&&Acrylonitrile Butadiene Styrene, ABS XR404T (ABS) is a polymer, described as a highly functional material used primarily in automobiles, home appliances and IT devices. As per the ruling request, this good is classified as 3903.90 which provides for Polymers of Styrene, in primary forms; other.&&&&The production involves raw materials being weighed and conveyed to a hopper, then fed into a mixer. The materials are subsequently extruded, they undergo controlled and specific heating to induce melting the materials. The heating is done precisely using sophisticated mechanisms. Then the materials are cooled using meticulous processes to ensure the proper characteristics are preserved once in the solid form. The materials are then cut and sorted and packaged.

&&At issue is whether the ABS qualifies for preferential tariff treatment under the Canada-United States-Mexico Agreement (CUSMA) Rules of Origin Regulations and chapter 4 (rules of origin) of the CUSMA.&&&&Section VII of chapter 4, annex 4-B Product-Specific Rules of Origin first includes two notes and seven rules before the product specific rules of origin. Note 1 states: A good of any chapter or heading in Section VII that satisfies one or more of Rules 1 through 7 of this Section shall be treated as an originating good, except as otherwise specified in those rules.&&&&Note 2 states: Notwithstanding Note 1, a good is an originating good if it meets the applicable change in the tariff classification or satisfies the applicable value content requirement specified in the rules of origin in this section.&&&&This advanced ruling request specifically involves the third rule. Rule 3: Mixtures and Blends Rule- A good of Chapter 39 is an originating good if the deliberate and proportionally-controlled mixing or blending (including dispersing) of materials, other than the addition of diluents, to conform to predetermined specifications occurs in the territory of one or more of the Parties, resulting in the production of a good having essential physical or chemical characteristics that are relevant to the purposes or uses of the good and are different from the input materials.&&&&Based on the information provided, the ABS undergoes sufficient production in the US to meet rule 3. Note 1 indicates that if a rule is met, the good shall be treated as originating. However we must also factor in Note 2. Note 2 maintains that notwithstanding note 1, meaning, regardless of note 1, the product specific rule of origin still must be met.&&&&The product specific rule of origin for the final good is as follows;39.01-39.15- A change to heading 39.01 through 39.15 from any other heading, including another heading within that group, provided that the originating polymer content of heading 39.01 through 39.15 is not less than 50 percent by weight of the total polymer content.&&&&When reviewing the bill of materials, there are two materials that are classified at 3903, and are listed as being of South Korea origin. These materials do not make the heading change required by the rule of origin.