CLA-2-55:OT:RR:NC:N3:351
Ms. Roxann Harry-Potter
ALPI Customs Brokerage
70 East Sunrise Highway, Suite 607
Valley Stream, NY 11581
RE: The tariff classification of yarns from China
Dear Ms. Harry-Potter:
In your letter dated August 31, 2021, you requested a tariff classification ruling on behalf of your client, Orchard Yarn & Thread Co. dba Lion Brand Yarn. Samples were provided and sent for laboratory analysis. The samples will be retained for training purposes.
Article #514, Moroccan Nights, is a yarn stated to be composed of 98 percent acrylic and 2 percent polyester. The yarn is for retail sale and is intended for hand knitting.
According to U.S. Customs and Border Protection (“CBP”) laboratory analysis, Article #514 is a 2-ply yarn. Ply 1, comprising 47.1 percent by weight of the yarn, is composed wholly of acrylic staple fibers. Ply 2, comprising 52.9 percent by weight of the yarn is composed of acrylic staple fibers twisted together with a metalized strip with an apparent width of less than 5 millimeters. The fibers are carded or are otherwise processed for spinning, and are parallel with a slight twist. The skein of yarn weighs 125.1 grams.
Article #764, Cotton Candy Blend, is a yarn stated to be composed of 52 percent polyester, 48 percent cotton. The yarn is for retail sale and is intended for hand knitting.
According to CBP laboratory analysis, Article #764 is a 5-ply yarn constructed from two 1-ply cotton yarns comprising 42.9 percent by weight of the yarn, twisted together with a two 1-ply polyester staple yarns comprising 53.3 percent by weight of the yarn, and one 1-ply polyester filament yarn comprising 3.8 percent by weight of the yarn. The ball of yarn weighs 139.6 grams.
Article #175, Warm and Fuzzy, is a yarn stated to be composed of 100 percent polyester. The yarn is for retail sale and is intended for hand knitting.
According to CBP laboratory analysis, Article #175 is a chenille yarn composed wholly of polyester staple fibers. The ball of yarn weighs 140.5 grams.
Article #328, Go for Faux Duo, is a yarn stated to be composed of 50 percent acrylic and 50 percent polyester. The yarn is for retail sale and is intended for hand knitting.
According to CBP laboratory analysis, Article #328 consists of a black yarn and burgundy yarn connected by a knot. The black yarn is a 3-ply chenille yarn constructed of a knit stitch core of polyester filament fibers and pile polyester staple fibers protruding approximately 12 millimeters on two sides. Each ply is twisted together. The burgundy yarn is a 4-ply yarn composed of wholly acrylic staple fibers. The fibers are carded, combed or otherwise processed for spinning. The fibers are parallel with a slight twist and are considered roving slivers. The four roving slivers are twisted together to form a yarn. The overall weight of the yarn is 212.9 grams, with the black chenille yarn comprising 91.2 grams and the burgundy yarn comprising 121.7 grams of the total yarn weight. The overall fiber content by weight is 57.2 percent acrylic and 42.8 percent polyester.
You have suggested that Article #514, Moroccan Nights, should be classified under subheading
5605.00.9000, Harmonized Tariff Schedule of the United States, (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.” We agree. The metallic strips meet the dimensional requirements of textile strips contained in Section XI, Legal Note 1(g), HTSUS. According to the terms of Section XI Note 2(B)(a), yarns that contain any amount of metal are regarded in their entirety as metalized yarn for tariff purposes. The duty rate will be 13.2 percent ad valorem.
You have suggested that Article #764, Cotton Candy Blend, should be classified under subheading 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.” We disagree. The yarn is neither gimped, nor of a chenille or loop wale construction. Article #764, Cotton Candy Blend, is made up of five separate yarns of textile materials from Chapters 52, 54 and 55. In accordance with Section XI, Notes 2(A), 2(B)(b) and 2(B)(c), HTSUS, the sample is classified under Chapter 55.
The applicable subheading for Article #764, Cotton Candy Blend, 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 rate of duty will be 7.5 percent ad valorem.
You have suggested that Article #175, Warm and Fuzzy, should be classified under subheading 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.” We agree. The rate of duty is 8 percent ad valorem.
You have suggested that Article #328, Go for Faux Duo, should be classified under subheading 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.” We disagree. Article #328, Go for Faux Duo, is made up of two separate articles, a black chenille yarn, comprising 91.2 grams and the burgundy roving fiber, comprising 121.7 grams of the total yarn weight, tied together by a knot rather than twisted together. The acrylic fiber predominates by weight over the polyester.
The applicable subheading for Article #328, Go for Faux Duo, 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 rate of duty will be 7.5 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 5605.00.9000, 5606.00.0090, and 5511.20.0000, 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 subheadings 5605.00.9000, 5606.00.0090, and 5511.20.000 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, including information on exclusions and their effective dates, 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 Kristine Dodge at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division