CLA-2 CO:R:C:T 952957 BC
John Peterson, President
Withrow, Zerwekh & Co.
1241 Watson Center Rd.
P.O. Box 368
Wilmington, CA 90748
RE: Modification of NYRL 850772; tariff classification of
polyester yarn from Taiwan
Dear Mr. Peterson:
The Customs Service has had reason to reexamine the
classification determination in New York Ruling Letter (NYRL)
850772, issued on April 11, 1990, to Ms. Cecelia Castellanos of
your company on behalf of Schermerhorn Bros. Co. That ruling has
been found to be partially in error and is hereby modified in
accordance with the following discussion.
FACTS:
New York Ruling Letter 850772 classified what it described
as "plied nylon and polyester filament yarns from Taiwan." Two
samples were submitted and described as (1) a 12-ply nylon yarn
put up on a cone weighing 5 pounds, and (2) a 5-ply polyester
yarn put up on an 18 pound cone. The ruling further described
the yarns as follows: "Both of the yarns have a final 'Z' twist,
measure less than 10,000 decitex, are made from filament yarns,
and are not high tenacity or textured." (Underlining supplied.)
The ruling classified the nylon yarn under subheading
5402.61.0000, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), and the polyester yarn under subheading
5402.62.0000, HTSUSA. After issuance of the ruling, some of your
client's imports were questioned by Customs officials at Los
Angeles. A lab analysis was performed, revealing the polyester
yarn to consist of staple fibers and thus not to be a filament
yarn. The matter was brought to the attention of the New York
Regional Office which agreed that a mistake had been made in the
original classification in NYRL 850772. That office has concluded that the classification of the polyester yarn should be
under subheading 5509.22.0010, HTSUSA. Consequently, the New
York office has requested a modification of NYRL 850772.
ISSUE:
What is the proper classification of the polyester yarn
consisting of staple fibers that was classified in NYRL 850772 as
a filament yarn under subheading 5402.62.0000, HTSUSA?
LAW AND ANALYSIS:
Under section 177.9(d)(1) of the Customs Regulations, a
ruling letter may be modified or revoked to correct an error in
the classification of merchandise. The regulation requires that
Customs issue a notice of the modification or revocation to the
person to whom the ruling was issued. 19 CFR 177.9(d)(1).
In Customs classification of the polyester yarn at issue, in
NYRL 850772, it was mistakenly believed that the yarn was a
filament yarn. This mistaken belief was based on a reasonable
misinterpretation of the documentation submitted by the importer.
This misunderstanding led to a misclassification of the yarn
under heading 5402, HTSUSA, covering synthetic filament yarn.
Upon reexamination, it has been determined that the yarn is
not a filament yarn, but instead consists of staple fibers. This
fact removes the yarn from classification under Chapter 54,
HTSUSA, covering man-made filaments, including synthetic filament
yarn, and places it under Chapter 55, HTSUSA, covering man-made
staple fibers, including yarn of synthetic staple fibers.
Based on the foregoing, we hereby modify NYRL 850772 to
reflect that the 5-ply polyester yarn there classified under
subheading 5402.62.0000, HTSUSA, is instead classifiable under
subheading 5509.22.0010, HTSUSA, as a yarn of synthetic staple
fibers, not put up for retail sale, containing 85% or more by
weight of polyester staple fibers, multiple (folded) with a final
"Z" twist. The applicable duty rate is 12% ad valorem, and the
applicable quota category is 200.
New York Ruling Letter 850772 remains binding precedent for
classification of the 12-ply nylon yarn there classified under
subheading 5402.61.0000, HTSUSA. The applicable duty rate is
9.1% ad valorem, and the quota category is 606.
HOLDING:
The polyester yarn consisting of staple fibers here at issue
is classifiable under subheading 5509.22.0010, HTSUSA. The
applicable duty rate is 12% ad valorem; the applicable quota
category is 200.
This notice to you should be considered a modification of
NYRL 850772 under 19 CFR 177.9(d)(1). Your request for temporary
relief from application of this ruling will be addressed in a
separate ruling letter.
Sincerely,
John Durant, Director
Commercial Rulings Division