The applicability of 9802.00.80 and Section 301 for a multiple-walled insulating unit of glass assembled in Mexico

N329947 January 20, 2023 CLA-2-70:OT:RR:NC:N1:126 CATEGORY: Country of Origin; Classification Jorge A. Torres   Interlink Trade Services 6500 South 35th St. McAllen, TX 78503 RE:  The applicability of 9802.00.80 and Section 301 for a multiple-walled insulating unit of glass assembled in Mexico Dear Mr. Torres: In your letter dated December 20, 2022, on behalf of your client, Western Reflections, LLC, you requested a determination as to the applicability of both Section 301 and subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), for a multiple-walled insulating unit of glass containing a leaded glass panel from China.  The merchandise under consideration is a multi-walled insulating glass unit (“IGU”), SKU/Part Number 27127001.  The classification, country of origin, country of origin marking, and USMCA applicability were addressed in ruling N328711, dated November 8, 2022.  It was determined in that ruling that the IGU was classifiable in subheading 7008.00.0000, HTSUS.  It was also determined that the goods were eligible for USMCA preferential treatment and were of Mexico origin for marking purposes.  In this request, you seek to determine if Section 301 duties are applicable due to Chinese origin materials in the IGU.  You also seek to identify if subheading 9802.00.80 is applicable to the US origin components incorporated into the IGU. Section 301 Trade Remedy As noted in ruling N328711, the IGUs incorporate two outer tempered glass panels from the US, an inner leaded glass panel from China, a “Deco Seal” from the US, vinyl barrier tape from China, and a printed “Made in Mexico” label from the US.  In Mexico, the following operations are completed: Leaded Glass Panel is cleaned Tempered Glass Sheets are cleaned Leaded Glass Panel is inspected for any defects Leaded Glass Panel and Tempered Glass Sheets are transferred to insulation chamber Leaded Glass Panel is placed between the 2 tempered glass sheets and insulating technology process (“Deco Seal”) is applied IGU is introduced in the Bake Oven After the baking process, the vinyl barrier tape is applied The “Made in Mexico” label is applied The substantial transformation analysis is applicable when determining the country of origin for purposes of applying Section 301 trade remedies. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing.  This determination is based on the totality of the evidence.  In the instant case, the foreign Chinese components, and the domestic U.S. material components lose their identity in Mexico and undergo a substantial transformation, thereby, taking on a new name, character, and identity.  The joining, the insulating technology process, the baking process, and the combining of the individual components into a multiple-walled insulating unit of glass render a product that is distinguishable from the individual components sourced from China and the U.S.  Because a substantial transformation occurs in Mexico, Mexico is the country of origin for duty purposes.  As such, the multiple-walled insulating unit of glass is not subject to the additional duties under Section 301 of the Trade Act of 1974, as amended, upon importation into the United States. 9802.00.80 Applicability In your letter, you inquire as to the applicability of the special classification provision of subheading 9802.00.80, HTSUS, which provides for articles assembled abroad in whole or in part of U.S. fabricated components which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting.  However, to address whether the good is eligible for 9802, HTSUS, additional information is needed. A complete explanation of the baking process and its effect on the US tempered glass panels is required.  When this information is available, you may wish to consider resubmission of your request.     This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Elena Pietron at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division