N339292

N339292 May 9, 2024 CLA-2-63:OT:RR:NC:N3:351 CATEGORY: Classification; Country of Origin; USMCA eligibility TARIFF NO.: 6307.90.9891 Mr. Tiago Lopes ShadeFX Canopies Inc 2340 Meadowvale Boulevard, Unit 8 Mississauga, Ontario L5N0H1 Canada RE: Classification, country of origin determination, and eligibility under the United States-Mexico-Canada Agreement (USMCA) of retractable canopies from Canada; 19 CFR 102.21(c)(2); tariff shift Dear Mr. Lopes: In your letter dated April 4, 2024, you requested a classification, country of origin determination, and eligibility under the United States-Mexico-Canada Agreement (USMCA) ruling. In lieu of a sample, photographs of the retractable canopies were provided with your request. The item, described as a “ShadeFX Retractable Canopy,” is an outdoor retractable canopy designed to be attached to the underside of a pergola or gazebo and is intended to provide shade. The canopy is detached from the pergola or gazebo and stored during the winter months. The canopy is composed of 100 percent acrylic woven fabric and treated with a water repellant finish. The fabric is cut, ultrasonically sealed, and attached to aluminum horizontal wings, spaced 8 to 36 inches apart, to create the canopy assembly. The canopy assembly is attached to an aluminum track assembly by gravity clips. The track assembly is available in three different operational models: motor, manual, or rope. The completed retractable canopy, in its extended position, will vary in width between 8 feet to 18 feet and in length between 8 feet to 24 feet. The SKU# will be delineated based on the model type and size: manual operated (SFX-RC-UH-1001 to SFX-RC-UH-1044); rope operated (SFX-RC-UR-1001 to SFX-RC-UR-1039). The retractable canopy is imported with its hardware and installation instructions from Canada. This office will not provide a classification, country of origin determination, and eligibility of USMCA on the motor operated retractable canopy in view of pending litigation in Lutron Electronics Co., Inc. v. United States, CIT No. 22-00264 (“Lutron”). You state the manufacturing operations for the manual and rope operated “ShadeFX Retractable Canopy,” are as follows: China: ShadeFX Retractable Canopy for Both the Manual and Rope Operated Models: Carrier bolt, nylock nut, and bearing wheel are produced and shipped to Canada. Ultra High Molecular Weight (HMW) polyethylene produced and shipped to Canada. Polycarbonate sheets produced and shipped to Canada. Great Britain: ShadeFX Retractable Canopy for Rope Operated Canopy Only: ClamCleat is produced and shipped to Canada. India: ShadeFX Retractable Canopy for Rope Operated Canopy Only: Rope pulley bolt is produced and shipped to Canada. Italy: ShadeFX Retractable Canopy for Manual Operated Canopy Only: Canopy handle is produced and shipped to Canada. Taiwan: ShadeFX Retractable Canopy for Both the Manual and Rope Operated Models: Screws and nuts are produced and shipped to Canada. Thailand: ShadeFX Retractable Canopy for Rope Operated Canopy Only: Screws, topside bolt, rope lead carrier, and rope lead carrier screw are produced and shipped to Canada. Turkey: ShadeFX Retractable Canopy for Both the Manual and Rope Operated Models: Aluminum billets are produced and shipped to Canada. 100 percent acrylic staple fibers are produced and shipped to the United States. United States: ShadeFX Retractable Canopy for Both the Manual and Rope Operated Models: Foam is produced and shipped to Canada. 100 percent polyester filament sewing thread is produced and shipped in cones to Canada. 100 percent acrylic bias braid is produced and shipped in rolls to Canada. 100 percent acrylic yarn is produced. 100 percent acrylic fabric is woven, coated, and shipped in rolls to Canada. Aluminum sheets produced and shipped to Canada. ShadeFX Retractable Canopy for Rope Operated Canopy Only: Rope canopy clamp plate, spring food mount anodized, harken single anchor end pulley block, and double anchor pulley block are produced and shipped to Canada. Vietnam: ShadeFX Retractable Canopy for Both the Manual and Rope Operated Models: Screws are produced and shipped to Canada. Canada: ShadeFX Retractable Canopy for Manual Operated Canopy Only: Eye bolt is produced. Floating carrier and manual lead carrier are produced from the UHMW polyethylene. ShadeFX Retractable Canopy for Rope Operated Canopy Only: Rope canopy spring and spring foot mount is produced from the aluminum sheets. and a white 100 percent polyester braided rope is produced. Rope pully wide, rope pully narrow, and rope lead carrier are produced from the UHMW polyethylene. ShadeFX Retractable Canopy for Both the Manual and Rope Operated Models: Flat gimp is produced from the polycarbonate sheets. Bearing wheel carrier is produced from the UHMW polyethylene. Aluminum billets are extruded and cut to produce aluminum drive beam and wing 1”. End cap, foam, end plate, SS hanger bracket, fixed carrier, carrier bracket, and gravity clip are produced. Fabric and aluminum is cut to size. Fabric edges are ultrasonically sealed. Fabric and aluminum wings are attached to form the canopy assembly. The aluminum track assembly is assembled into a manual operated or rope operated system. The canopy assembly, track assembly, and mounting hardware are packaged and shipped to the United States. ISSUES: What is the classification, country of origin, and USMCA eligibility for the ShadeFX Retractable manual and rope operated canopy? CLASSIFICATION: You suggested that the ShadeFX retractable manual and rope operated canopy should be classified under 6306.22, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for “Tarpaulins, awnings and sunblinds; tents (including temporary canopies and similar articles); sails for boats, sailboards or landcraft; camping goods: Tents: Of synthetic fibers.” We disagree. The item is a retractable textile canopy that does not have any walls, necessary to permit the formation of an enclosure or shelter and provide protection from the elements. Therefore, the item will not be considered a tent. The applicable subheading for the ShadeFX retractable manual and rope operated canopy will be 6307.90.9891, HTSUSA, which provides for “Other made up articles, including dress patterns: Other: Other: Other: Other: Other.” The rate of duty will be 7 percent ad valorem. 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 on the World Wide Web at https://hts.usitc.gov/current. COUNTRY OF ORIGIN - LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (“URAA”) (codified at 19 U.S.C. § 3592), enacted on December 8, 1994, provides the rules of origin for textile and apparel products entered, or withdrawn from warehouse for consumption on and after July 1, 1996. Section 334 of the URAA was amended by section 405 of title IV of the Trade and Development Act of 2000, Public Law 106-200, 114 Stat. 251. Section 102.21 of Title 19 of the Code of Federal Regulations (19 C.F.R. § 102.21), implements the URAA. Thus, the country of origin of a textile or apparel products will be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of section 102.21 and, where appropriate to the specific context, by application of the additional requirements or conditions of section 102.12 through 102.19 of this part. Paragraph (c)(1) states, “The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.” As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable. Paragraph (c)(2) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of

Section 334 of the Uruguay Round Agreements Act (“URAA”) (codified at 19 U.S.C. § 3592), enacted on December 8, 1994, provides the rules of origin for textile and apparel products entered, or withdrawn from warehouse for consumption on and after July 1, 1996.  Section 334 of the URAA was amended by section 405 of title IV of the Trade and Development Act of 2000, Public Law 106-200, 114 Stat. 251.  Section 102.21 of Title 19 of the Code of Federal Regulations (19 C.F.R. § 102.21), implements the URAA.  Thus, the country of origin of a textile or apparel products will be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of section 102.21 and, where appropriate to the specific context, by application of the additional requirements or conditions of section 102.12 through 102.19 of this part. Paragraph (c)(1) states, “The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.”  As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.Paragraph (c)(2) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:”  Paragraph (e) in pertinent part states,The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:HTSUS            Tariff shift and/or other requirements6307.90               The country of origin of a good classifiable under subheadi