail-packaged super glue will be eligible for USMCA preferential tariff treatment when it is imported from Mexico into the United States and entered for consumption. LAW AND ANALYSIS: Classification Classification of goods under the HTSUS is governed by 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 2 through 6 may then be applied in order. By operation of GRI 1, the applicable subheading for the retail-packaged super glue will be 3506.10.50, HTSUS, which provides for “prepared glues and other prepared adhesives, not elsewhere specified or included; products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1 kg, other.” The duty rate will be 2.1% ad valorem. Eligibility for USMCA Preferential Tariff Treatment 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)). General Note (“GN”) 11 of the HTSUS implements the USMCA. 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 … Here, you state that the super glue is sourced in bulk from India and will undergo certain operations in Mexico. You described those operations as consisting of repackaging the bulk product into smaller containers to be sold at retail in the United States. Therefore, the super glue is not “wholly obtained or produced entirely” in Mexico pursuant to GN 11(b)(i) or “produced entirely” in Mexico “exclusively” from originating materials pursuant to GN 11(b)(ii). Additionally, the retail-packaged super glue does not qualify as “a good produced entirely in the territory of one or more USMCA countries using nonoriginating materials” under GN 11(b)(iii). GN 11(l)(xvi) defines “production” as “growing, cultivating, raising, mining, harvesting, fishing, trapping, hunting, capturing, breeding, extracting, manufacturing, processing or assembling a good” or “the farming of aquatic organisms through aquaculture.” Because that definition does not include repackaging, the super glue does not undergo “production” in Mexico and does not satisfy “all applicable requirements” of GN 11. As a result, we do not reach the question of whether the product-specific rule of origin contained in GN 11(o) is satisfied. HOLDING: Based on the information provided, the retail-packaged super glue will be classified in subheading 3506.10.50, HTSUS, and will be ineligible for preferential tariff treatment under the USMCA when imported from Mexico into the United States and entered for consumption Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a Customs Service field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.” A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction. Sincerely, Monika R. Brenner, Chief Valuation and Special Programs Branch

ClassificationClassification of goods under the HTSUS is governed by 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 2 through 6 may then be applied in order.By operation of GRI 1, the applicable subheading for the retail-packaged super glue will be 3506.10.50, HTSUS, which provides for “prepared glues and other prepared adhesives, not elsewhere specified or included; products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1 kg, other.” The duty rate will be 2.1% ad valorem.Eligibility for USMCA Preferential Tariff TreatmentThe 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)). General Note (“GN”) 11 of the HTSUS implements the USMCA. 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