July 24, 2009 CBP Bulletin Notice on NAFTA Country of Origin Marking of Polyurethane Foam Product
In the July 24, 2009 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 43, No. 29), CBP published a notice modifying one ruling and revoking a treatment as follows:
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Modification of ruling, revocation of treatment.CBP is modifying one ruling on the country of origin marking of "Stepanfoam RI-9736-B"; in addition, this notice covers any rulings on this merchandise which may exist but have not been specifically identified. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.
According to CBP, the modification and revocation are effective for merchandise entered or withdrawn from warehouse for consumption on or after September 22, 2009.
Polyurethane resin foam product. Stepanfoam RI 9736-B is a mixture of U.S.-origin polyurethane resin, classified in HTS subheading 3909.50.50 and a Mexican-origin blowing agent - dichlorofluoroethane - classified in HTS 2903.49.60.
CBP is issuing HQ H046759 in order to modify NY N029916 and revise the country of origin determination for marking purposes. In NY N029916, CBP determined that the goods qualified under the NAFTA preference override of 19 CFR 102.19(b) and that therefore the country of origin for duty and marking purposes was Mexico. CBP now determines that this ruling is incorrect in that the NAFTA preference override of 19 CFR 102.19(b) only determines the country of origin of a good for duty purposes. The country of origin for marking purposes of a good is not determined by operation of 19 CFR 102.19(b).
CBP Regulations in 19 CFR 102.11 set forth the required hierarchy for determining whether a good is a good of a NAFTA country for marking purposes. Because the Stepanfoam RI 9736-B is made from polyurethane that is manufactured in the U.S. and blended with a blowing agent in Mexico, it is neither wholly obtained or produced (19 CFR 102.11(a)(1)), nor produced exclusively from domestic materials (19 CFR 102.11(a)(2)).
The Stepanfoam RI 9736-B also does not meet the requirements of 19 CFR 102.11(a)(3) which requires each foreign material to undergo an applicable change in tariff classification set out in 19 CFR 102.20 and satisfy any other applicable requirements, as Stepanfoam RI 9736 and the Stepanfoam RI 9736-B are both classified under the same subheading.
CBP then looks to 19 CFR 102.11(b)(1) and 102.18 (b)(1)(iii), which both pertain to essential character, and determines that the essential character of the Stepanfoam RI 9736-B is imparted by the U.S.-origin polyurethane.
Accordingly, the country of origin for marking purposes of the Stepanfoam RI 9736-B is the United States. The Stepanfoam RI 9736-B is not required to be marked.
(19 CFR 102.18 (b)(1)(iii) provides that if there is only one material that is 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, then that material will represent the single material that imparts the essential character to the good under 102.11.)
New: US origin, no marking required; Previous: marking "Made in Mexico" required
(See ITT's Online Archives or 04/30/09 news, 09043075, for BP summary of proposed HQ H046759.)
July 24, 2009 CBP Bulletin (Vol. 43, No. 29) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/