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April 8, 1999

CLA-2-63:RR:NC:TA:352 D88393

CATEGORY: CLASSIFICATION

TARIFF NO.: 6306.22.9030

Mr. Harvey B. Fox
Adduci, Mastriani & Schaumberg
1200 Seventeenth Street
Washington, D.C. 20036

RE: The tariff classification, country of origin and status under the North American Free Trade Agreement (NAFTA), of portable shelters of woven fabric from Mexico; Article 509

Dear Mr. Fox:

In your letter dated March 2, 1999, on behalf of your client Custom Tailored Manufacturing, you requested a ruling on the status of portable shelters from Mexico under the NAFTA.

The portable shelters are manufactured from one of two types of woven fabric. The first type of fabric is identified as 250 denier white coated fabric. This product is plain woven and composed of 100% filament polyester. It is unbleached or bleached and is constructed with 250 denier filament yarns in both the warp and filling. Weighing approximately 144 g/m2, this product will be manufactured in 152 centimeter widths. The fabric has been coated on one side with coating of polyurethane plastic that is visible to the naked eye. This plastic coating represents approximately 23% of the weight of the fabric. The second type of fabric from which the portable shelter will be manufactured is identified as 150 denier blue coated fabric. This item is a dyed plain woven fabric composed of 100% filament polyester. It is constructed using 150 denier filament yarns in both the warp and filling. Weighing 105.5 g/m2, this item will be manufactured in 152 centimeter widths. The fabric has been coated on one side with polyurethane plastic which weighs approximately 23% of the weight of the fabric and is visible to the naked eye.

Both the fabrics, used in the production of different styles of the portable shelters, will be both woven and coated in an unidentified Asian country. They will be purchased by the importer of the shelter and shipped to the importer’s facility in Mexico where the fabric will be cut and sewn and incorporated along with United States produced trimmings into the canopy for the portable shelters. After the canopy is manufactured, it will be shipped to the United states where it will be combined with various structural supports whose function is to support the canopy. These portable shelters are similar to a gazebo or dining canopy and consist of a fabric canopy supported by four poles. The shelters have no sides or floor and are designed to protect occupants from the sun and rain in a backyard or camp setting.

The first step in classifying this product is determining whether the fabrics from which the canopy is constructed are considered textile fabric materials or plastic materials. Note 2 to Chapter 59, Harmonized Tariff Schedule of the United States, (HTS), defines the scope of heading 5903, under which textile fabrics which are coated, covered, impregnated, or laminated with plastics are classifiable. In addition, it provides guidance on the classification of combinations of textile and plastics. Note 2 states in part that heading 5903, HTS, applies to:

(a) Textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square meter and whatever the nature of the plastic material (compact or cellular), other than:

(1) Fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually chapters 50 to 55, 58 or 60): for the purposes of this provision, no account should be taken of any resulting change in color;

(2) Products which cannot, without fracturing, be bent manually around a cylinder of a diameter of 7 mm, at a temperature between 15 C and 30 C (usually chapter 39)

(3) Products in which the textile fabric is either completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of color (chapter 39);

Since the coating on this fabric is visible to the naked eye on one side of the fabric, it is considered a coated fabric for the purposes of classification in heading 5903, HTS, because it is coated with compact plastic and is not otherwise excluded by Note 2 to Chapter 59. Consequently, the fabrics from which the portable shelters are made are considered textile fabrics and the shelters textile articles.

The applicable tariff provision for the canopies for both shelters (those made from the blue and the white fabrics) will be 6306.22.9030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for tents, of synthetic fibers, other, other. The general rate of duty will be 7 percent ad valorem.

Since the only non-originating materials used to produce the shelters are the Asian produced fabrics which we have determined to be classifiable in heading 5903, HTS, we must determine whether these materials have undergone a change in tariff classification as mandated in General Note 12(b)(ii)(A). Each of the non-originating materials used to make the portable shelters has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/63. The portable shelters will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that "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 that "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 that "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

6301-6306 The country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process

For the purpose of analyzing whether paragraph C(2) applies to the situation before us for consideration, we will presume that the United States manufactured trimming that was incorporated into the shelters represents less than 7% by weight of the goods. Based on this, in accordance Section 102.13 of the Customs Regulations, such material shall be disregarded in determining the country of origin of the good. Consequently, as the fabric comprising this good was produced by a fabric-making process in a single country, that is, an unidentified Asian country, as per the terms of the tariff shift requirement, country of origin would appear to be conferred in that Asian country. However, since we have determined that the portable shelters are originating goods within the meaning of Section 181.1 (q) of the Customs Regulations and are determined not to be goods of a single NAFTA country under Section 102.21 of the Customs Regulations, then Section 102.19 C.R. instructs that the country of origin of the good is the last NAFTA country in which that good underwent production other than minor processing, provided that a Certificate of Origin has been completed and signed for the good. Consequently the country of origin for the portable shelters is Mexico.

HOLDING:

The portable shelters are both classifiable in subheading 6306.22.9030 which provides for tents of synthetic fibers, other, other. The country of origin of the portable shelters is Mexico. The portable shelters are eligible for a free rate of duty under the NAFTA. They are not subject to quota restraints or visa restrictions.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.

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 Alan Tytelman at 212-637-7092.

Sincerely,

Robert B. Swierupski
Director,

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