N352844

N352844 September 24, 2025 CLA-2-13:OT:RR:NC:N5:231 CATEGORY: Classification; Origin TARIFF NO.: 1302.32.0020; 9903.01.24; 9903.01.25 Alfredo Arenas Polymerals Inc. 84 NE Loop 410 Suite No. 252 San Antonio, TX 78216 RE: The tariff classification, country of origin, and eligibility under the United States-Mexico-Canada Agreement (USMCA) for HydroSystem 102P Dear Mr. Arenas: In your letter dated August 25, 2025, you requested a ruling on the tariff classification, country of origin, and eligibility under the USMCA of HydroSystem 102P. The product is described as a white to beige, free-flowing powder with a neutral taste and odor, marketed as a synergistic hydrocolloid system that provides high viscosity, thickening, and stabilizing properties. HydroSystem 102P is composed of 80 percent guar gum and 20 percent xanthan gum. The guar gum is produced in Mexico, while the xanthan gum is sourced from China. The product will be imported into 50-pound kraft paper bags and is intended for use as a versatile thickener and stabilizer in soups, sauces, dressings, baked goods, and dairy products. Classification The merchandise under review is a composite good comprised of different materials that are classifiable in different headings. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs) taken in order. GRI 3(b) provides, in relevant part, that composite goods which cannot be classified by reference to GRI 3(a) shall be classified as if they consisted of the material or component that gives them their essential character. Guar gum predominates by weight and by function, providing the primary thickening and stabilizing properties of the blend. Guar gum is specifically named in subheading 1302.32, HTSUS, which provides for mucilages and thickeners, whether or not modified, derived from locust beans, locust bean seeds or guar seeds. Xanthan gum, which if imported separately would fall under heading 3913, HTSUS, does not overcome the essential character of the mixture. The applicable subheading for the HydroSystem 102P will be 1302.32.0020, HTSUS, which provides for Mucilages and thickeners, whether or not modified, derived from locust beans, locust bean seeds or guar seeds: Guar. The general rate of duty will be Free. Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 1302.32.0020, HTSUS, listed above. Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time, products of China, Hong Kong, and Macau will be subject to an additional ad valorem rate of duty of 10 percent. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading 1302.32.0020, 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. The tariffs and additional duties cited above are current as of this ruling’s issuance. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/. Country of Origin When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) 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). The “country of origin” is defined in 19 CFR 134.1(b) 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 in order to render such other country the “country of origin” within the meaning of this part; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin.” 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 §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, 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: (a) 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 section 102.20 and satisfies any other applicable requirements of that section, and all other requirements of these rules are satisfied. The subject merchandise is neither “wholly obtained or produced” nor “produced exclusively from domestic materials.” Therefore, Sections 102.11(a)(1) and (a)(2) do not apply to the facts presented in this case. Because the analysis of sections 102.11(a)(1) and 102.11(a)(2) does not yield a country of origin determination, we look to section 102.11(a)(3). The subject merchandise is classified under subheading 1302.32.0020, HTSUS, The applicable tariff shift requirement in Part 102.20 for the subject merchandise of subheading 1302.32, HTSUS, states: A change to subheadings 1302.11 through 1302.32 from any other chapter, except from concentrates of poppy straw of subheading 2939.11. In this case, the non-originating xanthan gum of Chinese origin is classifiable in heading 3913 prior to processing. When combined with the Mexican guar gum, the finished product is classified in heading 1302.32. Because the xanthan gum undergoes a tariff shift from Chapter 39 to heading 1302.32, the rule of origin is satisfied. The exception noted in the rule is not implicated. Therefore, under the tariff shift provisions, the country of origin of HydroSystem 102P is Mexico. On this basis, the product qualifies as an originating good under the United States-Mexico-Canada Agreement (USMCA), provided that all other applicable requirements are met. 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. Co

is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) 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). The “country of origin” is defined in 19 CFR 134.1(b) 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 in order to render such other country the “country of origin” within the meaning of this part; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin.” 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 §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, 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: (a) 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