N350508

N350508 July 16, 2025 OT:RR:NC:N2:212 CATEGORY: Classification; Origin; Marking; Trade Programs TARIFF NO.: 8536.30.8000 Angeliky Colokuris Escoto Customs Brokers Inc. 9540 Joe Rodriguez, STE 100 El Paso, TX 79927 RE: The classification, country of origin, marking, and eligibility under the United States-Mexico-Canada Agreement (USMCA) of a surge protection device Dear Ms. Colokuris: In your letter dated June 23, 2025, you requested a ruling on the classification, country of origin, and eligibility under the United States-Mexico-Canada Agreement (USMCA), on behalf of your client Mersen USA EP Corp. The merchandise under consideration is identified as the Thermally Protected Metal Oxide Varistor (TPMOV), part number 150TPMOVSL, and is described as a surge protection device used in voltage suppression. The subject device consists of a variable resistor, or varistor, element with electrical terminals and a thermal switch encased within a molded plastic enclosure. The subject device has a voltage rating of 150 VAC. In use, the TPMOV is placed within an electrical system, such as industrial automation, home electronics, energy conversion, etc., in order to protect the systems from an unexpected power surge. A surge in power will overheat the varistor causing the thermal switch to stop the flow of electricity. You described the assembly and manufacturing process for the subject device as occurring in Mexico. In Mexico, the U.S.-originating thermal switch is installed within the molded plastic base cover, which originates in Mexico. A Chinese-origin varistor is then placed within the base and electrical contacts of U.S. and Mexican origin are attached. The remainder of the molded case, originating in the U.S. and Mexico, is then assembled before the finished device is labelled and packaged for shipment to the U.S. You state that the product and its packaging are both marked “Assy in Mexico,” because the assembly process occurs in Mexico. Classification: In your request, you suggest that the correct classification for the subject surge protection device is subheading 8536.30, Harmonized Tariff Schedule of the United States (HTSUS). We agree. The applicable subheading for the TPMOV, part number 150TPMOVSL, will be 8536.30.8000, HTSUS, which provides for “Electrical apparatus for switching or protecting electrical circuits…for a voltage not exceeding 1,000V: Other apparatus for protecting electrical circuits: Other.” The general rate of duty will be free. Country of Origin: When determining the country of origin for purposes of applying current trade remedies under Section 301 and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). Regarding the origin of the subject protection device for trade remedy purposes, it is the opinion of this office that the Chinese-origin varistor imparts the character of the finished article as it provides the essential electrical function. Further, the processes performed in Mexico are simple in nature and do not substantially transform the varistor into a new and different article of commerce. The country of origin for trade remedy purposes of the TPMOV, part number 150TPMOVSL, will be China. 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 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. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940). Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation to render such other country the “country of origin” within the meaning of the marking laws and regulations. Pursuant to 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 sections 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, apart from textile and apparel goods which are subject to the provisions of 19 CFR 102.21. See 19 CFR 102.11. Applied in sequential order, 19 CFR 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 Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. Since the subject merchandise is neither “wholly obtained or produced” nor “produced exclusively from domestic materials”, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the cable, and paragraph (a)(3) must be applied to determine the origin of the finished article. As the subject cable, as noted above, is classified under 8536.30, HTSUS, the applicable tariff shift requirement in Part 102.20 states: A change to any other good of subheading 8536.10 through 8536.90 from any other subheading, including another subheading within that group. Based upon the information provided, all foreign components, including the Chinese varistor, which is classified under heading 8533, HTSUS, fall outside of the parameters set forth above. As such, the tariff shift rule is satisfied. The country of origin for marking purposes for the TPMOV, part number 150TPMOVSL, will be Mexico. In your ruling request, you also stated that the product and its packaging are marked “Assy in Mexico,” because the assembly process occurs in Mexico. In this regard, Section 134.43 (e), CBP Regulations (19 CFR 134.43(e)), provides: Where an article is produced as a result of an assembly operation and the country of origin of such article is determined under this chapter to be the country in which the article was finally assembled, such article may be marked, as appropriate, in a manner such as the following: (emphasis added) (1) Assembled in (country of final assembly); (2) Assembled in (country of final assembly) from components of (name of country or countries of origin of all components); or (3) Made in, or product of, (country of final assembly). Consistent with 19 CFR 134.43(1), we find that the marking “Assembled in Mexico” is appropriate as long as it is legibly, conspicuously, and permanently applied to 

is applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). Regarding the origin of the subject protection device for trade remedy purposes, it is the opinion of this office that the Chinese-origin varistor imparts the character of the finished article as it provides the essential electrical function. Further, the processes performed in Mexico are simple in nature and do not substantially transform the varistor into a new and different article of commerce. The country of origin for trade remedy purposes of the TPMOV, part number 150TPMOVSL, will be China. 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 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. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940). S