CLA-2-52:OT:RR:NC:N3:351

9903.88.03

Ms. Fran Sabatella
Orchard Yarn and Thread Co DBA Lion Brand Yarn
125 Chubb Avenue
Lyndhurst, NJ 07071

RE: The tariff classification of yarns from China and Turkey

Dear Ms. Sabatella:

In your letter dated July 12, 2024, you requested a tariff classification ruling. Samples were provided and sent for laboratory analysis. The samples will be retained for training purposes.

Article 158, Feels Like Cuddles, is a yarn stated to be composed of 100 percent polyester filament fiber. The yarn is for retail sale and is intended for knitting and crocheting. The country of origin is China.

According to U.S. Customs and Border Protection (“CBP”) laboratory analysis, Article 158 is a fancy yarn consisting of a knit chain stitch holding sixteen yarns together. The textured yarn is composed wholly of polyester multifilament fibers with a twist created from producing the fancy yarn. The sample is not a gimped, boucle, chenille, or loop wale yarn. The fibers are not carded, combed, or otherwise processed for spinning. The yarn weighs 154.9 grams and is not considered roving.

Article 159, Feels Like a Dream, is a yarn stated to be composed of 100 percent nylon filament fiber. The yarn is for retail sale and is intended for knitting and crocheting. The country of origin is China.

According to CBP laboratory analysis, Article 159 is a composed wholly of nylon filament fibers. The yarn consists of four single ply yarns that are twisted together to form a four-ply yarn. Each single-ply yarn is a chain stitch/warp knit construction with additional fibers inserted and protruding along the chain stitches. The width of the chain stitches is approximately 1 millimeter and the length of the fibers protruding along one side of the chain stitches is approximately 1 centimeter. Each single ply yarn is considered a chenille yarn. The yarn weighs 101.2 grams and has a linear density of 4792 denier.

Article 161, Feels Like Sherpa, is a yarn stated to be composed of 92 percent acrylic and 8 percent polyester filament fiber. The yarn is for retail sale and is intended for knitting and crocheting. The country of origin is Turkey. According to CBP laboratory analysis, Article 161 is a 3-ply yarn consisting of three components: one 1-ply textured acrylic staple roving yarn that is twisted to a one 1-ply polyester multifilament yarn and a one 2-ply polyester multifilament yarn. The overall fiber content by weight is 92.8 percent acrylic and 7.2 percent polyester. The roving fibers have been carded, combed, and are parallel with a slight twist. The ball of yarn weighs 100.1 grams.

Article 3040, Tom Daley – Made with Love- The Cottony One, is a yarn stated to be 60 percent cotton and 40 percent acrylic staple fiber. The yarn is for retail sale and is intended for knitting and crocheting. The country of origin is China.

According to CBP laboratory analysis, Article 3040 is a cable yarn composed of 58.4 percent cotton and 41.6 percent acrylic staple fiber. The skein of yarn weighs 103.5 grams and has a decitex of 6041.7.

The applicable subheading for Article 158, Feels Like Cuddles, will be 5406.00.1040, HTSUS, which provides for “Man-made filament yarn (other than sewing thread), put up for retail sale: Synthetic filament yarn: Of polyesters.” The rate of duty will be 7.5 percent ad valorem.

The applicable subheading for Article 159, Feels Like a Dream, 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 will be 8 percent ad valorem.

The applicable subheading for Article 161, Feels Like Sherpa, will be 5511.10.0030, HTSUS, 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 or modacrylic.” The rate of duty will be 7.5 percent ad valorem.

The applicable subheading for Article 3040, Tom Daley – Made with Love- The Cottony One, will be 5207.90.0000, HTSUS, which provides for “Cotton yarn (other than sewing thread) put up for retail sale: Other.” The rate of duty will be 5 percent ad valorem.

Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheadings 5207.90.0000, 5406.00.1040, and 5606.00.0090, HTSUS, listed above.

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheadings 5207.90.0000, 5406.00.1040, 5511.10.0030, and 5606.00.0090, HTSUS, listed above.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 5207.90.0000, 5406.00.1040, 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 subheadings 5207.90.0000, 5406.00.1040, and 5606.00.0090, HTSUS, listed above.

The HTSUSA 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.

The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 at https://hts.usitc.gov/.

The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.

This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Kristine Dodge at [email protected].
Sincerely,

(for)
Steven A. Mack
Director
National Commodity Specialist Division