USMCA Eligibility of Oil Seal and Tapered Roller Bearing Cone Assembly

H343975 November 13, 2025 OT:RR:CTF:VS H343975 AMW CATEGORY: Origin James Allan Amsted Industries/Consolidated Metco 5701 SE Columbia Way Vancouver, WA 98661 RE: USMCA Eligibility of Oil Seal and Tapered Roller Bearing Cone Assembly Dear Mr. Allan: This is in response to your submission, dated November 7, 2024, regarding an oil seal and tapered roller bearing cone assembly, requesting a tariff classification ruling, country of origin determination for marking purposes and for purposes of applying trade remedies under Section 301(b) of the Trade Act of 1974, and the applicability of the United States-Mexico- Canada Agreement (“USMCA”). In New York Ruling (“NY”) N343893, dated December 4, 2024, U.S. Customs and Border Protection’s (“CBP’s”) National Commodity Specialist Division (“NCSD”) provided a ruling with respect to the tariff classification, country of origin for marking, and country of origin for the applicability of Section 301 duties. The remaining issue, the merchandise’s eligibility for preferential treatment under the USMCA, was forwarded for our review. FACTS: The following facts are based on your November 7, 2024, ruling request as well as follow-up information provided to the NCSD, including a meeting conducted on November 15, 2024. The article under consideration is an “Oil Seal and Tapered Roller Bearing Cone Assembly (Part Number 20009899),” designed to be used with motor vehicles. This item consists of an automotive rubber, donut-shaped oil seal, and a tapered roller bearing cone of steel. You note that no tapered roller bearing cup, which is a necessary component for the bearing cone to function correctly, is imported with this assembly. The bearing cone is therefore not capable of effectively reducing friction at the time of importation without the corresponding bearing cup. In NY N343893, the NCSD determined the applicable classification to be 8708.99.81, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for: “Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other: Other: Other.” You represented to the NCSD that the two main subassemblies, the oil seal and bearing cone, will be manufactured in Taiwan and India, respectively. In Taiwan, the oil seal will be produced using locally sourced and imported raw materials, including sheet steel, steel rods, and vulcanized rubber. In India, the bearing cones are manufactured and subject to finish grinding, polishing, and heat treatment, and assembly. You further state that the Taiwanese-origin oil seal and Indian-origin bearing cone will be assembled together in either Taiwan, China, or Mexico. The assembly process involves permanently joining the oil seal to the bearing cone. The oil seal and bearing cone are placed on corresponding specialized assembly tools, and with the bearing cone stationary, the oil seal is pressed onto the bearing cone with a significant force, beyond 1,000 ft. pounds, achieving a permanent connection. For those items produced in Mexico, you describe the following process: ConMet Mexico will receive the completed oil seal from the Taiwanese oil seal producer and the bearing cone from India, and both will be placed into its Mexico inventory warehouse. The Taiwan oil seal and the India bearing cone will be assembled together in Mexico, creating part number 20009899. After production, the finished products will be imported into the United States directly from Mexico. ISSUE: Whether the subject oil seal and tapered roller bearing cone assemblies are eligible for preferential tariff treatment under the USMCA when imported from Mexico into the United States. LAW & ANALYSIS: 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(a)(i) provides: Goods that originate in the territory of Mexico, Canada or the United States (hereinafter referred to as “USMCA country” or “USMCA countries” as further defined in subdivision (l)(xxiv) of this note) under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury (including Uniform Regulations provided for in the USMCA), and goods enumerated in subdivision (p) of this note, when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn, followed by the symbol “S” in parentheses, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act; and . . . 2 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— (i) the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries; (ii) the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials; (iii) 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 … When, as here, the imported merchandise contains nonoriginating materials, they are not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i), nor are the goods produced exclusively from originating materials per GN 11(b)(ii). Thus, we must determine whether the goods qualify under GN 11(b)(iii). To qualify for preferential tariff treatment under GN 11(b)(iii), a good must meet a product specific rule of origin, which often includes a regional value content (“RVC”). As outlined above, the subject merchandise is classified under 8708.99.81, HTSUS, which provides for: “Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories….” The applicable rule of origin for goods classified under this subheading is in GN 11(o)/ 87.53(A)-(B), HTSUS, which relates to “any other good of 8708.99…for use in a passenger vehicle or light truck.” The provision is underscored and requires: 53. (A) A change to subheading 8708.99 from any other heading; or: (B) No change in tariff classification to a good of subheading 8708.99, provided there is a regional value content of not less than 70 percent under the net cost method The applicable subheading rule provides, ‘[t]he underscoring of the designations in subdivisions 50 through 55 pertain to goods provided for in heading 8708.99. If the good is a 3 chassis frame for use in a passenger vehicle or light truck, Articles 3.2 and 3.3 of the automotive appendix apply. If the good is a chassis for use in a heavy truck, Articles 4.2 and 4.4 of the automotive appendix apply. If the good is any other good for use in a passenger vehicle or light truck, Article 3.4 of the automotive appendix applies….” Here, because the product-specific rule is underscored and the merchandise is “any other good for use in a passenger vehicle or light truck”, Article 3.4 of the automotive appendix applies, which states: 4. Notwithstanding Article 2 (Product-Specific Rules of Origin for Vehicles) and the Product-Specific Rules of Origin in Annex 4-B, each Party shall provide that the regional value content requirement for a part listed in Table B of this Appendix that is for use in a passenger vehicle or light truck is: (a) … (d) 70 percent under the net cost method or 80 percent under the transaction value method, if the corresponding rule includes a transaction value method, beginning on January 1, 2023 or three years after the date of entry into force of this Agreement, whichever is later, and thereafter. Notwithstanding any regional value content requirement in this paragraph, a part listed in Table B is originating if it meets the applicable change in tariff classification requirement provided in Article 4-B. We note that the subject merchandise is listed in Table B of the Automotive Appendix, which provides for 8708.99, “Other parts and accessories of motor vehicles of headings 87.01 to 87.05 (excluding chassis frames).” Based on the language outlined in article 3.4(d) of the automotive appendix, as well as GN 11(o)/ 87.53(A)-(B), the subject merchandise will therefore qualify for preferential treatment under the USMCA where it (a) undergoes a change to subheading 8708.99 from any other heading; or (b) has a regional value content of not less than 70 percent under the net cost method. In the present matter, the NCSD in NY N343893 noted that heading 8482, HTSUS, provides for tapered roller bearings, and headings 3926, 4016, and 8484, HTSUS, provide for plastic, rubber, and mechanical seals, respectively. Accordingly, both subassemblies, the tapered roller bearing and the oil seal, will undergo a change to subheading 8708.99, HTSUS, from different headings. As a result, the subject oil seal and tapered roller bearing cone assembly meets the tariff shift requirement under GN 11(o)/ 87.53(A) and is eligible for preferential tariff treatment under the USMCA. Accordingly, it is unnecessary to analyze whether the subject assemblies satisfy the relevant regional value content requirement. HOLDING: Based on the information provided, the imported oil seal and tapered roller bearing cone assembly units are eligible for preferential tariff treatment under the USMCA. 4 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 [CBP] 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 Brenner, Chief Valuation and Special Programs Branch 5