H351116

H351116 April 16, 2026 OT:RR:CTF:VS H351116 MAT CATEGORY: Origin Ms. Kimberly Tracy OESL Automotive USA, LLC 2044 Austin Ave Rochester Hills, MI 48309 RE: Country of Origin; USMCA Eligibility; Applicability of Subheadings 9802.00.40, or 9802.00.80, HTSUS; Semi-Vulcanized Rubber Hoses Dear Ms. Tracy: This is in response to your ruling request dated July 18, 2025, filed on behalf of OESL Automotive USA, LLC (“Importer”), concerning the eligibility of certain semi-vulcanized rubber hoses for preferential tariff treatment under the United States-Mexico-Canada Agreement (“USMCA”), applicability for subheadings 9802.00.40, Harmonized Tariff Schedule of the United States (“HTSUS”), or 9802.00.80, HTSUS, treatment, and country of origin for marking purposes. FACTS: The Importer plans to manufacture the subject rubber hoses in the United States, export them to Mexico for further processing, and then re-import them into the United States for use as original parts in passenger vehicles and light trucks in the automotive industry. The manufacturing of the finished goods will be a three-step process. Step 1: Initial Manufacturing In the United States, the semi-vulcanization process for the rubber hoses begins with compounding, a multi-stage extrusion and reinforcement process. You assert that, first, U.S. originating chloroprene, classifiable in subheading 4009.11.00,1 HTSUS, is extruded to form the core. Then, a layer of U.S. originating nylon 6/66, classifiable in subheading 3908.10.00,2 1 Subheading 4009.11.00, HTSUS, provides for: “Tubes, pipes and hoses, of vulcanized rubber other than hard rubber, with or without their fittings (for example, joints, elbows, flanges): Not reinforced or otherwise combined with other materials: Without fittings.” 2 Subheading 3908.10.00, HTSUS, provides for: “Polyamides in primary forms: Polyamide-6, -11, -12, -6,6, -6,9, - 6,10 or -6,12.” HTSUS, is applied over the tube. Additional U.S. originating chloroprene is applied as a friction layer to promote adhesion between the layers. Next, the hose is reinforced with originating Aldora PET yarn classifiable in subheading 5604.90.20,3 Chinese HTSUS, which is imported in its raw form, twisted, treated with an isocyanate dip, and wound on spools for braiding. Lastly, an additional cover of U.S. originating chloroprene and butyl is extruded over the braided layer. During the first stage, partial vulcanization is performed, where controlled heat and pressure are applied to partially cross-link the rubber’s polymer chains. This results in a semi- vulcanized hose, which is stable, pliable, and not yet fully cured. The initial manufacturing sufficiently cures the hoses to preserve their structural integrity upon mandrel removal. The resulting partially cured hoses are then exported to Mexico to complete the curing process and shape the hoses into their final, desired form. Although the semi-vulcanized hoses are only partially cured and not functional in their form at this stage, they are classified in subheading 4009.31.00,4 HTSUS. Step 2: Final Processing In Mexico, the final stage of the vulcanization process includes fully curing the semi- vulcanized rubber hoses by subjecting them to heat and pressure in an autoclave or oven, which cross-links the rubber to achieve its ultimate material properties including enhanced elasticity, tensile strength, and resistance to environmental factors. In addition, the hoses undergo forming, which involves shaping them into specific configurations (e.g., curves and precise dimensions from mandrels or molds) during or immediately following the final vulcanization, in conjunction with additional heat to stabilize the structure. Lastly, the semi-vulcanized rubber hoses are cut to specified lengths. You assert that the finished semi-vulcanized rubber hoses are classifiable in subheading 4009.31.00, HTSUS. Step 3: Re-importation into the United States The fully cured, semi-vulcanized rubber hoses are imported back into the United States and are intended for use as original parts in passenger vehicles and light trucks in the automotive industry. 3 Subheading 5604.90.20, HTSUS, provides for: “Rubber thread and cord, textile covered; textile yarn, and strip and the like of heading 5404 or 5405, impregnated, coated, covered or sheathed with rubber or plastics: Other: High tenacity yarn of polyesters, of nylon or other polyamides or of viscose rayon, impregnated or coated (201).” 4 Subheading 4009.31.00, HTSUS, provides for: “Tubes, pipes and hoses, of vulcanized rubber other than hard rubber, with or without their fittings (for example, joints, elbows, flanges): Reinforced or otherwise combined only with textile materials: Without fittings.” 2 ISSUES: 1. Whether the semi-vulcanized rubber hoses are eligible for preferential tariff treatment under the USMCA. 2. Whether the semi-vulcanized rubber hoses qualify for subheadings 9802.00.40, HTSUS, or 9802.00.80, HTSUS, treatment. 3. Whether the semi-vulcanized rubber hoses are of U.S. or Mexican origin for country of origin marking purposes under 19 C.F.R. Part 102. LAW AND ANALYSIS: 1. Eligibility for Preferential Tariff Treatment under the USMCA 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, HTSUS, implements the USMCA and sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11, HTSUS, states, in relevant part: (a) Goods originating in the territory of a country named herein, pursuant to the United States-Mexico-Canada Agreement (USMCA), are subject to duty as provided herein, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the tariff schedule. For the purposes of this note, as provided in the tariff schedule – (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 parentheses, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act; … (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 … 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 – 3 (i) the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries; (ii) the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials; (iii) 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)); … Here, the goods do not qualify as wholly obtained or produced under GN 11(b)(i) or produced exclusively from originating materials under GN 11(b)(ii). We must therefore consider whether the merchandise qualifies as originating under GN 11(b)(iii). As noted above, the merchandise is classified in subheading 4009.31.00, HTSUS. The applicable product-specific r

1. Eligibility for Preferential Tariff Treatment under the USMCA 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, HTSUS, implements the USMCA and sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11, HTSUS, states, in relevant part: (a) Goods originating in the territory of a country named herein, pursuant to the United States-Mexico-Canada Agreement (USMCA), are subject to duty as provided herein, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the tariff schedule. For the purposes of this note, as provided in the tariff schedule – (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 parentheses, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act; … (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 … 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 ter