CLA-2-05:OT:RR:NC:N5:231

Mr. Daniel Phillips
Genesee Valley Farm
3520 South Main Street Road
Batavia, NY 14020

RE: The tariff classification, marking, and status under the United States-Mexico-Canada Agreement (USMCA) of horse semen from Canada

Dear Mr. Phillips,

In your letter dated March 21, 2025, you requested a binding ruling on the tariff classification, marking, and United States-Mexico-Canada Agreement (USMCA) eligibility of horse semen imported from Canada.

The subject merchandise is Standardbred horse semen. Stallions will produce the semen that is collected through veterinary procedures and then inserted into syringes of 50 cubic centimeters. The semen will be used to inseminate and impregnate Standardbred mares through artificial means. The merchandise will be imported to the United States in ten syringes of 50 cubic centimeters each, which are then packed in Styrofoam boxes weighing 4 lbs.

Classification:

The applicable tariff provision for the horse semen will be subheading 0511.99.4040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Animal products not elsewhere specified or included; dead animals of chapter 1 or 3, unfit for human consumption: Other: Other: Other: Other animal semen.” The general rate of duty will be 1.1 percent ad valorem.

Your inquiry also requests a ruling on the marking and status under the United States-Mexico-Canada Agreement (USMCA) of the merchandise. Neither marked samples nor pictorial representations of the labels were submitted for review with your letter.

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 container) imported into the U.S. 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 U.S. the English name of the country of origin of the article.

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 NAFTA or USMCA country, the marking rules set forth in Part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin.”

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. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. §102.21. See 19 C.F.R. §102.11.

Applied in sequential order, 19 CFR Part 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 Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

The horse semen is “wholly obtained or produced” from horses located and originating in Canada. Therefore, paragraph (a)(1) can be used to determine the country of origin of the semen, which in this case is Canada.

As previously ruled, conveyances such as syringes,

“…are exempt from individual marking by virtue of 19 U.S.C. §1304(a)(3)(J) and 19 C.F.R. §134.33, since ‘[c]hemicals, drugs, medicinal, and similar substances, when imported in capsules, pills, tablets, lozenges, or troches’ are J-List articles. Articles on the J-List are exempt from individual marking, however the outermost container that ordinarily reaches the ultimate purchaser of a J-List article must be marked with the country of origin of the article.”

The imported syringes containing the horse semen are an analogous conveyance. Articles on the J-List are exempt from individual marking, but the outermost container that ordinarily reaches the ultimate purchaser of a J-List article must be marked with the country of origin of the article, in this case Canada. Therefore, the boxes in which the horse semen syringes are packed must be marked accordingly.

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));

Since the horse semen is a good wholly obtained or produced entirely in the territory of one or more USMCA countries under GN 11(b)(i), it is a good originating in the territory of a USMCA country.? Therefore, the merchandise would be eligible for preferential tariff treatment under the USMCA.

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 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, contact National Import Specialist Ekeng Manczuk at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division