N325557

N325557 May 16, 2022 MAR-2 OT: RR: NC: N4:410 CATEGORY: Country of Origin Mr. Robert Casey Action Worldwide Inc. 1 Lincoln Blvd. Rouses Point, NY 12979 RE: The tariff classification, country of origin, and eligibility of the United States-Mexico Canada Agreement (USMCA) of an LED module from Canada Dear Mr. Casey: This is in response to your letter dated April 20, 2022, on behalf of Colorbeam Northamerica Inc., requesting a classification, United States-Mexico-Canada Agreement (USMCA) eligibility for preferential treatment, country of origin determination for marking purposes and Section 301 applicability for an LED module. The merchandise under consideration is identified as the LED Bulb Assembly. The LED Bulb Assembly, which is an LED module, consists of an arrangement of Light Emitting Diodes (COB’s), an aluminum heat sink, diffuser lens and an aluminum housing. It is stated that the assembly does not contain an LED driver or power control switches. It is also stated that there are no smartcards in the LED bulb assembly. The LED Bulb Assembly is used in conjunction with the centrally located Gateway Controller and will be installed onto the housing fitting (“can”, which is preinstalled on the ceiling) as light source of the ceiling lighting fixture. A decorative “rim” fitting will be then installed onto the “can” to form a complete ceiling fixture. The housing fitting/“can” and the decorative “rim” are not shipped together with the LED Bulb Assembly. The applicable subheading for the LED Bulb Assembly will be 8539.51.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical filament or discharge lamps, including sealed beam lamp units and ultraviolet or infrared lamps; arc lamps; light-emitting diode (LED) light sources; parts thereof: Light-emitting diode (LED) light sources: Light-emitting diode (LED) modules”. The rate of duty will be free. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8539.51.0000, HTSUS, unless specifically excluded, are subject to an additional 25% ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8539.51.0000, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively. Regarding the LED module’s eligibility for preferential treatment, the USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018, and approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act. 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 – (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)); … The subject module contains non-originating materials and is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i). Moreover, under GN 11(b)(ii), the module is not a good produced entirely in Canada exclusively from originating materials. Therefore, we must next determine whether the non-originating materials undergo the tariff shift and other requirements provided for in GN 11(b)(iii) and GN 11(o). A detailed review shows that no product specific rule exists for the noted classification in subheading 8539.51.00. We note that the following is found on page 2 of the General Notes of the HTSUS: Compiler’s Note: …Other agreements, including the new United States-Mexico-Canada Free Trade Agreement, are set forth in terms of HS 2012 and may not contain current tariff numbers. However, the rules for the North American Free Trade Agreement [expired; retained for reference through June 30, 2021], the United States-Australia Free Trade Agreement, the United States-Chile Free Trade Agreement, the United States-Bahrain Free Trade Agreement, and the United States-Korea Free Trade Agreement have been updated, and the pertinent general notes do reflect proclaimed rectifications through 2007 or 2012, depending on the agreement… Further, CSMS message 17-000270 entitled “FTA Origination Analysis and Certification when no Tariff Change Rule (TCR)” states that “tariff-shift origination analysis should classify the good and its materials using the most recent HTSUS in which the tariff item has a corresponding TCR and perform the origination analysis using that year’s HTSUS.” Per the above, we found that the corresponding subheading for the subject LED modules enumerated within the 2012 HTSUS would be 8543.70, HTSUS. As such, we look to the applicable tariff shift rule for merchandise classifiable under subheading 8543.70, HTSUS, in GN 11(o), HTSUS, which provides, in relevant part: A change to subheading 8543.70 from any other subheading, except from “smart” cards, other than those containing a single integrated circuit, of subheading 8523.59. Based upon the information provided, all non-originating parts included in the manufacture of the finished module are classified outside of subheading 8543.70, HTSUS. As such, the finished modules are considered originating goods under the USMCA and eligible for preferential treatment. 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 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 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. Pursuant to 19 C.F.R Section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. Applied in sequential order, the required hierarchy establishes 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 ex

and Certification when no Tariff Change Rule (TCR)” states that “tariff-shift origination analysis should classify the good and its materials using the most recent HTSUS in which the tariff item has a corresponding TCR and perform the origination analysis using that year’s HTSUS.” Per the above, we found that the corresponding subheading for the subject LED modules enumerated within the 2012 HTSUS would be 8543.70, HTSUS. As such, we look to the applicable tariff shift rule for merchandise classifiable under subheading 8543.70, HTSUS, in GN 11(o), HTSUS, which provides, in relevant part:A change to subheading 8543.70 from any other subheading, except from “smart” cards, other than those containing a single integrated circuit, of subheading 8523.59.Based upon the information provided, all non-originating parts included in the manufacture of the finished module are classified outside of subheading 8543.70, HTSUS. As such, the finished modules are considered originating goods under the USMCA and eligible for preferential treatment.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 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 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.Pursuant to 19 C.F.R Section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marki