RE: The country of origin and eligibility under the United States-Mexico-Canada Agreement (USMCA) of TF-ODB-G Color Former from Canada

U.S. Department of Homeland Security U.S. Customs and Border Protection National Commodity Specialist Division One World Trade Center, Suite 51.201 New York, NY 10007 U.S. Customs and Border Protection N364188 September 2, 2026 OT:RR:NC:N3:136 CATEGORY: Origin; Trade Programs TARIFF NO.: 3204.19.4000 Eric Li SouthMountain Trading Inc. 3180 262 Street Unit 2 Langley V4W 2Z6 Canada RE: The country of origin and eligibility under the United States-Mexico-Canada Agreement (USMCA) of TF-ODB-G Color Former from Canada Dear Mr. Li: In your letter dated August 10, 2026, you requested a binding ruling on the country of origin and eligibility under the United States-Mexico-Canada Agreement (USMCA) of TF-ODB-G Color Former. In your submission, the subject product is identified as TF-ODB-G (CI-Free Hydrophilic ODB 2), a thermal paper grade color former produced in Canada from Chinese sourced raw material (ODB-2) through proprietary purification and hydrophilic surface functionalization processes. You state that the manufacturing operations in Canada include purification, chloride reduction, filtration, controlled surface functionalization, vacuum drying, granulation, and quality verification. You explain that that the Chinese sourced raw material contains existing manufacturing impurities, including chlorine, which will be eliminated by the Canadian processing by more than 80%. The provided supplemental submission includes independent laboratory reports, which confirm that the Canadian Industrial Purification Process will eliminate more than 80% of existing impurities form the Chinese sourced raw material (ODB-2). Country of Origin and Marking The "country of origin" is defined in 19 CFR 134.1(b) 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 substantial transformation in order to render such other country the 'country of origin' within the meaning of this part.” However, for a good of a USMCA country, the marking rules set forth in part 102 of this chapter will determine the country of origin. 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 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 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 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. To provide a more seamless transition to the USMCA for Canadian and Mexican traders, at this time, CBP continues to utilize the marking rules in 19 C.F.R. Part 102, with the exception of 19 C.F.R. § 102.19, for purposes of country of origin marking with respect to goods of those countries. Title 19, C.F.R. § 102.11(a) provides that the country of origin of a good is the country in which: (a)(1) The good is wholly obtained or produced; (a)(2) The good is produced exclusively from domestic materials; or (a)(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. Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case because the imported products are neither wholly obtained or produced or produced exclusively from “domestic” materials. Because the analysis of sections 102.11(a)(1) and 102.11(a)(2) does not yield a country of origin determination, we look to section 102.11(a)(3). Pursuant to 19 C.F.R. §102.11(a)(3), the country of origin of a good is the country in which each foreign material incorporated in that good undergoes an applicable change in tariff classification as set forth in 19 C.F.R. §102.20 and satisfies any other applicable requirements of that section. Pursuant to HQ H307415, issued March 26, 2024, the Chinese sourced ODB-2 material used to produce the finished product in Canada is classified in subheading 3204.19.4000, Harmonized Tariff Schedule of the United States (HTSUS). The change in tariff classification must be made in accordance with section 102.20(f), Section VI: Subheading 3204.18 - 3204.19, which requires “A change to subheading 3204.18 through 3204.19 from any other subheading outside that group, except from subheading 3204.11 through 3204.17.” Upon importation into the U.S., the subject TF-ODB-G Color Former is classified in subheading 3204.19.4000, HTSUS. As such, since the Chinese source material used to produce this product in Canada is classified in the same subheading as the finished product, the applicable tariff shift rule for 19 CFR 102.20 is not satisfied, and therefore for marking purposes, the country of origin of the TF-ODB-G Color Former is China. 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)); or The applicability of relevant USMCA origin provisions governing chemical products, outlined in GN 11(n)(iv), which state:
(C) A good of chapters 28 through 38, except for a good of heading 3301 or subheadings 3502.11 through 3502.19, that is subject to purification is an originating good, provided that the purification occurs in the territory of one or more of the USMCA countries and results in the following: (1) the elimination of not less than 80 percent of the content of existing impurities; Based on the provided information, we have found that the TF-ODB-G Color Former will satisfy the requirements of GN 11(n)(iv)(c)(1), and therefore the product is originating under the USMCA, and is entitled to preferential treatment under USMCA upon compliance with all applicable laws, regulations, and agreements. This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U.S. Environmental Protection Agency. Information on the TSCA can be obtained by contacting the EPA at 1200 Pennsylvania Avenue, N.W., Mail Code 70480, Washington, D.C., by telephone at (202) 554-1404, or by visiting their website at www.epa.gov. 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 Nuccio Fera at [email protected]. Sincerely, (for) James P. Forkan Director National Commodity Specialist Division