Foam Mattress; USMCA

HQ H313167 October 27, 2020 OT:RR:CTF:VS H313167 EGJ CATEGORY: Classification Maria Gomez Bob Barker Company Inc. 7925 Purfoy Rd. Fuquay-Varina, NC 27526 RE: Foam Mattress; USMCA Dear Ms. Gomez: This is in response to your correspondence, dated August 11, 2020, in which you request a ruling concerning the eligibility of a foam mattress for duty-free treatment under the United States-Mexico-Canada Agreement. FACTS: The instant foam mattress measures 29” x 75” x 4.5”, and consists of a foam interior which is encased by a thermoplastic polyurethane (“TPU”) cover. The mattress also includes a vent, and its outermost cover is a fireproof fabric sock. You note that except for the TPU material, all of the components are sourced from countries which are parties to the United States-Mexico-Canada Agreement (“USMCA”). The TPU material is shipped to a facility in Mexico where it is cut and finished into the mattress cover. The other components are also assembled together in Mexico to form the finished foam mattress. You propose that the finished foam mattress should be classified under subheading 9404.21 of the Harmonized Tariff Schedule of the United States (“HTSUS”), which provides, in pertinent part, for “[A]rticles of bedding and similar furnishing (for example, mattresses, quilts …) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: Mattresses.” You also propose that the foreign TPU material is classified under subheading 5903.20, HTSUS, which provides for “Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902: With polyurethane.” ISSUE: Whether the foam mattress is 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 foam mattress contains non-originating materials, it is not considered a good 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 foam mattress qualifies under GN 11(b)(iii). It is undisputed that the finished foam mattress is classified under subheading 9404.21, HTSUS. See New York Ruling Letter (NY) NY L89047, dated December 13, 2005, and NY N007267, dated March 7, 2007 (foam mattresses classified under subheading 9404.21, HTSUS). The applicable rule of origin for foam mattresses classified under subheading 9404.21, HTSUS, is in GN 11(o)/94.6, HTSUS, which provides for “[a] change to subheadings 9404.10 through 9404.30 from any other chapter.” The only non-originating component is the TPU material, which is classified under subheading 5903.20, HTSUS. As the TPU material is classified in a different chapter than the finished mattress, the non-originating material meets the requisite tariff shift rule. Accordingly, the foam mattress classified under subheading 9404.21, HTSUS, qualifies as a USMCA originating good. HOLDING: Based on the information provided, the foam mattress is 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