CLA-2 RR:TC:TE 959329 jb

Stephen J. Leahy, Esq.
Leahy & Ward
63 Commercial Wharf
Boston, Massachusetts 02110

RE: Classification of rayon filament embroidery thread; Section Note 5, Heading 5401; dressed for use as sewing thread

Dear Mr. Leahy:

This is in response to your letter, dated April 24, 1996, on behalf of your client, Filtex, Inc., requesting classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of rayon filament embroidery thread. A sample thread was submitted to this office for examination.

FACTS:

The submitted merchandise consists of 100 percent rayon multifilament yarn which is put up on small bobbins for industrial use as embroidery yarn. Based on a report from our New York Customs laboratory, the subject merchandise is a two-ply continuous multifilament rayon yarn, has a final "Z" twist, has an application of a dressing/finishing of 1.6 percent by weight, and weighs 81.6 grams (yarn and spool together).

You state that the yarns are used in Schiffli embroidery machines rather than sewing machines and that the yarn has not been dressed to prepare the yarn for sewing, but rather bathed in Fibramoll. A "Safety Data Sheet" submitted with your letter shows that Fibramoll is a modified polysiloxane emulsion, "used for imparting a long-lasting springy handle finish to woven and knitted materials made of synthetic, cellulosic fibres, wool and silk". You indicate that in the case of the submitted merchandise, the Fibramoll bath is used to facilitate the winding of the yarn onto the spools. The subject thread is neither texturized nor of high tenacity.

ISSUE:

What is the proper tariff classification for the subject merchandise?

LAW AND ANALYSIS:

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes, taken in order. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI.

Heading 5401, HTSUSA, provides for sewing thread of man-made filaments, whether or not put up for retail sale. Note 5 to Section XI, HTSUSA, states:

For the purposes of headings 5204, 5401 and 5508, the expression "sewing thread" means multiple (folded) or cabled yarn:

(a) Put up on supports (for example, reels, tubes) of a weight (including support) not exceeding 1, 000 g:

(b) Dressed for use as sewing thread; and (c) With a final "Z" twist.

In Fairchild's Dictionary of Textiles, 1967, at 521, sewing thread is defined as:

A variety of yarn, regardless of fiber, which is treated with solid or semi-solid, waxy materials to secure a smooth, compact strand which is quite flexible, but which presents no loose fibers. The yarn is usually plied... Sewing threads are numbered by various systems for size: in one system, number 40 is fairly coarse and would be suitable for sewing slip covers and drapery fabrics; number 60 is finer than 40 and would be used on percale or gingham. The higher the number, the finer the sewing thread.

On January 5, 1996, Note 5(b) to Section XI was supplemented to make clear that sewing thread be dressed for use as sewing thread. The rationale for this change was the possibility that without an explicit statement specifying that sewing thread be dressed for use as such, yarns not intended for the manufacture of sewing thread would be wrongly classified as sewing thread. This would be the case where such yarns met the criteria stipulated in paragraphs (a) and (c) of the Note and contained only a small residue of finishing agents derived from the initial stage of the manufacturing process, rather than from a finishing treatment, such as that found on sewing

thread. Thus, the presence of only a small quantity of finishing agents might lead users to falsely believe that the yarn is dressed and, therefore, fulfilled all three criteria of Note 5 to Section XI. Accordingly, any rulings issued prior to the January 5, 1996, change to Note 5(b) to Section XI, are no longer valid. The submitted thread is put on supports weighing less than 1,000g and features a final "Z" twist. The issue remains whether it is "dressed for use as sewing thread". Although the submitted thread is "dressed", it is not dressed for use as sewing thread. The subject merchandise is not dressed for use as sewing thread, that is for basic repairing and mending; its use will most probably serve for embroidery purposes, that is, embellishment. Accordingly, the subject merchandise is precluded from classification as sewing thread.

HOLDING:

The submitted merchandise is properly classified in subheading 5403.41.0000, HTSUSA, which provides for, artificial filament yarn (other than sewing thread), not put up for retail sale, including artificial monofilament of less than 67 decitex: other yarn, multiple (folded) or cabled: of viscose rayon. The applicable rate of duty is 9.1 percent ad valorem and the quota category is 606.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that your client check, close to the time of shipment, the Status on Current Import Quotas (Restraint Levels) an issuance of the U.S. Customs Service, which is updated weekly and is available at the local Customs office.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, your client should contact the local Customs office prior to importing the merchandise to determine the current applicability of any import restraints or requirements.

Sincerely,

John Durant, Director
Tariff Classification Appeals
Division