Country of Origin of a “Code in Box” Video Game

H349670 October 15, 2025 OT:RR:CTF:VS H349670 RMC CATEGORY: Origin Ms. Mireille Ahoton Ubisoft EMEA 625 Third St., 3rd Floor San Francisco, CA 94107 Re: Country of Origin of a “Code in Box” Video Game Dear Ms. Ahoton: This is in response to your correspondence of June 12, 2025, in which you ask U.S. Customs and Border Protection (“CBP”) to address the country of origin for marking purposes of a “code in box” video game imported from Mexico. Your request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division for response. FACTS: Ubisoft creates video games such as “Just Dance 2024 Edition,” the good at issue in this ruling request. Ubisoft describes the good as a “code in box.” In other words, the good consists of retail packaging that contains a paper insert with a scannable code allowing the customer, after purchase, to download the video game onto a Nintendo Switch device. You describe the production process as follows. First, Ubisoft purchases the scannable codes from Nintendo of America. It then sends the codes to a supplier in the United States, which prints the codes on an insert that will be placed in the retail packaging. The supplier also prints a cover sheet for the retail packaging and a leaflet with information about customer service and warranty aspects of the product. The paper products are then shipped to Mexico, where workers place them in a Canadian plastic retail packaging case, wrap them, and pack them in cartons for shipment to the United States. 1 The following materials are used in the production of the good1: Name Classification Quantity Origin Coversheet 4901.10 1 United States Inserts 4901.10 2 United States Plastic Case 3923.10 1 Canada When imported into the United States, the good will be classified in subheading 4901.10.00, HTSUS, which provides for “[p]rinted books, brochures, leaflets and similar matter, whether or not in single sheets: In single sheets, whether or not folded.”2 You have specified that your request “is made to ensure compliance with the marking requirements under 19 C.F.R. Part 102.” ISSUES: What is the country of origin for marking purposes of the “code in box” video game when imported into the United States from Mexico? LAW AND ANALYSIS: Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304), provides that unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such a manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. § 1304 was that the ultimate purchaser should be able to know by an inspection of the markings on the imported goods the country of which the good is the product. “The evident purpose is to mark the goods so at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940). Part 134, CBP Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b) defines “country of origin” 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 1 The bill of materials provided lists the classification of the coversheet and inserts as 4911.10, HTSUS. However, upon review, the correct classification is 4901.10, HTSUS. The Explanatory Notes (“ENs”), although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). In this circumstance, EN 49.01 explains that heading 4901, HTSUS, includes “covers virtually all publications and printed reading matter, illustrated or not, with the exception of publicity matter and products more specifically covered by other headings of the Chapter.” Here, the coversheet and inserts consist of sheets of printed material. Besides the code, the reading matter appearing on the insert is generally necessary to allow the consumer to activate the downloadable game. As such, it does not exclusively contain publicity matter, and no other heading of Chapter 49 more specifically describes the merchandise. The coversheet and inserts are therefore correctly classified under heading 4901, HTSUS, and specifically under subheading 4901.10.00, HTSUS. 2 In your submission, you claim that the goods will be imported under subheading 9504.50.00, HTSUS, which provides for “[v]ideo game consoles and machines . . . .” The good, however, is neither a game console nor a machine. Based on its condition as imported, the good is properly classifiable in subheading 4901.10.00, HTSUS. 2 substantial transformation in order to render such other country the ‘country of origin’ within the meaning of [the marking laws and regulations].” 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 hierarchy for determining the country of origin of a good for marking purposes. See 19 C.F.R. § 102.11(a). Since the goods will be imported from Mexico, section 102 will govern the determination of whether the goods are products of Mexico. Section 102.11(a) provides a hierarchy for determining the country of origin of a good for marking purposes. Applied in sequential order, the hierarchy establishes 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 applicable requirements of these rules are satisfied. “Domestic material” is defined in 19 C.F.R. § 102.1(d), as “a material whose country of origin as determined under these rules is the same country as the country in which the good is produced.” “Foreign material” is defined in 19 C.F.R. § 102.1(e) as “a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.” Here, sections 102.11(a)(1) and 102.11(a)(2) do not apply because the product will neither be wholly obtained or produced nor produced exclusively from “domestic” (Mexican, in this case) materials. Accordingly, under section 102.11(a)(3), each non-Mexican material must meet the applicable change in tariff classification set out in Section 102.20 in order for the product to qualify to be marked as a product of Mexico. The applicable rule of origin in Section 102.20 for goods of subheading 4901.10.00, HTSUS, requires “[a] change to heading 4901 through 4908 from any other heading, including another heading within that group.” Here, since the coversheet and inserts are also classified under heading 4901, HTSUS, the tariff shift requirement is not met. The analysis must therefore proceed to paragraph (b) of 19 C.F.R. § 102.11, which provides that: (b) Except for a good that is specifically described in the Harmonized System as a set, or is classified as a set pursuant to General Rule of Interpretation 3, where the country of origin cannot be determined under paragraph (a) of this section: (1) The country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good, or 3 (2) If the material that imparts the essential character to the good is fungible, has been commingled, and direct physical identification of the origin of the commingled material is not practical, the country or countries of origin may be determined on the basis of an inventory management method. 19 C.F.R. § 102.18(b)(1) establishes that: For purposes of identifying the material that imparts the essential character to a good under § 102.11, the only materials that shall be taken into consideration are those domestic or foreign materials that are classified in a tariff provision from which a change in tariff classification is not allowed under the § 102.20 specific rule or other requirements applicable to the good. When determining the essential character of a good under 19 C.F.R. § 102.11, 19 C.F.R. § 102.18(b)(1) provides that only domestic and foreign materials that are classified in a tariff provision from which a change in tariff classification is not allowed under the § 102.20 specific rule or other requirements applicable to the good shall be taken into consideration. Here, the inserts and coversheet do not undergo the applicable tariff shift. Section 102.18(b)(2) provides that: For purposes of determining which one of two or more materials described in paragraph (b)(1) of this section imparts the essential character to a good under § 102.11, various factors may be examined depending upon the type of good involved. These factors include, but are not limited to, the following: (i) The nature of each material, such as its bulk, quantity, weight or value; and (ii) The role of each material in relation to the use of the good. Of the materials that do not undergo the applicable tariff shift requirement, the insert with the printed code provides the good with its essential character. This material plays the most significant role in the ultimate use of the good, which is to provide access to the video game. Accordingly, because the material that imparts the essential character to the good is of U.S. origin, pursuant to section 102.11(b)(1), the country of origin of the imported good is the United States for marking purposes. Please note that if you wish to mark the goods or the packaging to indicate that they are “Made in the USA,” the marking must comply with the requirements of the Federal Trade Commission (“FTC”). We suggest that you direct any questions on this issue to the FTC. 4 HOLDING: The country of origin for marking purposes of the “code in box” video game is the United States. Sincerely, Monika Brenner, Branch Chief Valuation & Special Programs Branch 5