Plastic and Aluminum Hose Reels; USMCA

HQ H311942 August 6, 2020 OT:RR:CTF:VS H311942 EE CATEGORY: Classification Serge Beauchemin Garant GP 375 Chemin St-Francois West St-Francois, Quebec, G0R 3A0 Canada RE: Plastic and Aluminum Hose Reels; USMCA Dear Mr. Beauchemin: This is in response to your correspondence, dated June 16, 2020, in which you request a ruling concerning the eligibility of certain plastic and aluminum hose reels for duty-free treatment under the United States-Mexico-Canada Agreement. Your request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division for review. Our ruling is set forth below. FACTS: The merchandise are certain plastic and aluminum hose reels intended to be used around the home. Based on the information you submitted, the plastic hose reels are classified under subheading 3924.90.56, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “[t]ableware, kitchenware, other household articles and hygienic or toilet articles, of plastics: Other: Other.” The aluminum hose reels are classified under subheading, 7615.10.91, HTSUS, which provides for “[t]able, kitchen or other household articles and parts thereof, of aluminum; pot scourers and scouring or polishing pads, gloves and the like, of aluminum; sanitary ware and parts thereof, of aluminum: Table, kitchen or other household articles and parts thereof; pot scourers and scouring or polishing pads, gloves and the like: Other: Other.” You inquire whether the plastic and aluminum hose reels qualify for duty-free treatment under USMCA. You state that the hose reels are manufactured in Canada with the following non-originating components: -Aluminum water system (component # 503272) classified under subheading 7616.99, HTSUS; and -PVC connector hose, 5 foot (component #504492) classified under subheading 3917.39, HTSUS ISSUE: Whether the plastic hose reels classified under subheading 3924.90.56, HTSUS, and aluminum hose reels classified under subheading 7615.10.91, HTSUS, imported into the United States from Canada, are eligible for duty-free treatment under the United States-Mexico-Canada Agreement. LAW AND ANALYSIS: The United States-Mexico-Canada Agreement (“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 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— the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries; the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials; 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)); or … Since the plastic and aluminum hose reels contain non-originating materials, they are not considered goods wholly obtained or produced entirely in a USMCA country under GN 11(b)(i) and GN 11(b)(ii). We must next determine whether the plastic and aluminum hose reels qualify under GN 11(b)(iii). As previously noted, you state that the imported plastic hose reels are classified under subheading 3924.90.56, HTSUS. The applicable rule of origin for plastic hose reels classified under subheading 3924.90.56, HTSUS, is in GN 11(o)/39.2, HTSUS, which provides “[a] change to headings 3916 through 3926 from any other heading, including another heading within that group.” Since the two non-originating components, the aluminum water system, classified under subheading 7616.99, HTSUS, and the PVC connector hose classified under subheading 3917.39, HTSUS, are classified in a heading other than heading 3924, HTSUS, the tariff shift rule is met. Accordingly, the plastic hose reels classified under subheading 3924.90.56, HTSUS, qualify as USMCA originating goods. As previously noted, you state that the imported aluminum hose reels are classified under subheading 7615.10.91, HTSUS. The applicable rule of origin for aluminum hose reels classified under subheading 7615.10.91, HTSUS, are in GN 11(o)/76.11, HTSUS, which provides “[a] change to headings 7615 through 7616 from any other heading, including another heading within that group.” Since the two non-originating components, the aluminum water system, classified under subheading 7616.99, HTSUS, and the PVC connector hose classified under subheading 3917.39, HTSUS, are classified in a heading other than heading 7615, HTSUS, the tariff shift rule is met. Accordingly, the aluminum hose reels classified under subheading 7615.10.91, HTSUS, qualify as USMCA originating goods. HOLDING: Based on the information provided, the plastic hose reels classified under subheading 3924.90.56, HTSUS, and the aluminum hose reels classified under subheading 7615.10.91, HTSUS, are eligible for preferential tariff treatment under the USMCA. Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a Customs Service field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.” A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction. Sincerely, Monika R. Brenner, Chief Valuation and Special Programs Branch