The tariff classification and eligibility of the United States-Mexico-Canada Agreement (USMCA) of a bumper beam from Mexico
Active· CBP ruling HQ N347213· Issued 2025-04-30
Ruling text
N347213
April 30, 2025
CLA-2-87:OT:RR:NC:N2:206
CATEGORY: Classification; Trade Programs
TARIFF NO.: 8708.10.6050; 9903.01.04; 9903.01.27
Hyerim Kim Hanwha Advanced Materials America, LLC. 4400 North Park Dr., Opelika, AL 36801 RE: The tariff classification and eligibility of the United States-Mexico-Canada Agreement (USMCA) of a bumper beam from Mexico Dear Ms. Kim: In your letter dated March 31, 2025, you requested a binding ruling on the tariff classification and eligibility of the bumper beam under the United States-Mexico-Canada Agreement (USMCA). The article under consideration is a Rear Bumper Beam (Part Number 86631-DWFA0), which is a structural component located behind the rear bumper cover. It is designed to absorb and distribute impact energy during a collision, protecting the vehicle's body. The item is used in a 2025 Kia Sportage vehicle. You state that the glass fiber mat reinforced thermoplastic (GMT) sheets are made in South Korea and imported to Mexico for further manufacturing. In Mexico, the GMT sheets are stacked and fed into an oven. Then the sheets are molded into shapes in the pressing machine and cooled to create a finished good. Classification: The applicable subheading for the Rear Bumper Beam (Part Number 86631-DWFA0) will be 8708.10.6050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Bumpers and parts thereof: Parts of bumpers: Other.” The general rate of duty will be 2.5% ad valorem. USMCA: 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(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 non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); Here, the merchandise will be produced in Mexico using non-originating materials. Therefore, the merchandise will not qualify as originating pursuant to GN 11(b)(i) or (ii). We must therefore consider whether the merchandise qualifies as originating pursuant to GN 11(b)(iii). The rear bumper beam is classified in subheading 8708.10, HTSUS. The applicable product-specific rule of origin in GN 11(o)/87.08 is underscored and requires: 20. For a good of subheading 8708.10 for use in a passenger vehicle, light truck, or heavy truck: (A) A change to subheading 8708.10 from any other heading; or (B) A change to subheading 8708.10 from subheading 8708.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than 70 percent under the net cost method. The GMT sheets from South Korea are correctly classified in subheading 3921.90, HTSUS. Therefore, the tariff shift is met. Subheading rule: The underscoring of the designations in subdivisions 20 through 21 pertain to goods provided for in heading 8708.10. If the good is for use in a passenger vehicle or light truck, Article 3.4 of the automotive appendix applies. GN 11(k) provides special rules for automotive goods. GN 11(k)(i) provides that: An automotive good and other motor vehicles and parts described herein shall be subject to applicable requirements set forth in this paragraph, including, with respect to a passenger vehicle or light truck that has been authorized to use the alternative staging regime described under subparagraph (viii), applicable requirements for the duration of the alternative staging period specified in the approval. GN 11(k)(ii)(E)(2) includes in the definition of an “automotive good” any “part, component or material listed in table A.1, A.2, B, C, D, or E of the automotive appendix, subject to any provisions that may be included in regulations issued by the Secretary of the Treasury.” GN 11(k)(ii)(D) defines “automotive appendix” as “. . . the Appendix to Annex 4-B of the USMCA (relating to the product-specific rules of origin for automotive goods, as reflected in subdivision (o) of this note).”
Examining Table B of the automotive appendix, entitled “Principal Parts for Passenger Vehicles and Light-Trucks,” the subject merchandise is listed (8708.10 Bumpers and parts thereof) and is for use in a passenger vehicle. The Note to Table B in the automotive appendix provides that “[t]he Regional Value Content requirements set out in Article 3 of this Appendix apply to a good for use in a passenger vehicle or light truck.” Article 3.4 of the automotive appendix states that: 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) 62.5 percent under the net cost method or 72.5 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) 65 percent under the net cost method or 75 percent under the transaction value method, if the corresponding rule includes a transaction value method, beginning on January 1, 2021 or one year after the date of entry into force of this Agreement, whichever is later; (c) 67.5 percent under the net cost method or 77.5 percent under the transaction value method, if the corresponding rule includes a transaction value method, beginning on January 1, 2022 or two years after the date of entry into force of this Agreement, whichever is later; or (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. 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 B 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 passenger vehicle. 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, the passenger vehicle rear bumper beam will be used either as original equipment or as aftermarket parts. In accordance with the Note to Table B, when the merchandise is used as aftermarket parts, the applicable product-specific rule of origin is the rule in section 13 or Schedule I (PSRO Annex) of the Uniform Regulations that includes the phrase “for any other good.” 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 contains the following product-specific rules of origin for goods of 8708.10.60, HTSUS. 8708.10. For a good of subheading 8708.10 for use as original equipment in a passenger vehicle or light truck: (1) A change to subheading 8708.10 from any other heading; or (2) A change to subheading 8708.10 from subheading 8708.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: (a) 62.5 percent under the net cost method, beginning on July 1, 2020 until June 30, 2021; (b) 65 percent under the net cost method, beginning on July 1, 2021 until June 30, 2022; (c) 67.5 percent under the net cost method, beginning on July 1, 2022 until June 30, 2023; (d) 70 percent under the net cost method, beginning on July 1, 2023, and thereafter. For any other good of subheading 8708.10 for use as original equipment in any other vehicle or as an aftermarket part: (5) A change to subheading 8708.10 from any other heading; or (6) A change to subheading 8708.10 from subheading 8708.99, whether or not there is also a change from any other heading, provided there is a regional value content of not less than 50 percent under the net cost method. You have provided the information necessary to determine whether the above tariff shift rule has been met. Section 13 of the Uniform Regulations, rules (1) for use as original equipment in a passenger vehicle and (5) for use as an aftermarket part require “A change to subheading 8708.10 from any other heading.” Based on the information provided, no non-originating materials are classified in the same subheading as the rear bumper beam (8708). Accordingly, provided that all other requirements are met, the passenger vehicles rear bumper beam (Part Number 86631-DWFA0) will be eligible for preferential tariff treatment under the USMCA when used as original equipment or aftermarket parts. Products of Mexico as provided by heading 9903.01.01 in Section XXII, Chapter 99, Subchapter III, U.S. Note 2(a), HTSUS, other than products classifiable under headings 9903.01.02, 9903.01.03, 9903.01.04, and 9903.01.05, HTSUS, will be subject to an additional 25 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.01, in addition to subheading 8708.10.6050, HTSUS, listed above. Articles that are entered free of duty under the terms of general note 11 to the HTSUS (U.S.-Mexico-Canada Agreement (USMCA)), including any treatment set forth in subchapter XXIII of Chapter 98 and subchapter XXII of chapter 99 of the HTSUS, will not be subject to the additional ad valorem duties provided for in heading 9903.01.01. If your product is entered duty free as originating under the USMCA, you must report heading 9903.01.04, HTSUS, in addition to subheading 8708.10.6050, HTSUS. Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong
and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. ?Products from all other countries will be subject to an additional 10 percent ad valorem rate of duty. ?Your product falls within an excepted subheading. ?At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.27, in addition to subheading 8708.10.6050, HTSUS, listed above.? Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/current. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Liana Alvarez at liana.alvarez@cbp.dhs.gov.
Sincerely,
Steven A. Mack Director National Commodity Specialist Division
Source: rulings.cbp.gov — ruling N347213, retrieved 2026-10-12T06:04:43Z, republished verbatim. This digest is informational; only CBP issues binding rulings.