CLA-2 CO:R:C:G 082599 DSN
James F. O'Hara, Esquire
Stein Shostak Shostak & O'Hara
3580 Wilshire Boulevard
Suite 1240
Los Angeles, California 90010-2597
RE: Binding HTSUSA classification of certain yarns of IA 43/86
HLR 080273 of June 18, 1987
Dear Mr. O'Hara:
This is in response to your letters of September 24, 1987
and August 1, 1988, on behalf of your client Jary, Inc., in which
you requested a binding ruling under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA), concerning yarn
that was the subject of IA 43/86, Headquarters Ruling Letter
(HRL) 080273 of June 18, 1987. We are also addressing your
request for an HTSUSA ruling on four additional samples of yarns.
Both requests concern yarns allegedly put up for retail sale.
FACTS:
In IA 43/86 we were asked to give a classification ruling
under the Tariff Schedules of the United States Annotated
(TSUSA), regarding whether certain one pound cones of yarns were
classified under the provisions for yarn put up for handwork,
item 310.93, TSUSA, or as yarn wholly of noncontinuous man-made
fibers, item 310.50, TSUSA. We ruled that the yarn was
classified under item 310.5049, TSUSA, as yarn wholly of
noncontinuous man-made fibers, plied, of acrylic. We also gave a
non-binding HTSUSA classification on these yarns. They were
classified under subheading 5511.10.0030, HTSUSA, which provides
for yarn (other than sewing thread) of man-made staple fibers,
put up for retail sale, of synthetic staple fibers, containing 85
percent or more by weight of such fibers, acrylic.
You then requested reconsideration of the TSUSA
classification. In this reconsideration (HRL 080743 of August
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18, 1987), we confirmed our determination in IA 43/86. We also
noted that under the proposed HTSUSA, the subject yarn would
likely be classified on the basis that it is put up for retail
sale.
On September 24, 1987, you requested a binding HTSUSA
ruling for the IA 43/86 yarn. In the interim, the customhouse
broker for Jary, Inc., requested a binding HTSUSA ruling on
similar yarn as well as other cones of yarns. Our New York
office responded to this request. In its ruling, New York Letter
(NYL) 828937 of June 23, 1988, the yarns in question were
classified under subheadings 5509.32.0000, 5509.69.6000 and
5605.00.0000, respectively, as yarns, of synthetic staple fibers,
not put up for retail sale.
The four additional samples submitted are unsupported spun
man-made fiber, plied yarns. The sample labelled "Capri" is
composed of 70 percent acrylic and 30 percent nylon. According
to our laboratory analysis, it weighs 461 grams and has a decitex
of 3383. The sample labelled "Peluche" is composed of 80 percent
acrylic and 20 percent nylon; it weighs 461 grams and has a
decitex of 4998. The sample labelled "Rayito" is composed of 73
percent acrylic and 27 percent nylon; it weighs 466 grams and has
a decitex of 2662. The sample labelled "Bulky" is composed of
100 percent acrylic; it weighs 475 grams and has a decitex of
5129.
ISSUE:
Whether the yarn which was the subject of IA 43/86 and the
four additional samples are considered yarns put up for retail
sale.
LAW AND ANALYSIS:
Yarns put up for retail sale are provided for in chapters
50, 51, 54 and 55, HTSUSA. Section XI, Note 4(A)(a) and (b)
provides that for the purposes of chapters 50, 51, 52, 54 and 55,
the expression "put up for retail sale" in relation to yarn
means, subject to the exceptions in paragraph (B), yarn (single,
multiple (folded) or cabled) put up:
(a) On cards, reels, tubes or similar supports, of a weight
(including support) not exceeding:
(i) 85 g in the case of silk, waste silk or man-made
filament yarn; or
(ii) 125 g in other cases;
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(b) In balls, hanks or skeins of a weight not exceeding:
(i) 85 g in the case of man-made filament yarn of
of less than 3000 decitex, silk or silk waste;
(ii) 125 g in the case of all other yarns of less
than 2000 decitex; or
(iii) 500 g in other cases.
With respect to the yarn at issue in IA 43/86, Cone A was
described as being of non-continuous man-made fiber, composed of
80 percent acrylic and 20 percent nylon. The cone weighed
approximately one pound and contained about 1091 yards of yarn.
Cone A was packed in a plastic bag which contained a paper label
giving fiber content, yardage, net weight and care instructions.
The yarn was primarily used in producing knitted articles on hand
and electrically-operated knitting machines. Cone B had no label
and was submitted only to show the size of cones sold to
industrial users. No classification of Cone B was requested.
Based on further analysis of Cone A, we have concluded
pursuant to Note 4(A)(a)(ii), that this yarn does not meet the
requirement of yarns put up for retail sale. The yarn was other
than silk, silk waste or man-made filament. It was put up on a
cone or tube and weighed over 125 grams. Therefore, the yarn
cannot be considered to be "put up for retail sale" within its
tariff meaning even though similar yarn put-ups may in fact be
sold at retail.
With respect to the four samples recently submitted, they
too do not fit within the purview of Section XI, note 4(A).
These yarns are not on cards, reels, tubes or similar supports.
As previously stated, they are unsupported cones of spun, plied
yarn. Moreover, these yarns are not put up in balls, hanks or
skeins. According to the Modern Textile & Apparel Dictionary, a
ball is defined as a form of knitting yarn ready for use. A hank
is defined as a skein of reeled yarn. A skein is defined as an
appreciable length of yarn or thread that has been wound onto a
reel or swift from some machine or device.
These yarns are not considered balls because they are not
ready for use, and they are cone shaped instead of being round.
These samples resemble yarns which were initially wrapped on a
cone, the cone was removed, and the yarn ends were tied together
in a manner to keep their cone shape. It appears that the cone
could easily be re-inserted after importation into the United
States. Moreover, the yarns are neither hanks or skeins because
they are not of reeled yarn nor wound onto a reel or swift from
some machine. Since these yarns do not comply with the above
definitions, their weight in grams is irrelevant.
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We note that these samples do not resemble yarns of the
type normally sold at retail. Yarns sold at retail are finished
looking and are ready for immediate use. Yarns at retail have a
flowing motion when the yarn is pulled from the center, unlike
the samples at issue. Commercial reality dictates that yarns be
in that condition. These yarns require further processing in
order to conform with the trade.
HOLDING:
In view of the foregoing, the yarns that were the subject
of IA 43/86 and the four additional samples are classified under
5509.69.60, HTSUSA, which provides for yarn (other than sewing
thread) of synthetic staple fibers, not put up for retail sale,
other yarn, of acrylic or modacrylic staple fibers, other textile
category 607, and dutiable at the rate of 15 percent ad valorem.
This classification decision is under the HTSUSA, effective
January 1, 1989, subject to changes in the law before the
effective date.
Sincerely,
John Durant, Director
Commercial Rulings Division