Country of origin determination for a shade sail; 19 CFR 102.21(c)(2)

N350182 July 3, 2025 OT:RR:NC:N3:351 CATEGORY: Origin Mr. Oscar Palacios C.H. Robinson International 180 East Ocean Boulevard Long Beach, CA 90802 RE: Country of origin determination for a shade sail; 19 CFR 102.21(c)(2) Dear Mr. Palacios: In your letter dated June 9, 2025, you requested a country of origin determination on behalf of your client, Gale Pacific USA, Inc. The pet bed will be covered separately under New York Ruling N350678. The shade sail and exterior shade will be addressed herein. Samples of the fabric used in the production of the shade sail and exterior shade along with photographs of both items were provided with your request. SKU# BOM-501020, described as a “RTH Shade Sail,” is designed to be attached to poles over a porch or patio and is intended to provide shade. The shade sail is composed of a 100 percent high density polyethylene (HDPE) warp knit fabric. The sail is folded over and sewn on four sides. The rectangular shaped sail measures 11 feet 10 inches in length by 8 feet in width and features four fabric loops sewn to each corner with a pre-attached 100 percent polyethylene rope inserted through the loop so the shade sail can be hung. The twisted rope is braided between the PE tube and the loop. You have suggested the “RTH Shade Sail,” is classified under Subheading 6307.90.9891, Harmonized Tariff Schedule of the United States (HTSUS). We agree. You state the pertinent manufacturing operations for the shade sail are as follows: Scenario 1: Thailand: • 100 percent HDPE pellets are produced and shipped to China China: • 100 percent HDPE yarn is produced to make fabric. • 100 percent HDPE fabric is knitted and shipped in rolls to Vietnam. • 100 percent HDPE filament thread is produced and shipped to Vietnam. • 100 percent polyethylene rope is produced and shipped to Vietnam. • 100 percent PE tube is produced and shipped to Vietnam Vietnam: • Fabric is cut and sewn. • Rope is cut to size. • Rope is inserted through a polyethylene tube and attached to the fabric. • The shade sail is packaged and shipped to the United States. Scenario 2: Thailand: • 100 percent HDPE pellets are produced and shipped to China. China: • 100 percent HDPE yarn is formed to make fabric. • 100 percent HDPE fabric is knitted and shipped in rolls to Vietnam. • 100 percent PE tube is produced and shipped to Vietnam Vietnam: • 100 percent HDPE filament thread is produced. • 100 percent polyethylene rope is produced. • Fabric is cut and sewn. • Rope is cut to size. • Rope is inserted through a polyethylene tube and rope attached to the fabric. • The finished shade sail is packaged and shipped to the United States. Scenario 3: Thailand: • 100 percent HDPE pellets are produced and shipped to China China: • 100 percent HDPE yarn is formed to make fabric and shipped to Vietnam. • 100 percent polyethylene rope is produced and shipped to Vietnam. • 100 PE tube is produced and shipped to Vietnam. Vietnam: • 100 percent HDPE fabric is knitted. • 100 percent HDPE filament thread is produced. • Fabric is cut and sewn. • Rope is cut to size. • Rope is inserted through a polyethylene tube and attached to the fabric. • The finished shade sail is packaged and shipped to the United States. Scenario 4: Thailand: • 100 percent HDPE pellets are produced and shipped to China. China: • 100 percent HDPE yarn is formed to make fabric and shipped to Vietnam. • 100 PE tube is produced and shipped to Vietnam. Vietnam: • 100 percent HDPE fabric is knitted. • 100 percent polyethylene rope is produced and shipped to Vietnam. • 100 percent HDPE filament thread is produced. • Fabric is cut and sewn. • Rope is cut to size. • Rope is inserted through a polyethylene tube and attached to the fabric. • The finished shade sail is packaged and shipped to the United States. ISSUE: What is the country of origin of the subject merchandise? 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 textiles and apparel products for purposes of the customs laws and the administration of quantitative restrictions, unless otherwise provided by the statute, entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. Section 3592 has been described as Congress’s expression of substantial transformation as it relates to textile and apparel products. Section 102.21 of the Code of Federal Regulations (19 CFR 102.21), implements the URAA. The country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of section 102.21. See 19 CFR 102.21(c). 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 6307.90 is the country, territory, or insular possession in which the fabric comprising the formed by a fabric-making process. The “fabric-making process” is defined in 102.21(b)(2) as follows: A fabric-making process is any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope, or fabric strips and results in a textile fabric. The shade sail is comprised of fabric that is formed by a fabric-making process in a single country, that is China in Scenario 1 and 2 and Vietnam in Scenario 3 and 4. Therefore, the country of origin of the shade sail in Scenario 1 and 2 is China. For Scenario 3 and 4, the country of origin is Vietnam. HOLDING: Pursuant 102.21 (e)(2), the country of origin in Scenario 1 and 2 is China and in Scenario 3 and 4 is Vietnam. Regarding the country of origin of an exterior shade, Section 177.7 of the Customs Regulations (19 C.F.R. §177.7) provides that rulings will not be issued in certain circumstances. Specifically, § 177.7(b) reads, in pertinent part: No ruling letter will be issued with respect to any issue which is pending before the United States Court of International Trade, the United States Court of Appeals for the Federal Circuit or any court of appeal therefrom. As such, CBP will not issue a country of origin ruling with regard to your merchandise at this time. The country of origin determination may be impacted by a court case currently pending in the Court of International Trade. See Lutron Electronics Co. v. United States, CIT No. 22-00264. If you wish, you may resubmit your request for a prospective ruling after the appropriate court case has been resolved. 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. Additionally, we note 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 and Border Protection 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, please contact National Import Specialist Kristine Dodge at kristine.dodge@cbp.dhs.gov. Sincerely, (for) James Forkan Acting Director National Commodity Specialist Division