The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a tent from Canada; Article 509

N186097 October 4, 2011 CLA-2-63:OT:RR:NC:N3:351 CATEGORY: Classification TARIFF NO.: 6306.22.9030 Jim McKinlay P.T.I. products, Inc. #11-211 Schoolhouse Street Coquitlam, BC V3K 4X9 Canada RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a tent from Canada; Article 509 Dear Mr. McKinlay: In your letter dated Sept. 6, 2011, you requested a ruling on the status of a product known commercially as the Bike Barn, from Canada, under the NAFTA. The Bike Barn is a tent for motorcycles. It is composed of 100% polyester fabric that is coated with polyurethane compact plastic, visible to the naked eye, on one side; this is considered a coated textile fabric of heading 5903, Harmonized Tariff Schedule of the United States (HTSUS). This coated polyester textile fabric will be the exterior surface of the tent to provide water repellency. It is stretched over a galvanized steel tube frame. The tubes extend out from a hub on each side and rotate up or down to open or close the tent over the motorcycle. The tent comes in various sizes to accommodate one or two motorcycles or so-called trikes, and even sidecars. It can also be custom ordered for specific vehicles. The coated polyester textile fabric is manufactured and coated in Taiwan of filament yarns which were produced in Taiwan. The metal frame components are made in the United States. Other minor textile components are made in various other countries (India, Korea, China). The tent is cut, sewn, and assembled in Canada. The applicable tariff provision for the Bike Barn will be 6306.22.9030, HTSUS, which provides for tents: of synthetic fibers: Other, other. The general rate of duty will be 8.8% 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 World Wide Web at http://www.usitc.gov/tata/hts/. General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if-- (i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or (ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that-- (A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or (B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or (iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or (iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because-- (A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or (B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts, provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note. The issue before us is whether the subject tent meets the change in tariff classification described in GN 12(t)/63.4. The required change is stated in the note as follows: A change to headings 6304 through 6310 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6002, 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 NAFTA parties. Chapter Rule 1 for GN 12(t)/63 states the following: For 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. It is the coated textile fabric which determines the tariff classification of the tent and so only it need be considered under this rule. As the Taiwanese fabric from which the tents are made is classifiable in heading 5903, HTSUS, the tent will meet the cited tariff change. Based on the facts provided, the Bike Barn as described above qualifies for NAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 12(b)(ii)(A). The goods will therefore be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). 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 Mitchel Bayer at (646) 733-3102. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division