CLA-2 CO:R:C:T 088557 CRS
Phyllis Richardson
Traffic Manager
Spanco Yarns
P.O. Box 1288
Sanford, N.C. 27330
RE: Gimped yarn; wrapping process. Synthetic filament yarn; air
jet process.
Dear Ms. Richardson:
This is in reply to your letter dated January 16, 1991, in
which you requested a ruling on yarn under Schedule B. Sample
yarn was submitted with your ruling request.
FACTS:
The merchandise at issue consists of four samples of covered
spandex yarns. Three of the yarns are made by what is referred
to as the "conventional method," in which multifilament nylon
yarns are wrapped around a core of synthetic spandex yarn. The
remaining yarn is made by an "air covering" process where
multifilament textured nylon fibers are intermingled with spandex
yarn by means of an air jet.
The yarns are manufactured by Spanco in the United States.
The yarns are not put up for retail sale but are exported for use
in the manufacture of pantyhose. Some of the yarns may
subsequently be returned to the United States.
ISSUE:
What is the classification of the yarns in question under
Schedule B.
LAW AND ANALYSIS:
The yarns in question are manufactured in the United States
and then exported. In some instances, the yarns may be returned
to the United States. General Statistical Note 5, Harmonized
Tariff Schedule of the United States Annotated (HTSUSA), provides
in pertinent part:
Except as noted below, the statistical reporting
numbers for articles classified in chapters 1 through
97 of this schedule may be used in place of comparable
Schedule B numbers on the Shipper's Export Declaration.
Statistical reporting numbers for articles covered by
chapters 98 and 99 of this schedule may only be used on
import entries. Schedule B numbers may not be reported
on import entries in place of HTS numbers.
If returned to the United States, the yarns may be eligible for
duty free treatment under Chapter 98, HTSUSA. However, the
instant ruling is confined to the question of classification
under Schedule B.
Heading 5402, HTSUSA, provides for, inter alia, synthetic
filament yarn (other than sewing thread), not put up for retail
sale. Nylon is a synthetic. Note 1, Chapter 54, HTSUSA;
Explanatory Notes, EN 54.02, 749. The nylon yarn made by the air
covering process is a synthetic filament yarn as described by the
terms of heading 5402 and is not put up for retail sale.
Accordingly, it is classifiable in heading 5402, Schedule B.
Heading 5606, HTSUSA, provides for, inter alia, gimped yarn.
The Explanatory Notes describe gimped yarn in pertinent part as:
[P]roducts composed of a core, usually one or more
textile yarns, around which other yarn or yarns are
wound spirally.
The three yarns produced by the conventional wrapping method are
gimped in that they consist of nylon yarns wrapped around a core
of spandex yarn. Since they are defined by the terms of heading
5606 they are classifiable accordingly. In contrast, the yarn
manufactured by the air jet process consists of nylon fibers
intermingled with spandex yarn.
HOLDING:
The yarns manufactured by the conventional wrapping process
are classifiable in subheading 5606.00.0000, Schedule B, under
the provision 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 yarn manufactured by the air jet process is classifiable
in subheading 5402.31.3000, Schedule B, under the provision for
synthetic filament yarn (other than sewing thread), not put up
for retail sale . . . ; textured yarn; of nylon or other
polyamides, measuring per single yarn not more than 500 decitex;
single yarn.
Sincerely,
John Durant, Director
Commercial Rulings Division