CLA-2-63:OT:RR:NC:N3:351
Mr. Jeremy Page
Page Fura, P.C.
939 West North Avenue, Suite 750 Chicago, IL 60642
RE: Country of origin determination and eligibility under the United States-Mexico-Canada Agreement (USMCA) of a RV slide topper from China; 19 CFR 102.21(c)(2); tariff shift; Section 301
Dear Mr. Page:
In your letter dated November 8, 2023, you requested a country of origin determination and eligibility under the United States-Mexico-Canada Agreement (USMCA) ruling on behalf of your client, Lippert Components Inc. In lieu of a sample, photographs of the slide topper were provided with your request.
The item, described as a “Solera Slide Topper 5000 series,” is a roof protection system designed to be permanently attached to the outer surface of a RV. The slide topper is intended to protect the RV’s inner wall against inclement weather and debris when the RV is in its expanded state. It is also stated the slide topper can help protect seals and caulking on the roof from the damaging effects of the sun’s rays on the exterior area. The slide topper operates as a roller shade and is composed of a single layer of 100 percent polyester woven fabric laminated with polyvinyl chloride (PVC) non-cellular film on each side. The fabric is cut, both long edges of the fabric panel are folded, a poly-cord is inserted into the channel, and the edges of fabric are heat welded together. The fabric is rolled up onto an aluminum rollbar and two spring drive assemblies are inserted into each end. The slide topper, in its extended position, will measure 48 inches in length and will vary in width between 66 and 192 inches. In its closed state the width will be 4 ½ inches. The slide topper is imported with its hardware and installation instructions from Mexico.
The fabric which comprises the slide topper is said to be laminated on both sides with a plastic film. Note 3 to Chapter 59 of the Harmonized Tariff Schedule of the United States (HTSUS) states: For the purposes of heading 5903, “textile fabrics laminated with plastics” means products made by the assembly of one or more layers of fabrics with one or more sheets or film of plastics which are combined by any process that bonds the layers together, whether or not the sheets or film of plastics are visible to the naked eye in the cross-section. Based upon the information received in your request, we find that the subject slider topper is composed of textile fabric laminated with plastics of heading 5903, HTSUS. Therefore, the completed slider topper of laminated fabric will be considered a textile article of Section XI.
You state the manufacturing operations for the slider topper are as follows:
China:
100 percent polyester fabric is woven, dyed, laminated with PVC, and shipped in rolls to Mexico.
Slide topper drive head, slide topper idler head, screws, and pin spring tension retainer are produced and shipped to Mexico.
Turkey:
Extension bar, extension bar bracket, and prep mounting bracket is produced and shipped to Mexico.
United States:
Extension bar bracket screw cover, aluminum extrusion punched, tube plug, cohensive kraft paper, screws, poly rope, and slide topper roller tube tape are produced and shipped to Mexico.
Taiwan:
Screws are produced and shipped to Mexico.
Unknown:
Polyester rope is produced and shipped to Mexico.
Mexico.
Rollbar is produced.
Fabric is cut to size.
Both long edges of the fabric panel are folded creating a channel in which a polyester cord is inserted and heat welded closed.
The fabric is rolled up onto an aluminum rollbar tube.
Two spring drive assemblies are inserted into each end of the fabric and secured by three screws to the rollbar tube.
The spring drive is tightened.
The slide topper is inserted into a plastic bag along with mounting hardware, fasteners, and an instruction manual and then into cardboard tube for shipping to the United States.
ISSUES:
What is the country of origin and USMCA eligibility for the subject merchandise?
CLASSIFICATION:
You suggested that the slide topper should be classified under heading 6306.12.0000, Harmonized Tariff Schedule of the United States Annotated, (HTSUSA), which provides for “Tarpaulins, awnings and sunblinds; tents (including temporary canopies and similar articles: sails for boats, sailboards or landcraft; camping goods: Tarpaulings, awnings, and sunblinds: Of synthetic fibers.” We disagree. The slide topper is not an awning or sunblind because those are covers for windows on buildings. The applicable subheading for the slide topper 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:
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 product 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 requirements 6307.90 The country of origin of a good classifiable under subheading 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
Accordingly, as the fabric for the slide topper was manufactured in China, as per the terms of the tariff shift rule for heading 6307, HTSUS, the country of origin of the slide topper, including for purposes of determining the application of Section 301 duties, is China.
USMCA ELIGIBILITY: The United States-Mexico-Canada Agreement (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: (b) 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 nonoriginating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); or …
Since the slide topper contains non-originating fabric from China and various other components from China, Turkey, Taiwan, the United States, and one unknown country, it is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i) nor is it produced exclusively from originating materials under GN 11(b)(ii). Therefore, we must next determine whether the slide topper qualifies under GN 11(b)(iii); which includes the provisions of subdivision (o).
The applicable provisions under subdivision (o) include two Chapter Rules under Chapter 63 and the rule of origin which are as follows: Chapter Rule 1: For the purposes of determining the origin of a good of this chapter, the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the rule for that good. Chapter Rule 2: Effective January 1, 2022, and not withstanding chapter rule 1 of this chapter, for the purposes of determining the origin of a good of this chapter, a good of this chapter containing fabrics of heading 5903 shall be considered originating only if all fabrics used in the production of the fabrics of heading 5903 are formed and finished in the territory of one or more of the USMCA countries. This note shall not apply to goods of heading 6305, goods of subheadings 6306.12 or 6306.22 or goods of subheading 6307.90 that are not surgical drapes or national flags. … 5. A change to headings 6304 through 6310 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5310 through 5311, chapters 54 through 55 or headings 5801 through 5802 or 6001 through 6006, or other made-up textile articles of heading 9619, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the USMCA countries. In the instant case, the slide topper is classified by application of General Rule of Interpretation (GRI) 1 under heading 6307, HTSUS. Therefore, there is no need to employ an essential character analysis to classify the slide topper as provided for under Chapter Rule 1. Accordingly, Chapter Rule 1 does not apply in this case to restrict the application of the tariff shift rule to a specific component in the subject slide topper, but it does serve to eliminate from consideration those components not considered in classifying the slide topper such as the slide topper drive head, slide topper idler head, screws, pin spring tension retainer, extension bar, extension bar bracket, prep mounting bracket, polyester rope, and rollbar. See, e.g., HQ H043056 (May 5, 2009). Thus, the tariff shift rule applies to the fabric used to produce the slide topper.
The nonoriginating laminated polyester fabric from China is classified under heading 5903, HTS. The fabric is cut, and the slide topper is assembled in Mexico. Although the laminated polyester fabric is classified under chapter 5903, the provision under subdivision (o) for Chapter Rule 2 under Chapter 63 does not apply to goods of subheading 6307.90 that are not surgical drapes or national flags. In addition, since the laminated polyester fabric of heading 5903, HTSUS, is classified in a heading other than headings 5106 through 5113, 5204 through 5212, 5310 through 5311, chapters 54 through 55 or headings 5801 through 5802 or 6001 through 6006, or other made-up textile articles of heading 9619, the tariff shift rule is met. Accordingly, the slide topper is eligible for USMCA preferential tariff treatment under the GN 11, HTSUS.
HOLDING:
The applicable subheading for the slide topper will be 6307.90.9891, HTSUSA, which provides for “Other made up articles, including dress patterns: Other: Other: Other: Other: Other.” The applicable rate of duty is 7 percent ad valorem.
The country of origin of the slide topper, including for purposes of determining the applicable Section 301 duties, is China. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6307.90.9891, HTSUSA, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 6307.90.9891, HTSUSA, listed above.
The criteria required for preferential treatment under the USMCA has been satisfied based upon an analysis of the facts provided. Therefore, the slide topper is eligible for preferential treatment under the USMCA and will not be subject to the column 1 General Rate of duty within the HTSUS. However, as the country of origin of the subject goods for purposes of Section 301 is China, the slide topper is subject to the Section 301 duties. The HTSUSA is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.
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, please contact National Import Specialist Kristine Dodge at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division