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

Article# 766, Comfy Cotton Fetti-JX-562, is a 4-ply yarn stated to be composed of 50 percent acrylic and 50 percent cotton fibers. The yarn is presented in a skein and weighs 100 grams. The yarn is for retail sale and is intended for hand knitting. The country of origin is China.

Due to the fact that yarn Article# 766, Comfy Cotton Fetti-JX-562, is constructed of a 50/50 blend of fibers, it is classified using Harmonized Tariff Schedule of the United States (HTSUS) Section XI Note 2(A) and Subheading Note 2(A). The yarn will be classified as if it consisted wholly of that one textile material which is covered by the heading which occurs last in numerical order among those which equally merit consideration. Acrylic staple fibers are in Chapter 55 and cotton is classified in Chapter 52; therefore, this yarn will be classified as being of synthetic staple fibers. Even a slight change in the fiber content may result in a change of classification. The yarn, Article# 766, may be subject to Customs laboratory analysis at the time of importation, and if the yarn is other than a 50/50 blend it may be reclassified by Customs at that time.

Article# 251, Winter Nights, STO766, is a gimped chainette yarn with small (? inch diameter) irridescent plastic sequins looped onto the chainette core every 2 inches, creating a decorative effect. The chainette yarn is loosely gimped with two spun yarns in opposite directions. The yarn is composed of 65 percent acrylic and 35 percent polyester fibers. The yarn is presented in a cake, weighs 100 grams and is intended hand knitting. The country of origin is China.

In your letter, you suggest that Article# 251, Winter Nights, STO766, may be classified under subheading 5511.20.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for yarn (other than sewing thread) of man-made staple fibers, put up for retail sale; of synthetic staple fibers, containing less than 85 percent by weight of such fibers. We disagree. The yarn meets the definition of gimped yarn and is specifically provided for under heading 5606, HTSUS. Therefore, heading 5511 does not apply.

The applicable subheading for Article# 766, Comfy Cotton Fetti-JX-562, will be 5511.20.0000, HTSUS, which provides for “Yarn (other than sewing thread) of man-made staple fibers, put up for retail sale: Of synthetic staple fibers, containing less than 85 percent by weight of such fibers.” The duty rate will be 7.5 percent ad valorem.

The applicable subheading for Article# 251, Winter Nights, STO766, will be 5606.00.0090, 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: Other.” The rate of duty is 8 percent ad valorem.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 5511.20.0000 and 5606.00.0090, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 5511.20.0000 and 5606.00.0090, HTSUS, listed above.

The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.

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 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 Kim Wachtel at [email protected].

Sincerely,

Steven A. Mack Director National Commodity Specialist Division

© 2014 CustomsMobile | Disclaimer | Privacy | About