CLA-2-56:OT:RR:NC:N3:351

Mr. Brain Kavanaugh
Deringer Logistics Consulting Group
173 West Service Road
Champlain, NY 12919

RE: The tariff classification of stainless steel reinforce yarn from Canada

Dear Mr. Kavanaugh:

In your letter dated September 13, 2016, you requested a tariff classification ruling for your client Filspec, Inc.

The ruling request is for three stainless steel reinforce yarns. You submitted two yarn samples to this office for analysis. The yarns will be imported on industrial cones, none of the yarns meet the tariff definition of “put up for retail sale” found in Section XI, Note 4(b)(iii), Harmonized Tariff Schedule of the United States (HTSUS). The samples were sent to our laboratory division.

The lab analysis for yarn 39849 and 39869 states the following:

Yarn identified as 39849 is composed of 62.7 percent Kevlar/aramid and 37.3 percent steel. It is a core spun yarn, steel yarn at the core surrounded by Kevlar/aramid staple fibers.

Yarn identified as 39869 is composed of 61 percent polyester and 39 percent steel. It is a core spun yarn, steel yarn at the core surrounded with polyester fibers.

Yarn identified as 39970 is composed of 62 percent polyester and 38 percent steel. It is ring spun.

You have suggested classification for the yarn as steel wire in Chapter 72 based on the concept that the steel wire is the essential character of the yarn.  We do not agree.  Essential character is applicable only if the subject material is a composite good in accordance with General Rule of Interpretation (GRI) 3(b), HTSUS.  In this case, the yarn does not conform to the requirements of a composite good since the yarn is specifically provided for as a particular type of yarn with metal in Chapter 56. 

You also suggested classification for the subject yarn as articles of steel in heading 7326, HTSUS.  Heading 7326 covers a wide range of iron or steel articles that are not more specifically provided for elsewhere in the HTSUS.  The yarn under consideration is not classifiable as a composite good in heading 7326 (and therefore subheading 7326.90.8688), HTSUS, because the subject yarn is more specifically provided for in another heading of the HTSUS.

Please note, according to Section XI, Note 2, HTSUS, a yarn that contains any amount of metal is regarded in its entirety as metalized yarn for tariff purposes.

The applicable subheading for yarns 39849, 39869 and 39970 will be 5605.00.9000, HTSUS, which provides for “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: Other.” The rate of duty will be 13.2 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 World Wide Web at https://hts.usitc.gov/current.

This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Adleasia Lonesome via email at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division