Lexmark’s challenge: CBP redefines country of origin
November 27, 2023
The U.S. Customs and Border Protection’s ruling identifies Lexmark’s Mexico-assembled MS/MX and CS/CX series printers as originating from China.
In an influential ruling by the U.S. Customs and Border Protection (CBP), the country of origin for Lexmark’s MS/MX and CS/CX series printers, assembled in Mexico, has been reassigned to China. This determination came in response to a request from Lexmark for an official clarification on the origin of these specific printer models.
The ruling critically assesses the printers’ assembly process, highlighting that the principal components, referred to as printer transports, are manufactured in China. The CBP underscored that these printers undergo a significant transformation in China, which is the primary factor in determining their country of origin. This transformation is substantial enough that, despite the printers being assembled in Mexico, their essence and functional identity are attributed to the earlier manufacturing processes in China.
This shift in the country of origin classification may subject Lexmark to additional Section 301 trade remedy duties, aligning with the U.S. government’s intensified review of technology product origins, with a particular focus on items connected to China. It represents increased vigilance on trade compliance and tracing product components to their source.
For Lexmark, this reclassification means that its products, previously considered to originate and be imported from Mexico, now carry a Chinese origin tag. This could lead to higher tariffs and closer trade examination. Such a reclassification may necessitate Lexmark to critically reassess its manufacturing and supply chain strategies to adapt to the new trade landscape. Furthermore, this ruling could instigate broader discussions within the technology sector regarding the complexities of globalization, supply chain intricacies, and adherence to trade laws.
Lexmark has not commented publicly on this decision. This ruling is anticipated to have a ripple effect, potentially reshaping Lexmark’s operational approaches and setting a precedent for other technology firms in managing their international production and compliance strategies.
You can view the H304677 ruling here.
Categories : World Focus
Tags : Business CBP China Country of Origin Lexmark Mexico USA
