Country of Origin Marking; USMCA; Unassembled Cargo Container

H350291 July 16, 2026 OT:RR:CTF:VS H350291 JH CATEGORY: Origin Jae Chung President QS Customs Brokers, Inc. 2020 Piper Ranch Rd, San Diego, CA 92154-0000 RE: Country of Origin Marking; USMCA; Unassembled Cargo Container Dear Mr. Chung: This is in response to your July 10, 2025 ruling request, filed on behalf of Hyundai Translead San Diego (or “importer”), regarding the classification, eligibility for preferential tariff treatment under the United States-Mexico-Canada Agreement (“USMCA”), and country of origin marking of the Hyundai unassembled cargo container. FACTS: In Headquarters Ruling Letter (HQ) H341684, issued to you on July 10, 2025, the USMCA eligibility, country of origin marking, and classification for the same cargo container was addressed. However, for this ruling, the importer is producing an unassembled version of the same cargo container for use with heavy trucks. The unassembled cargo container is to be sold as an aftermarket part for heavy trucks. The components of the unassembled cargo container are produced in Mexico (Tijuana and Rosarito), and are shipped to the United States to be later assembled in the U.S. The unassembled cargo container consists of the following components: • Front Wall Assembly, • Top Rail, • Bottom Rail, • Rear Frame Assembly and Installation, • Side Wall Assemblies, • Floor Assembly, • Roof Assembly & Installation, 2 • Rear Door Installation, and • Electrical Harness. In Mexico, side composite panels and side posts are put together with the rail attachments (top and bottom rail) to make the side wall assemblies. The rail attachments are stated to be a product of the U.S., and the side posts are either a product of Mexico or the U.S. The side composite panels are a product of Mexico, and the same material is used for the front wall. For the roof assembly, the roof is rolled onto the cargo container with the assistance of the roof bows that are drilled onto the side top rails. Both the roof and the roof bows are products of the U.S. For the rear frame assembly, the frame is secured onto the floor and base assembly. The rear frame is predominantly made up of non-USMCA material. The rear door that is secured onto the rear frame is a product of the U.S. For the floor assembly, the upper coupler, crossmembers, and rear threshold plate are assembled onto a wood floor. The wood floor and crossmembers are a product of the U.S., while the rear threshold and upper coupler are a product of Mexico. For the electrical harness, it is secured and attached onto the bottom of the cargo container and made ready to connect necessary electrical components to the cargo container. The electrical harness contains U.S. and Mexican components. All of the nonoriginating materials used in the production of the components are stated to be classifiable outside of heading 8707. Along with the parts for the unassembled cargo container, additional hardware (also originating from USMCA and non-USMCA countries) consisting of washers, nuts, bolt brackets, mud flap bracket/retainers, mud flaps, HH bolts, H lock nuts, washer fenders, space fillers, and the rear bumper assembly are shipped to be used for the truck body assembly. The unassembled cargo container and the additional hardware are shipped to authorized dealers in the U.S. (California, Texas, Michigan, Georgia, Utah, Illinois, Pennsylvania) who will assemble the cargo container, and then assemble the cargo container onto the truck body assembly for use in heavy trucks. ISSUES: What is the tariff classification of the unassembled cargo container? What is the country of origin for marking purposes of the unassembled cargo container? Whether the unassembled cargo container is eligible for USCMA preferential tariff treatment? 3 LAW AND ANALYSIS: Classification Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that classification shall be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may be applied in order. GRI 2(a) provides as follows: Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled. The Explanatory Notes of the Harmonized Commodity Description Coding System (“ENs”) constitute the official interpretation of the Harmonized System. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). EN 87.07 states, in relevant parts that “[t]his heading covers bodies (including cabs) for the motor vehicles of headings 87.01 to 87.05.” The unassembled cargo container is eo nomine classified under heading 8707, HTSUS, which provides for “[b]odies (including cabs), for the motor vehicles of headings 8701 to 8705” by application of GRI 1 if entered as a complete good or by application of GRI 2(a) if entered as an unassembled kit. Given the cargo container will be used in vehicles for the transport of goods of heading 8704, HTSUS, the unassembled cargo container is classifiable by application of GRI 6 under subheading 8707.90.50, HTSUS, which provides, in relevant part, for “other bodies for vehicles of heading 8704.” Country of Origin Marking 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 cargo 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 cargo 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 4 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. 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. Title 19, C.F.R. § 102.11(a) provides that 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 § 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. “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, 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. Pursuant to 19 CFR 102.11(a)(3), the country of origin of a good is the country where each foreign material incorporated in that good undergoes an applicable change in tariff classification as set forth in 19 CFR 102.20, which sets forth the specific tariff classification changes and/or other operations that are specifically required to occur in order for country of origin to be determined on the basis of operations performed on the foreign materials contained in a good. As previously indicated, the unassembled cargo container is classifiable under subheading 8707.90.50, HTSUS. The relevant tariff shift requirement in Part 102.20 for the cargo container requires: 8707-8708 A change to heading 8707 from any other heading, except from subheading 8708.29 when that change is pursuant to General Rule of Interpretation 2(a) Here, although the cargo container is imported unassembled, the components of the cargo container are not imported into Mexico in an assembled state, but are themselves produced in Mexico. We are informed by the bill of materials that the materials are classifiable outside of heading 8707, HTSUS and subheading 8708.29, HTSUS. Therefore, the requisite tariff shift will be met and the unassembled cargo 5 container will be a product of Mexico for country of origin marking. Because the marking statute only requires articles of foreign origin to be marked with their country of origin, the unassembled cargo container may be marked with the country of origin Mexico. Eligibility for Preferential Tariff Treatment under USCMA 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)). GN 11 of the HTSUS implements the USMCA. GN 11(a) provides: (i) 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 (ii) Goods that originate in the territory of a USMCA country under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury, 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, or under a subheading whose article description provides for originating goods of one or more USMCA countries, as the case may be, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act. 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— 6 (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 (iv) except for a good provided for in any of chapters 61 through 63— (A) the good is produced entirely in the territory of one or more USMCA countries; (B) one or more of the nonoriginating materials provided for as parts under the tariff schedule and used in the production of the good do not satisfy the requirements set forth in this note because— (1) both the good and its materials are classified under the same subheading or under the same heading that is not further subdivided into subheadings; or (2) the good was imported into the territory of a USMCA country in unassembled form or disassembled form but was classified as an assembled good pursuant to general rule of interpretation 2(a) of the tariff schedule, and (C) the regional value content of the good, determined in accordance with subdivision (c) of this note, is not less than 60 percent if the transaction value method is used, or not less than 50 percent if the net cost method is used and such good satisfies all other applicable provisions of this note. … (c) [Format adjusted for alignment.] (i) Regional value content. -- Except as provided in subdivision (c)(v) of this note, the regional value content of a good shall be calculated, at the choice of the importer, exporter or producer of such good, on the basis of— (A) the transaction value method set out in subdivision (c)(ii) or (B) the net cost method set out in subdivision (c)(iii). 7 (ii) Transaction value method. --- An importer, exporter or producer of a good may calculate the regional value content of the good on the basis of the following transaction value method: RVC = ((TV-VNM)/TV) X 100 where RVC means the regional value content of the good, expressed as a percentage; TV means the transaction value of the good adjusted to exclude any costs incurred in the international shipment of the good; and VNM means the value of nonoriginating materials, including materials of undetermined origin, used by the producer in the production of the good…. The merchandise imported into the United States will qualify for preferential tariff treatment under USMCA if it meets one of the origin criteria enumerated in GN 11(b). Here, the subject unassembled container contains nonoriginating materials. As such they are not considered goods wholly obtained or produced in a USMCA country under GN 11(b)(i), nor are they goods produced exclusively from originating materials per GN11(b)(ii). Thus, we must determine whether the goods qualify under GN 11(b)(iii). As noted above, the classification of the unassembled cargo container at issue that are intended to be used for heavy trucks falls within subheading 8707.90.50, HTSUS. GN 11(o)/87.18, provides the following product-specific rule of origin for these goods: (A) A change to heading 8707 from any other chapter, or (B) A change to heading 8707 from heading 8708, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than 70 percent under the net cost method Since none of the material used in the production of the unassembled cargo container are classified in heading 8707, the conditions for A are met, and we look to heading rule 8707 which states: The underscoring of the designations in subdivisions 14 through 16 pertain to goods provided for in heading 8706. If the good is for use in a passenger vehicle or light truck, Articles 3.2 and 3.3 of the automotive appendix apply. If the good is for use in a heavy truck, Article 4.2 of the automotive appendix applies. If the good is for use in a vehicle specified in paragraphs 1 and 2 of Article 10, Articles 10.1 and 10.2 of the automotive appendix apply. Here, the unassembled cargo container is intended to be used with heavy trucks. As a result, Article 4.2 of the automotive appendix applies, which states: 8 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 D of this Appendix that is for use in a heavy truck is: (A) 60 percent under the net cost method or 70 percent under the transaction value method, if the corresponding rule includes a transaction value method, beginning on January 1, 2020, or the date of entry into force of this Agreement, whichever is later; (B) 64 percent under the net cost method or 74 percent under the transaction value method, if the corresponding rule includes a transaction value method, beginning on January 1, 2024, or four years after the date of entry into force of this Agreement, whichever is later; and (C) 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, 2027, or seven years after the date of entry into force of this Agreement, whichever is later, and thereafter. However, in addition to the provisions of the automotive appendix and GN 11, as indicated in GN 11(a)(i), the trilaterally agreed USMCA Uniform Regulations in Appendix A of 19 C.F.R. Part 182 provide further guidance on the interpretation and application of the USMCA rules of origin. The Note to Table D in the Uniform Regulations clarifies that: The Regional Value Content requirements set out in sections 13 or 15 or Schedule I (PSRO Annex) apply to a good for use as “original equipment” in the production of a heavy truck. For an “aftermarket part”, the applicable product-specific rule of origin set out in section 13 or Schedule I (PSRO Annex) is the alternative that includes the phrase “for any other good.” Accordingly, the Uniform Regulations draw a distinction between aftermarket parts and automotive parts that are used as original equipment in the production of a vehicle. See Section 12(1) (“aftermarket part means a good that is not for use as original equipment in the production of passenger vehicles, light trucks or heavy trucks as defined in these Regulations.”). Here, as stated above, the unassembled cargo container will be used as aftermarket parts. In accordance with the Note to Table D, since the merchandise is used as aftermarket parts, we look to the applicable product-specific rule of origin which is the rule in section 13 or Schedule I (PSRO Annex) of the Uniform Regulations instead of the RVC. Schedule I provides that “[t]his schedule is deemed to be the contents of Sections A, B and C of Annex 4-B of the Agreement, as implemented in General Note 11 of the Harmonized Tariff Schedule of the United States…” Here, section 13 of the Uniform Regulations does not contain a product-specific rule of origin for goods of 8707.90.50, HTSUS. Therefore, the rule applicable to the merchandise when used as aftermarket parts is contained in GN 9 11(o)/87.18, which requires “a change to heading 8707 from any other chapter.” You have provided the information necessary to determine whether the tariff shift rule in GN 11(o)/87.18 has been satisfied—namely, a complete bill of materials listing the tariff classification and originating status of each material used in production. As noted above, this rule requires “a change to heading 8707 from any other chapter.” Based on the information provided, no nonoriginating materials are classified in the same heading. Accordingly, provided that all other requirements are met, the unassembled cargo container will be eligible for preferential tariff treatment under the USMCA when used as aftermarket parts. HOLDING: As explained above, the unassembled cargo container will be classified under subheading 8707.90.50, HTSUS, which provides for “[b]odies (including cabs), for the motor vehicles of headings 8701 to 8705: Other: Other….” The general, column one rate of duty is four percent. Also, the unassembled cargo container may be considered a product of Mexico for purposes of marking. Lastly, the goods at issue will also be deemed USMCA originating pursuant to GN 11(o). 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 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 R. Brenner, Chief Valuation and Special Programs Branch