H341684

H341684 July 10, 2025 OT:RR:CTF:VS H341684 JH CATEGORY: Origin Jae Chung President QS Customs Brokers, Inc. 2020 Piper Ranch Rd, San Diego, CA 92154-0000 RE: Classification; Country of Origin Marking; USMCA; Cargo Container Dear Mr. Chung: This is in response to your August 19, 2024 ruling request, filed on behalf of Hyundai Translead San Diego (or “importer”), regarding the classification, eligibility for preferential tariff treatment under the United States-Mexico-Canada Agreement (“USMCA”), and country of origin marking of the Hyundai cargo container. FACTS: The importer produces a cargo container for use with heavy trucks. The cargo container is stated to be sold as an aftermarket part for heavy trucks. The cargo container is assembled in Mexico with the following parts that consist of USMCA originating and non-USMCA originating materials: • Front Wall Assembly • Top Rail • Bottom Rail • Rear Frame Assembly and Installation • Side Wall Assemblies • Floor Assembly • Roof Assembly & Installation • Rear Door Installation • Electrical Harness All of the non-USMCA originating materials used in the production of the parts are classifiable outside of heading 8707. The cargo container is built in Mexico using a seven-step process: 1. Side wall assemblies are installed onto the floor assembly for the container; 2. the front wall assembly is installed onto the floor assembly and onto the side walls with the top rail’s connecters; 3. the rear frame assembly is connected onto the floor assembly, top rail, and bottom rail, and prepared for future installations; 4. the roof assembly is installed and secured with rivets; 5. the electrical harness is installed, connected, and routed to necessary electrical components of the assembly; 6. the rear door assembly is installed; and 7. the cargo container is labelled for compliance, and inspection. Once the cargo container is assembled, additional hardware (also originating from USMCA and non-USMCA countries) consisting of washers, nuts, bolt brackets, mud flap bracket/retainers, mud flaps, HH bolts, H lock nuts, washer fenders, space fillers, and the rear bumper assembly are sent along with the cargo container to be used for the truck body assembly. The cargo container and the additional hardware are sent to authorized dealers in the United States (“U.S.”) (California, Texas, Michigan, Georgia, Utah, Illinois, Pennsylvania) who will conduct the process of assembling the cargo container onto the truck body assembly for heavy trucks. ISSUES: What is the tariff classification for the cargo container? What is the country of origin for marking purposes of the cargo container? Whether the cargo container is eligible for USCMA preferential tariff treatment? LAW AND ANALYSIS: Classification Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that classification shall be determined first 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 be applied in order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level. The Explanatory Notes of the Harmonized Commodity Description Coding System (“ENs”) constitute the official interpretation of the Harmonized System. While 2 not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). EN 87.07 states, in relevant parts that “[t]his heading covers bodies (including cabs) for the motor vehicles of headings 87.01 to 87.05.” The cargo container is eo nomine classified under heading 8707, HTSUS, which provides for “[b]odies (including cabs), for the motor vehicles of headings 8701 to 8705.” Given the cargo container will be used in vehicles for the transport of goods of heading 8704, HTSUS, the cargo container is classifiable under subheading 8707.90.50, HTSUS, which provides, in relevant part, for “other bodies for vehicles of heading 8704.” Country of Origin Marking The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C.§ 1304), provides that, unless excepted, every article of foreign origin (or its cargo container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its cargo container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. To provide a more seamless transition to the USMCA for Canadian and Mexican traders, at this time, CBP continues to utilize the marking rules in 19 C.F.R. Part 102, with the exception of 19 C.F.R. § 102.19, for purposes of country of origin marking with respect to goods of those countries. Title 19, C.F.R. § 102.11(a) provides that 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 § 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. “Foreign material” is defined in 19 C.F.R. § 102.1(e) as “a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.” Here, sections 102.11(a)(1) and 102.11(a)(2) do not apply because the product will neither be wholly obtained or produced nor produced exclusively from “domestic” (Mexican, in this case) materials. Accordingly, each non-Mexican material must meet the applicable 3 change in tariff classification set out in Section 102.20 in order for the product to qualify to be marked as a product of Mexico. The relevant tariff shift requirement in Part 102.20 for the cargo container requires: 8707-8708 A change to heading 8707 from any other heading, except from subheading 8708.29 when that change is pursuant to General Rule of Interpretation 2(a) Based on the information from the diagrams in your submission, all of the foreign materials of the cargo container are classified outside of heading 8707. Therefore, the tariff shift requirement is met. As such, the country of origin of the cargo container for marking purposes will be Mexico. 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: (i) 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 pare

Classification Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that classification shall be determined first 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 be applied in order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level. The Explanatory Notes of the Harmonized Commodity Description Coding System (“ENs”) constitute the official interpretation of the Harmonized System. While 2 

not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). EN 87.07 states, in relevant parts that “[t]his heading covers bodies (including cabs) for the motor vehicles of headings 87.01 to 87.05.” The cargo container is eo nomine classified under heading 8707, HTSUS, which provides for “[b]odies (including cabs), for the motor vehicles of headings 8701 to 8705.” Given the cargo container will be used in vehicles for the transport of goods of heading 8704, HTSUS, the cargo container is classifiable under subheading 8707.90.50, HTSUS, which provides, in relevant part, for “other bodies for vehicles of heading 8704.” Country of Origin Marking The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C.§ 1304), provides that, unless excepted, every article of foreign origin (or its cargo container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its cargo container) will permit, in such a manner as to in