&&Acrylonitrile Styrene Acrylate (ASA) is polystyrene, used in the manufacturing of automotive parts and building materials.&&&&The goods are classified in 3903.90.00.90 (Canadian Tariff) which provides for,&&&&39.03 Polymers of styrene, in primary forms.&&&&-Polystyrene:&&&&3903.90.00 –Other&&&&90-----Other&&&&Under the Harmonized System for tariff classification, the Canadian and US sub-headings are the same – 3903.90.&&&&Product-Specific Rule of Origin (PSRO)&&&&The applicable PSRO for the good classified in 3903.90 is,&&&&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.&&&&In addition to the PSRO, Annex 4-B also contains the following stipulations,&&&&Section VII - Plastics and Articles Thereof; Rubber and Articles Thereof (Chapter 39-40)&&&&Note 1: 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: Notwithstanding Note 1, a good is an originating good if it meets the applicable change in tariff classification or satisfies the applicable value content requirement specified in the rules of origin in this Section.&&&&And seven rules, of which “Rule 3: Mixtures and Blends Rule” would apply.&&&&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.

&&At issue is whether the ASA 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.&&&&In order to qualify as an originating good, Note 1, Note 2, Rule 3, and the PSRO, all under Annex 4-B, must all be taken into consideration. Taken together, this effectively means that the Mixtures and Blends Rule (#3) must be met in addition to the PSRO.&&&&For the production process, the broker has supplied sufficient information in the production process description and bills of materials to show that the deliberate and measured mixing and blending has taken place. Therefore the Rule 3 requirement is met.&&&&Albeit Rule 3 is met, Note 1 states that if a rule is met, the good shall be treated as originating. However Note 2 maintains that notwithstanding Note 1, meaning regardless of Note 1, the PSRO must still be met.&&&&The PSRO for the goods requires a change to heading 39.03 from any other heading, including another heading within 39.01 through 39.15, 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.&&&&The bills of materials were reviewed for identification of materials, HS number, country of origin, unit quantity, and unit value.&&&&ASA LI928 95222 Acrylonitrile Styrene Acrylate (ASA)&&This good contains ASA SA927-DP LATEX, of unknown origin (non-originating), of HS 3906.90. This material meets the tariff change of the first part of the rule (change to heading 39.03 from any other heading, i.e. from 39.06), but does not meet the second part of the rule because there is no originating polymer content. The originating polymer content of 39.01-39.15 as a portion of total polymer content by weight is [0kg/0.12kg] X 100% = 0%. The PSRO has not been met.&&&&ASA LI931C NP05 Acrylonitrile Styrene Acrylate (ASA)&&This good contains eight materials, classified within the range of 39.01 through 39.15, although two materials have unit quantity usage of 0 kg, including one of US origin. Of the seven non- originating materials, due to their classification in 39.01-39.15, the second part of the rule must be met. The second part of the rule is not met because there is no originating polymer content. The originating polymer content of 39.01-39.15 as a portion of total polymer content by weight is [(0kg/0.99kg) X 100%] = 0%. The PSRO has not been met.&&&&ASA LI931C NP31 Acrylonitrile Styrene Acrylate (ASA)&&This good contains six materials, classified within the range of 39.01 through 39.15, although one material has a unit quantity usage of 0 kg. The six materials are non-originating, and due to their classification in 39.01-39.15, the second part of the rule must be met. The second part of the rule is not met because there is no originating polymer content. The originating polymer content of 39.01-39.15 as a portion of total polymer content by weight is [(0kg/0.96kg) X 100%] = 0%. The PSRO has not been met.