CLA-2-76:OT:RR:NC:N5:116
Mr. Tiago Lopes
ShadeFX Canopies Inc.
8-2340 Meadowvale Blvd.
Mississauga, Ontario L5N 0H1
Canada
RE: The tariff classification, country of origin for marking purposes, and status under the United States-Mexico-Canada Trade Agreement (USMCA) of aluminum framework for a canopy
Dear Mr. Lopes:
In your letter dated September 4, 2024, you requested a tariff classification and a country of origin ruling for marking purposes for the aluminum framework for an outdoor canopy. Also, you inquire whether the item is eligible for duty free treatment under the United States-Mexico-Canada (USMCA) Trade Agreement.
The product under consideration is the aluminum framework for a freestanding, outdoor canopy which you refer to as the ShadeFX Structure. In an email to this office, you indicated that the canopy is available in different sizes, SKU #s SFX-F-A-2013 to SFX-F-A-2023. The framework will not be imported with the covering for the canopy. According to your submission, the framework consists of four posts, four corner beams, and a track support beam. The posts and beams are produced from aluminum billets of Turkish origin that are shipped to and extruded in Canada. Other manufacturing operations performed on the aluminum posts and beams in Canada include cutting, tapping holes, welding (base plates to posts), and powder coating. After the work is completed in Canada, the components are packaged with fasteners and then shipped to the United States (U.S.). In the U.S., the framework is assembled, the cover is added, and the completed canopy is attached to a patio, porch, or deck.
The applicable subheading for the aluminum framework will be 7610.90.0080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for aluminum structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminum plates, rods, profiles, tubes and the like, prepared for use in structures: other: other: other. The general rate of duty will be 5.7 percent ad valorem.
USMCA
You inquire whether the aluminum framework/structure is eligible for preferential treatment under the USMCA. The 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, 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, in relevant part:
For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country 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 non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); .
The aluminum framework consisting of the posts and beams is comprised of non-originating materials. Therefore, the framework is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i) and (ii). We must next determine whether the framework qualifies under GN 11(b)(iii). The imported structure is classified in heading 7610, HTSUS. The applicable rule of origin for merchandise classified in heading 7610, HTSUS, is in GN 11(o), HTSUS, which provides, in relevant part:
Chapter 76 (9) A change to headings 7610 through 7613 from any other heading, including another heading within that group.
Aluminum billets classified in heading 7601, HTSUS, are sent to Canada where they are manufactured into the posts and beams. In order to satisfy the rule of origin in GN 11(o), all the non-originating materials/components must meet the tariff shift requirements. This office finds that the non-originating components (i.e., aluminum billets) meet the required tariff shift. Since the non-originating aluminum billets meet the requisite tariff shift, the aluminum framework/structure is considered an originating good and therefore, is eligible for preferential treatment under the USMCA.
Country of Origin
In addition to USMCA eligibility, you are requesting a country of origin determination of the aluminum framework for marking purposes. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
The "country of origin" is defined in 19 CFR 134.1(b) as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the country of origin within the meaning of this part; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin.
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. 102.21. See 19 C.F.R. 102.11. Applied in sequential order, the required hierarchy establishes that the country of origin of a good is the country in which:
(a)(1) The good is wholly obtained or produced;
(a)(2) The good is produced exclusively from domestic materials; or
(a)(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in the cases described above because the imported framework is neither wholly obtained or produced or produced exclusively from domestic materials. Because the analysis of sections 102.11(a)(1) and 102.11(a)(2) does not yield a country of origin determination, we look to section 102.11(a)(3). Pursuant to 19 C.F.R. 102.11(a)(3), the country of origin of a good is the country in which each foreign material incorporated in that good undergoes an applicable change in tariff classification as set forth in 19 C.F.R. 102.20 and satisfies any other applicable requirements of that section.
Based on the facts presented, because the aluminum framework/structure (i.e., posts and beams) imported into the U.S. from Canada is classified in heading 7610, HTSUS, the change in tariff classification must be made in accordance with section 102.20(n), Section XV: Chapters 72 through 83, heading 7606 - 7615, HTSUS, which requires A change to heading 7606 through 7615 from any other heading, including another heading within that group.
In order to satisfy the rule of origin in section 102.20(n), the non-originating materials/components must meet the tariff shift requirements. Based on the information provided, we find that the aluminum billets of Turkish origin which are classified in heading 7601, HTSUS, meet the tariff shift requirement in the rule of origin cited above. Since the non-originating aluminum billets meet the requisite tariff shift, the country of origin for marking purposes is Canada.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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, contact National Import Specialist Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division