CLA-2 OT: RR: CTF: TCM H249752 ERB/MAB
Ms. Kelly Morrison
Metropolis Customs Brokers
156-15 146th Avenue, Suite 110
Jamaica, NY 11434
RE: Revocation of NY N200641, Modification of NY N244143; Tariff classification of tubular knit cotton yarn measuring more than 20,000 decitex
Dear Ms. Morrison,
This letter is to inform you that U.S. Customs and Border Protection (CBP) has reconsidered New York Ruling Letters (NY) N200641, issued to you January 23, 2012, and NY N244143, issued to you July 24, 2013, each concerning the tariff classification of a knit cotton textile, under the Harmonized Tariff Schedule of the United States (HTSUS). We find them to be in error as regards the tubular cotton knit yarn. One small sample swatch, approximately one inch in length, (2.54 centimeters) was provided to this office.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to revoke NY N200641 and modify NY N244143 was published on May 4, 2016, in Volume 50, Number 23 of the Customs Bulletin. No comments were received in response to this notice.
FACTS:
NY N200641 describes the product at issue as follows:
You submitted a sample of a yarn called Hoooked Zopagetti. It is described as 92% cotton and 8% elastane (spandex). Our examination reveals it to be a knit yarn of a decitex well over 20,000. Legal Note 3(A)(e) to Section XI, Harmonized Tariff Schedule of the United States (HTSUS), states that any cotton yarn of greater than 20,000 decitex is to be classified as twine, cordage, rope or cables in heading 5607, HTSUS.
NY N244143 describes the product at issue as follows:
Style Hoooked Zpagetti is a narrow fabric constructed of 92% cotton and 8% elastane (spandex). (You state that the fiber content may vary. Once again, please note that this ruling only classifies the samples we have received. A different fiber content may result in a different classification.) It curls to the center from the edges and is approximately 10 mm wide, but 30 mm wide when flattened. It comes in a 312-gram hank that measures 50 meters, with a decitex greater than 20,000. The yarn meets the tariff definition [of] cordage found in Section XI, Note 3(A)(3), Harmonized Tariff Schedule of the United States (HTSUS).
Style Hoooked Zpagetti yarn is also sold as part of a craft kit that you indicate contains everything needed to create a handbag. The kit also contains a crocheting hook and/or knitting needles, a handle for the purse made of bamboo, wood or plastic, along with step-by-step instructions.
It is the opinion of this office that the craft kit is a set for tariff purposes. … In the set, the cordage imparts the essential character and thus determines the classification. The applicable subheading for both style Hoooked Zpagetti cordage and Hoooked Zpagetti craft kit will be 5607.90.9000, HTSUS, which provides for “Twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics: Other: Other.”
The remainder of NY N244143 remains intact (e.g. Style Glitter Ribbon, Style Unique, and Style Silk Purse), and the classification of the same is not affected by the instant ruling.
ISSUE:
What is the classification of a tubular knit yarn, described as 92% cotton and 8% elastane, with a decitex over 20,000.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.
The HTSUS classification headings under consideration are as follows:
5606 Gimped yarn, and strip and the like of heading 5404 or 5405, gimped (other than those of heading 5605 and gimped horsehair yarn); chenille yarn (including flock chenille yarn); loop wale-yarn:
5607 Twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics:
Note 2 to Section XI which covers textiles states the following, in relevant part:
Goods classifiable in chapters 50 to 55 or in heading 5809 or 5902 and of a mixture of two or more textile materials are to be classified as if consisting wholly of that one textile material which predominates by weight over each other single textile material.
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The provisions of paragraphs (A)…apply also to the yarns referred to in notes 3, 4, 5 or 6 below.
Note 3 to Section XI states the following, in relevant part:
For the purposes of this section, and subject to the exceptions in paragraph (B) below, yarns (single, multiple (folded) or cabled) of the following descriptions are to be treated as “twine, cordage, ropes and cables.”
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Of other vegetable fibers, measuring more than 20,000 decitex; or
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Exceptions:
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(e) Chenille yarn, gimped yarn, and loop wale-yarn of heading 5606
When interpreting and implementing the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35128 (August 23, 1989).
The General EN to Section XI, which covers textiles, specifically in Section (I) which regards Chapters 50 to 55, is relevant here. Specifically, subsection (B) Yarns, Table 1, which regards the classification of yarns, twine, cordage, rope and cables of textile materials. Table 1 states the following, in relevant part:
Gimped yarn, other than those of headings 51.10 and 56.05, chenille yarn and loop wale yarn [are] in all cases [to be classified in] heading 56.06.
The EN to 56.06 states the following, in relevant part:
(C) LOOP WALE-YARN
Loop Wale-yarn is a tubular yarn made on a circular knitting machine and is 1.5 to 2 mm wide when pressed flat. This yarn is used for making fringes and other textile accessories and for making woven fabrics on conventional warp and weft looms.
The EN to 56.07 states the following, in relevant part:
This heading covers twine, cordage, ropes and cable, produced by twisting or by plaiting or braiding.
Twine, cordage, ropes and cables, not plaited or braided.
Parts (I)(B)(1) and (2) (particularly the Table) of the General Explanatory Note to Section XI set out the circumstances in which single, multiple (folded) or cabled yarns are regarded as twine, cordage, ropes or cables of this heading.
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Twine, cordage, ropes and cables are used as binder twine, for tying packages, towing, loading, etc. Their cross-section is usually round but some (e.g. some transmission cables) have a square, trapezoidal or triangular section. They are normally unbleached, but may be dyed, impregnated to make them rot-proof, formed of different coloured strands, or impregnated, coated, covered or sheathed with rubber or plastics.
It continues:
The heading excludes:
(b) Gimped yarn, chenille yarn and loop wale-yarn of heading 56.06.
The rulings at issue here relied on Note 3(A)(e) to Section XI, to classify yarn of vegetable fiber which is more than 20,000 in decitex, as twine, cordage, ropes and cables. While the subject textile is cotton of the requisite decitex it is not produced by twisting, plaiting or braiding, as is the case with twine, cordage, ropes and cables. And further, pursuant to the EN 56.07 the subject cotton yarn is not manufactured as binder twine for tying packages, towing, or loading. Rather, it is a knitted yarn. Therefore it is not described by the tariff terms of heading 5607, HTSUS.
The subject textile is 98% cotton and 2% elastene. It is a knit tubular yarn which features successive interlocking loops. This is called loop wale-yarn. The General EN to Section XI, Section (I), Subsection (B) Yarn, Table 1 directs that loop wale-yarn is, “in all cases” to be classified in heading 5606, HTSUS.
This classification comports with the Informed Compliance Publication, entitled, “What Every Member of the Trade Community Should Know About: Classification of Fibers and Yarns under the HTSUS” (published in September 2011). Therein, CBP clarifies that “Loop Wale-Yarn” is described as a textile created by knitting a fabric that is narrow enough to have the appearance of a yarn, with successive interlocking loops typical of knit construction. The ICP further cites the ENs, which state that in all cases, it is to be classified in heading 5606, HTSUS, and is excluded from classification in heading 5607, HTSUS, under the EN 56.07(1)(b).
HOLDING:
By application of GRI 1, the subject Hoooked Zpagetti tubular knit yarn is classified in heading 5606, HTSUS. It is specifically provided for under subheading 5606.00.0010, HTSUSA (Annotated), which provides for, “Gimped yarn, and strip and the like of heading 5404 or 5405, gimped (other than those of heading 5605 and gimped horsehair yarn); chenille yarn (including flock chenille yarn); loop wale-yarn: Containing elastomeric filaments.” The column one, general rate of duty is 8% ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N200641, dated January 23, 2012, is hereby REVOKED, and NY N244143, dated July 24, 2013, is hereby MODIFIED, in regard to style Hoooked Zpagetti yarn contained in a craft kit.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division