OT:RR:CTF:FTM H308558 TSM
Ms. Roxann Harry-Potter
ALPI USA Inc.
70 East Sunrise Highway, Suite 607
Valley Stream, NY 11581
RE: The tariff classification of certain specialty yarns
Dear Ms. Harry-Potter,
This is in response to your request, on behalf of Orchard Yarn, for a ruling regarding the tariff classification of certain specialty yarns under the Harmonized Tariff Schedule of the United States (“HTSUS”).
FACTS:
The merchandise at issue consists of certain specialty yarns, identified as: (1) Article # 508: Date Night – HT-2143 (hereinafter “Article # 508”); and (2) Article # 768: Sponge Cake – JX-596 Oak Yarn (hereinafter “Article # 768”). You state that Article # 508 is composed of 82% acrylic and 18% metallic polyester. It is a yarn knit from two types of yarn: (i) spun acrylic single yarns, of which there are two; and (ii) a metallic polyester monofilament. When flattened, Article # 508 is about 2 mm wide. It is commercially referred to as a “yarn,” is presented for sale in a cake weighing 100 grams, and is intended for sale as a hand knitting yarn.
A sample of the subject merchandise was sent to a U.S. Customs and Border Protection (“CBP”) Laboratory for testing. The results, reported in a CBP Laboratory Report # NY20200539, state that the tested sample is composed of a tubular knit stitch, the average width of which in its flattened state is 2.374 millimeters ± 0.137 millimeters. Weight percentage of the yarn is determined to be 82% acrylic and 18% metallized fibers.
With regard to Article # 768, you state that it is composed of 81% cotton and 19% nylon. The yarn is made of 100% cotton and consists of a core of six two-ply yarns. The bundle is sheathed within a 100% nylon single filament, open work, knit tubular fabric. When flattened, Article # 768 is about 4 mm in width. It is commercially referred to as a “yarn,” is presented in a cake weighing 80 grams, and is intended for use as a hand knitting yarn.
Images of both Article # 508 and Article # 768 have been provided to this office.
ISSUE:
What is the tariff classification of the specialty yarns under consideration?
LAW AND ANALYSIS:
Classification decisions under the HTSUS are made in accordance with the General Rules of Interpretation (“GRIs”). 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 2 through 6 may then be applied in order.
GRI 2 provides in pertinent part as follows:
Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3.
GRI 3 states that, when by application of GRI 2(b) goods are prima facie classifiable under two or more headings, classification shall be effected as follows:
...when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods… those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
Mixtures, composite goods consisting of different materials or made up of different components, ...which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
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Note 4 to Section XI provides as follows:
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) below, yarn (single, multiple (folded) or cabled) put up:
On cards, reels, tubes or similar supports, of a weight (including support) not exceeding:
85 g in the case of silk, waste silk or man-made filament yarn; or
125 g in other cases;
In balls, hanks or skeins of a weight not exceeding:
85 g in the case of man-made filament yarn of less than 3,000 decitex, silk or silk waste;
125 g in the case of all other yarns of less than 2,000 decitex; or
500 g in other cases;
In hanks or skeins comprising several smaller hanks or skeins separated by dividing threads which render them independent one of the other, each of uniform weight not exceeding:
(i) 85 g in the case of silk, waste silk or man-made filament yarn; or
(ii) 125 g in other cases.
In addition, in interpreting the HTSUS, the Explanatory Notes (“ENs”) of the Harmonized Commodity Description and Coding System may be utilized. The ENs to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
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EN to GRI 2(b) states the following:
(XIII) As a consequence of this Rule, mixtures and combinations of materials or substances, and goods consisting of more than one material or substance, if prima facie classifiable under two or more headings, must therefore be classified according to the principles of Rule 3.
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EN to GRI 3(b) provides, in pertinent parts, the following:
(VIII) The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.
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General EN to Section XI provides in relevant part as follows:
CHAPTERS 50 TO 55
Chapters 50 to 55 each deal with one or more textile materials, alone or mixed, at their various stages of manufacture, up to and including their conversion into woven fabrics as described in Part (I)(C) below. They cover, in most cases, the raw material, recovered waste (including garnetted stock but not unpulled rags), carded or combed fibres in the form of slivers, rovings, etc., yarns and woven fabrics.
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(B) Yarns
(1) General.
Textile yarns may be single, multiple (folded) or cabled. For the purposes of the Nomenclature:
(i) Single yarns means yarns composed either of:
(a) Staple fibres, usually held together by twist (spun yarns); or of
(b) One filament (monofilament) of headings 54.02 to 54.05, or two or more filaments (multifilament) of heading 54.02 or 54.03, held together, with or without twist (continuous yarns).
(ii) Multiple (folded) yarns means yarns formed from two or more single yarns, including those obtained from monofilaments of heading 54.04 or 54.05 (twofold, threefold, fourfold, etc. yarns) twisted together in one folding operation. However, yarns composed solely of monofilaments of heading 54.02 or 54.03, held together by twist, are not to be regarded as multiple (folded) yarns.
The ply (“fold”) of a multiple (folded) yarn means each of the single yarns with which it is formed.
(iii) Cabled yarns means yarns formed from two or more yarns, at least one of which is multiple (folded), twisted together in one or more folding operations.
The ply (“fold”) of a cabled yarn means each of the single or multiple (folded) yarns with which it is formed.
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However, Chapters 50 to 55 do not include:
Rubber thread, textile covered, and textile yarns impregnated (including dipped), coated, covered or sheathed with rubber or plastics, of heading 56.04.
Metallised yarn (heading 56.05).
Gimped yarn, chenille yarn and loop wale yarn (heading 56.06).
Braided textile yarns (heading 56.07 or 58.08, as the case may be).
Textile yarns reinforced with metal thread (heading 56.07).
Yarns, monofilaments or textile fibres laid parallel and bonded with an adhesive (bolduc) (heading 58.06).
Textile yarns laid parallel and agglomerated with rubber of heading 59.06.
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TABLE I
Classification of yarns, twine, cordage, rope and cables of textile material.
Type (*)
Characteristics determining classification
Classification
Of metallised yarn
In all cases
Heading 56.05
Gimped yarn, other than those of headings 51.10 and 56.05, chenille yarn and loop wale yarn
In all cases
Heading 56.06
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EN to heading 5605 provides in relevant part as follows:
This heading covers:
Yarn consisting of any textile material (including monofilament, strip and the like and paper yarn) combined with metal thread or strip, whether obtained by a process of twisting, cabling or by gimping, whatever the proportion of the metal present. The gimped yarns are obtained by wrapping metal thread or strip spirally round the textile core which does not twist with the metal. Precious metals or plated metals are frequently used.
Yarn of any textile material (including monofilament, strip and the like, and paper yarn) covered with metal by any other process. This category includes yarn covered with metal by electro deposition, or by giving it a coating of adhesive (e.g., gelatin) and then sprinkling it with metal powder (e.g., aluminium or bronze).
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EN to heading 5606 provides in relevant part as follows:
The heading excludes:
Gimped horsehair yarn (heading 51.10).
Rubber thread gimped with textiles (heading 56.04).
Gimped metallised yarn (heading 56.05).
Milanaise and similar cords and other gimped textile products of heading 58.08.
Gimped metal wire, e.g.:
Iron or steel wire for the manufacture of hat frames (milliners’ wire) and stems of iron or steel wire for artificial flowers or hair curlers (heading 72.17).
(ii) Insulated electric wire (heading 85.44).
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(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.
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The 2020 HTSUS provisions under consideration are as follows:
5207 Cotton yarn (other than sewing thread) put up for retail sale
* * *
5605 Metalized yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal
* * *
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
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Article # 508
Consistent with General EN 1 to Section XI, HTSUS, textile yarns of Chapters 50 to 55, HTSUS, may be single, multiple (folded), or cabled. The yarn at issue, however, is knit from two single acrylic yarns and a metallic polyester monofilament – a construction that does not describe the yarns of Chapters 50 to 55, HTSUS. Upon review, we find that the yarn under consideration is classified under Chapter 56, HTSUS. Specifically, at issue is whether it is classified under heading 5605, HTSUS, as a “metalized yarn,” or under heading 5606, HTSUS, as a “loop wale-yarn.”
With regard to heading 5605, HTSUS, we note that the EN to this heading provides in relevant part that this heading covers “[y]arn consisting of any textile material … combined with metal thread or strip, whether obtained by a process of twisting, cabling or by gimping…” Upon review of the yarn at issue, we find that it is not formed by any of the referenced methods, but is formed by knitting. Accordingly, we find that this yarn is not a metalized yarn of heading 5605, HTSUS, and is not classified under this heading.
Turning to heading 5606, HTSUS, we note that the EN to this heading provides in relevant part that “gimped metallised yarn” is excluded from the heading. Consistent with the discussion above, we note that although the yarn at issue contains 20% metallic fibers, it is knitted rather than gimped. Accordingly, the referenced exclusion does not apply in this case.
EN to heading 5606 further provides, in relevant part, that “[l]oop wale-yarn is a tubular yarn made on a circular knitting machine and is 1.5 to 2 mm wide when pressed flat.” Similarly, in a September 2011 Informed Compliance Publication (“ICP”) on Classification of Fibers and Yarns under the HTSUS, CBP defined “loop wale-yarn” as follows:
Loop wale-yarn, sometimes known as “chainette” or “loop and wale” yarn, is created by knitting a fabric that is narrow enough to have the appearance of a yarn. Close examination reveals the successive interlocking loops typical of knit construction. It is covered by HTS 5606. The Explanatory Note to 5606 refers to it as loop wale-yarn and describes it as “a tubular yarn made on a circular knitting machine [that] is 1.5 to 2 mm wide when pressed flat.”
Upon review, we find that the yarn at issue is a tubular knit yarn with successive interlocking loops and therefore meets the above definitions of loop wale-yarn. CBP Laboratory Report # NY20100528 also supports this determination, indicating that the tested sample was composed of a tubular knit stitch. Although, according to the CBP Laboratory Report, the yarn at issue is 2.374 mm ± 0.137 mm wide when pressed flat, we note that in several prior rulings CBP determined that loop wale-yarns wider than 2 mm in the flattened state are classified under heading 5606, HTSUS. See New York Ruling Letter (“NY”) J80810, dated March 6, 2003 (classifying tubular knit construction yarns approximately 3-4 mm in width under subheading 5606.00.00, HTSUS); NY N287262, dated July 11, 2017 (classifying a tubular knit yarn measuring approximately 23 mm in width, when pressed flat, under subheading 5606.00.00, HTSUS); and, Headquarters Ruling Letter (“HQ”) H249752, dated August 24, 2016 (classifying a tubular cotton knit yarn measuring approximately 30 mm wide, when pressed flat, under subheading 5606.00.00, HTSUS).
Based on the foregoing, we conclude that the yarn at issue is classified under heading 5606, HTSUS, and specifically under subheading 5606.00.00, HTSUS, 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.”
Article # 768
Article # 768 is composed of a 100% cotton component, amounting to 81% of the total article, and a 100% nylon component, amounting to 19% of the total article. Upon review, we find that the cotton component, consisting of the core of six two-ply yarns made 100% of cotton and amounting to 81% of the total article, is classified under heading 5207, HTSUS, and specifically under subheading 5207.90.00, HTSUS, which provides for “Cotton yarn (other than sewing thread) put up for retail sale: Other.” We find that this determination is consistent with Note 4(A)(b) to Section XI, which provides in relevant part that “For purposes of chapters 50, 51, 52, 54 and 55, the expression ‘put up for retail sale’ in relation to yarn means, … yarn (single, multiple (folded) or cabled) put up: … (b) In balls, hanks or skeins of a weight not exceeding: (i) 85 g in the case of man-made filament yarn of less than 3,000 decitex, silk or silk waste; (ii) 125 g in the case of all other yarns of less than 2,000 decitex; or (iii) 500 g in other cases.” We note that the yarn at issue is imported in cakes of 80 grams. Although Note 4(A)(b) to Section XI does not specifically reference yarn in cake form, it has been CBP’s position that yarn cakes are similar to yarn hanks or skeins as they all generally do not have supports. See NY N303181, dated March 25, 2019 (classifying a yarn imported in cake form under heading 5207, HTSUS). See also NY N303582, dated April 19, 2019 (classifying yarns imported in cake form under heading 5109, HTSUS, which provides for “Yarn of wool or of fine animal hair, put up for retail sale”), and NY N303583, dated April 19, 2019 (classifying a yarn imported in cake form under heading 5511, HTSUS, which provides for Yarn (other than sewing thread) of man-made staple fibers, put up for retail sale).
With regard to the nylon component, made of 100% nylon and amounting to 19 % of the total article, we find that it is classified under heading 5606, HTSUS, and specifically under subheading 5606.00.00, HTSUS, 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.” Because the nylon component is made of knit tubular fabric with successive interlocking loops, we find that this determination is consistent with the definition of loop wale-yarn found in the EN to heading 5606, which provides in relevant part that loop wale-yarn is “tubular yarn made on a circular knitting machine.” In addition, the nylon component fits the specific description of the “loop wale-yarn” found in the CBP ICP entitled “Classification of Fibers and Yarns under the HTSUS,” referenced above, which provides in relevant part that “loop wale-yarn” is created by knitting a fabric that is narrow enough to have the appearance of a yarn, with successive interlocking loops typical of knit construction.
GRI 2(b) states, in pertinent part, that the classification of goods consisting of more than one material or substance shall be made according to the principles of GRI 3. As discussed above, these different materials or components include the core of six two-ply yarns made 100% of cotton and classified under heading 5207, HTSUS, and a 100% nylon component, classified under heading 5606, HTSUS. Therefore, Article #768 at issue is considered a composite good, made up of different components, which are attached to each other to form a practically inseparable whole within the meaning of GRI 3(b). Under GRI 3(b), the merchandise must be classified as if it consisted of the component which gives the merchandise its essential character. The term “essential character” is not defined within the HTSUS, GRIs or ENs. However, EN VIII to GRI 3(b) gives guidance, stating that: “[T]he factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the good.” See also The Home Depot v. United States, 427 F. Supp. 2d 1278, 1293 (Ct. Int’l Trade 2006). With regard to the component which imparts the essential character, the Court of International Trade has stated that it is “that which is indispensable to the structure, core or condition of the article, i.e. what it is.” A.N. Deringer, Inc. v. United States, 66 Cust. Ct. 378, 383 (1971).
Upon review and consistent with EN VIII to GRI 3(b), we find that the essential character of Article # 768 is determined by the cotton component, because it is the core component that is indispensable to the article’s structure, which also accounts for 81% of the article. We find that the role of the nylon component is ancillary to that of the cotton component. Accordingly, we conclude that Article #768 is classified under heading 5207, HTSUS, and specifically under subheading 5207.90.00, HTSUS, which provides for “Cotton yarn (other than sewing thread) put up for retail sale: Other.”
HOLDING:
By application of GRI 1 and 6, the specialty yarns at issue are classified as follows:
Article # 508 is classified under heading 5606, HTSUS, and specifically under subheading 5606.00.00, HTSUS, 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.” The 2020 general, column one rate of duty is 8 percent ad valorem.
Article # 768 is classified under heading 5207, HTSUS, and specifically under subheading 5207.90.00, HTSUS, which provides for “Cotton yarn (other than sewing thread) put up for retail sale: Other.” The 2020 general, column one rate of duty is 5 percent 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 the internet at www.usitc.gov/tata/hts/.
A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Yuliya A. Gulis, Chief Food, Textiles and Marking Branch