N362083

N362083 June 25, 2026 CLA-2-31:OT:RR:NC:N3:136 CATEGORY: Origin; Trade Programs TARIFF NO.: 3105.59.0000 Erica Fritz GHY International 572 South 5th Street Pembina, ND 58271 RE: The country of origin and eligibility of PreCede Cereal under the United States-Mexico-Canada Agreement (USMCA) from Canada Dear Ms. Fritz: In your letter dated June 4, 2026, on behalf of your client, ATP Nutrition, Ltd., you requested a binding ruling on the country of origin and eligibility of PreCede Cereal under the United States-Mexico-Canada Agreement (USMCA). In your submission, you state that PreCede Cereal is a liquid fertilizer seed treatment formulated to enhance early crop development. It contains nitrogen, phosphate, micronutrients (zinc, manganese, boron), and biostimulants including a seaweed extract. The production process is described as follows: Production occurs entirely in Canada. The process includes charging water, adding acids, dissolving micronutrient salts, incorporating a seaweed extract (Kelpak), and blending additional inputs including borate, nickel chloride, urea, and a polymer stabilizer. The process involves controlled sequencing, high-shear mixing, dissolution verification, and quality control testing to produce a homogeneous, stable formulation. The raw materials originate from multiple countries, including Canada and non-USMCA countries. You submit that the processing in Canada constitutes a substantial transformation of the raw materials. You state that the production process in Canada constitutes more than simple blending. The individual inputs, which are industrial or intermediate materials, are transformed through controlled formulation into a distinct seed treatment product with a new name, character, and use. The functionality of the finished product depends on the precise interaction of its components, which do not independently provide the intended agronomic performance. Once processed, the materials lose their individual identity and cannot be practically separated, resulting in a new and commercially distinct product. The finished product is a specialized, commercially recognized seed treatment fertilizer not achievable through simple combination at the point of use. Classification In your submission, you suggest classification of the finished product in subheading 3105.20.0000. Harmonized Tariff Schedule of the United States (HTSUS); however, we have found that to be incorrect because based on the provided information, PreCede Cereal contains two of the three fertilizing elements, nitrogen and phosphorus, it does not contain potassium. The applicable subheading for PreCede Cereal imported in packages of a gross weight exceeding 10 kilograms will be 3105.59.0000, HTSUS, which provides for Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphorus and potassium; other fertilizers; goods of this chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg: Other mineral or chemical fertilizers containing the two fertilizing elements nitrogen and phosphorus: Other. The general rate of duty will be free. The 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/. This ruling does not address the applicability of any additional duties, taxes, fees, exactions and/or other charges, which may apply to the goods discussed herein. This includes, but is not limited to, tariffs and other duties as provided for in Subchapter III to Chapter 99, HTSUS. Thus, for example, in addition to the classification stated above, the merchandise covered by this ruling may also need to be reported with either the Chapter 99 provision under which an additional tariff applies or one of the Chapter 99 provisions covering exceptions to such tariffs. For further information to assist with the importation process, please refer to the frequently updated Cargo Systems Messaging Service (CSMS) messages at https://www.cbp.gov/trade/automated/cargo-systems-messaging-service and the Trade Remedies page at https://www.cbp.gov/trade/programs-administration/trade-remedies. Country of Origin and Marking 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 USMCA country, the marking rules set forth in part 102 of this chapter will determine the country of origin. 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. 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: (a)(1) The good is wholly obtained or produced; (a)(2) The good is produced exclusively from domestic materials; or (a)(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. Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case because the imported products are neither wholly obtained or produced or produced exclusively from “domestic” materials. 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). Pursuant to 19 C.F.R. §102.11(a)(3), the country of origin of a good is the country in which each foreign material incorporated in that good undergoes an applicable change in tariff classification as set forth in 19 C.F.R. §102.20, and satisfies any other applicable requirements of that section. You have asked if one of the non-originating inputs, Kelpak, is considered a fertilizer of subheading 3105.20, HTSUS. Kelpak is a seaweed-based biostimulant and plant supplement; however, it does not contain the required level of essential elements to be classified as a fertilizer of Chapter 31, HTSUS. The subject PreCede Cereal will be imported into the U.S. from Canada and is classified in subheading 3105.90, HTSUS. The change in tariff classification must be made in accordance with section 102.20(f), Section VI: Chapter 31, which requires “A change to subheadings 3101.00 through 3105.90 from any other good within these subheadings or any other subheading, including another subheading within that group.” The subject product is produced in Canada with raw materials, from Canada, China, South Africa, Turkey, Tiawan, and Austria. Upon importation into the U.S., the subject product is classified in subheading 3105.59, HTSUS. As such, since all the raw materials used in making these products in Canada are classified in subheadings other than 3105.59, the applicable tariff shift rule for 19 CF

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). Pursuant to 19 C.F.R. §102.11(a)(3), the country of origin of a good is the country in which each foreign material incorporated in that good undergoes an applicable change in tariff classification as set forth in 19 C.F.R. §102.20, and satisfies any other applicable requirements of that section. You have asked if one of the non-originating inputs, Kelpak, is considered a fertilizer of subheading 3105.20, HTSUS. Kelpak is a seaweed-based biostimulant and plant supplement; however, it does not contain the required level of essential elements to be classified as a fertilizer of Chapter 31, HTSUS. The subject PreCede Cereal will be imported into the U.S. from Canada and is classified in subheading 3105.90, HTSUS. The change in tariff classification must be made in accordance with section 102.20(f), Section VI: Chapter 31, which requires “A change to subheadings 3101.00 through 3105.90 from any other good within these subheadings or any other subheading, including another subheading within that group.” The subject product is produced in Canada with raw materials, from Canada, China, South Africa, Turkey, Tiawan, and Austria. Upon importation into the U.S., the subject product is classified in subheading 3105.59, HTSUS. As such, since all the raw materials used in making these products in Canada are classified in subheadings other than 3105.59, the applicable tariff shift rule for 19 CFR 102.20 is satisfied, and therefore the country of origin for duty and marking purposes is Canada. 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 of the HTSUS implements the USMCA. GN 11(b) sets forth the criter