OT:RR:CTF:FTM H311461 MJD
CLASSIFICATION: 5205.12.10; 5206.32.00
Mr. Miguel Aristizabal
Fabricato S. A.
Carrera 50 # 38-320
Bello
Colombia
RE: Modification of NY N304396 and NY N304440; tariff classification of yarn
Dear Mr. Aristizabal,
This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered New York Ruling Letter (“NY”) N304396, issued to you on June 12, 2019, and NY N304440, issued to you on June 17, 2019, regarding the tariff classification of certain yarn from Colombia. In these rulings, CBP determined the yarns were gimped yarns, classified in subheading 5606.00.0010, Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”), which provides for “[g]imped 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: Containing elastomeric filaments.” CBP also found that the yarn in NY N304396 and NY N304440, qualified for preferential tariff treatment under the United States-Colombia Trade Promotion Agreement (“CTPA”).
We have reviewed NY N304396 and NY N304440, and determined that it contains an error pertaining to the classification of the yarn in both rulings. This ruling serves to modify NY N304396 and NY N304440 with regard to the classification of the yarns. CBP’s determination with respect to the preferential tariff treatment of the yarns under the CTPA is not affected by this action.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. No. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed action was published on March 10, 2021, in Volume 55, Number 9, of the Customs Bulletin. One comment was received in response to this notice, supporting CBP’s modification of NY N304396 and NY N304440.
FACTS:
In NY N304396, the yarn is described as follows:
[A] polyurethane elastomeric yarn core covered with either natural, synthetic or artificial fibers or their blends. The yarn is composed of 2-12 percent of polyurethane elastomeric (spandex) fibers and 88 - 98 percent of natural, synthetic or artificial fibers. The gimped yarn is used in the production of fabrics for jeans, sports and outdoor apparel.
In NY N304440, the yarn is described as follows:
[A] blend of polybutylene terephalate (PBT) and polyurethane elastomeric filament yarn core covered with either natural, synthetic or artificial fibers or their blends. The yarn is composed of 4 percent of polyurethane elastomeric (spandex) fibers combined with 16 percent PBT fibers, and 80 percent of natural, synthetic or artificial fibers. The gimped yarn is used in the production of fabrics for jeans, sports and outdoor apparel.
Subsequent to the issuance of NY N304396 and NY N304440, CBP sent samples of the yarns from these two rulings to the CBP New York Laboratory. Laboratory report no. NY20200232, dated April 7, 2020, for the sample submitted with NY N304440, indicated the following regarding the sample:
The sample, a core-spun yarn marked FABRICATO S.A., has a linear density of 581.8 dTex, and is constructed of non-twisted spandex monofilament wrapped with non-bleached cotton fibers that do not appear to be combed or mercerized. There is no apparent evidence of ring or compact spinning.
The overall fiber content by weight:
Percent
Cotton 96.4
Spandex 3.6
. . .
The NY laboratory amended laboratory report no. NY20200232 with the issuance of laboratory report no. NY20200232A, dated May 29, 2020, indicating the following regarding the sample:
The sample, a yarn marked FABRICATO S.A., has a linear density of 581.8 Dtex
or 17.18 Nm.
It is constructed of one spandex monofilament that is wrapped with one multifilament polyester yarn. This spandex/polyester yarn is then wrapped with cotton fibers that do not appear to be combed, bleached or mercerized. There is no apparent evidence of ring or compact spinning.
The overall fiber content by weight:
Percent
Cotton 79.4
Polyester 17.0
Spandex 3.6
. . .
Lastly, CBP laboratory report no. NY20200233, dated April 7, 2020, for the sample submitted with NY N304396, indicated the following regarding the sample:
The sample, a core-spun yarn marked FABRICATO S.A., has a linear density of
401.1 dTex, and is constructed of a non-twisted spandex monofilament wrapped
with unbleached cotton fibers that do not appear to be combed or mercerized.
There is no apparent evidence of ring or compact spinning.
The overall fiber content by weight:
Percent
Cotton 93.8
Spandex 6.2
. . .
ISSUE:
What is the proper classification under the HTSUS for the subject merchandise?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) is made in accordance with the General Rules of Interpretation (“GRI”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.
The 2019 HTSUS provisions under consideration are as follows:
5205 Cotton yarn (other than sewing thread), containing 85 percent or more by weight of cotton, not put up for retail sale.
5206 Cotton yarn (other than sewing thread), containing less than 85 percent by weight of cotton, not put up for retail sale.
5606 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 Harmonized Commodity Description and Coding System Explanatory Notes
(“ENs”) constitute the “official interpretation of the Harmonized System” at the international level. See 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). While neither legally binding nor dispositive, the ENs “provide a commentary on the scope of each heading” of the HTSUS and are “generally indicative of [the] proper interpretation” of these headings. See id.
The EN to 56.06 states in pertinent part, the following:
These products are composed of a core, usually of one or more textile yarns, around which other yarn or yarns are wound spirally. Most frequently the covering threads completely cover the core, but in some cases the turns of the spiral are spaced; in the latter case, the product may have somewhat the appearance of certain multiple (folded), cabled or fancy yarns of Chapters 50 to 55, but may be distinguished from them by the characteristic of gimped yarn that the core does not itself undergo a twisting with the cover threads.
The core of the gimped yarn of this heading is usually of cotton, other vegetable fibres or man-made fibres and the covering threads are usually finer and more glossy (e.g., silk, mercerised cotton or man-made fibres).
Gimped yarns with cores of other materials are not necessarily excluded provided the product has the essential character of a textile article.
Gimped yarns are used as a trimming and also very largely for the manufacture of such trimmings. Some, however, are also suitable for other uses, for example, as buttonhole cord, in embroidery or for tying parcels.
In NY N304396 and NY N304440, CBP classified the yarns in subheading 5606.00.0010, HTSUSA, which provides for “[g]imped 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: Containing elastomeric filaments.” Upon further consideration, we have found this classification to be incorrect and that the yarns are instead classified as cotton core-spun yarns.
CBP has held that gimped yarns and core-spun yarns are different and should be classified in different headings. See NY 866313, dated August 28, 1991 (stating the core spun yarns are not considered to be gimped yarns). Pursuant to EN to 56.06, a gimped yarn consists of a yarn, around which is wrapped spirally another yarn or filament or strip. It is distinguished from a twisted yarn in that the core yarn does not twist with the yarn that is wrapped around it; the surrounding yarn could be unwrapped and the core yarn would remain intact.
Core-spun yarns are often confused with gimped yarns. They differ in that they consist of a core (usually a monofilament or multifilament yarn), around which fibers (not yarns) are wrapped. A common example is a spandex filament core with a wrapping of cotton fibers. Since it is sometimes difficult for the unaided eye to distinguish fibers wrapped around a core from yarn wrapped around a core, it may be necessary to request laboratory analysis to identify such yarns. Core-spun yarns are not classified as gimped yarns but rather as basic yarns in the appropriate provisions in chapters 50-55 (depending on chief weight, generally). See CBP’s Informed Compliance Publication (“ICP”), What Every Member of the Trade Community Should Know About: Classification of Fibers and Yarns under the HTSUS, dated September 2011. The Dictionary of Fiber & Textile Technology also describes core-spun yarn as “a yarn made by twisting fibers around a filament or a previously spun yarn, thus concealing the core.” See Dictionary of Fiber & Textile Technology, 44 (1999).
The difference between gimped yarn and core-spun yarn is that core-spun yarn consist of a core (usually a monofilament or multifilament yarn), around which fibers (not yarns) are wrapped. The laboratory report no. NY20200233, which tested the sample from NY N304396, stated that the yarn is a core spun yarn constructed of 93.8 percent cotton and 6.2 percent spandex, and that the “non-twisted spandex monofilament [is] wrapped with unbleached cotton fibers.” Moreover, the laboratory report stated that the yarn is not bleached, combed, mercerized, or has any evidence of ring or compact spinning. Therefore, based on the laboratory test, we find that the yarn from NY N304396 is a cotton core-spun yarn classified in heading 5205, HTSUS, specifically subheading 5205.12.1000, HTSUSA, which provides for “[c]otton yarn (other than sewing thread), containing 85 percent or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibers: Exceeding 14 nm but not exceeding 43 nm: unbleached, not mercerized.”
Similarly, the amended laboratory report no. NY20200232A for the yarn in NY N304440, states that the yarn, constructed of 79.4 percent cotton, 17.0 percent polyester, and 3.6 percent spandex, has “one spandex monofilament that is wrapped with one multifilament polyester yarn,” and the “spandex/polyester yarn is then wrapped with cotton fibers that do not appear to be combed, bleached or mercerized.” This, like the sample in NY N304396, is in line with the definition of a core-spun yarn. Furthermore, the laboratory report stated that the yarn has “unbleached cotton fibers that do not appear to be combed or mercerized,” and “there is no apparent evidence of ring or compact spinning.” As a result, based on the laboratory test, we find that the yarn in NY N304440 is classified in heading 5206, HTSUS, specifically subheading 5206.32.0000, HTSUSA, which provides for “[c]otton yarn (other than sewing thread), containing less than 85 percent by weight of cotton, not put up for retail sale: Multiple (folded) or cabled yarn, of uncombed fibers: Exceeding 14 nm but not exceeding 43 nm per single yarn (300).”
One comment was received in response to the proposed ruling. The commenter agreed with CBP’s determination to classify the yarn in NY N304440 and NY N304396 as cotton core-spun yarn classified in heading 5206, HTSUS, and heading 5205, HTSUS, respectively. However, the commenter argued that the conclusion made in both NY N304440 and NY N304396, that the yarns are eligible for preferential treatment under the CTPA, has been misapplied and improperly extended to garments made with these yarns. The commenter wants to ensure that CBP distinguishes between the preferential rules of origin for the subject yarns under the CTPA and the preferential rules of origin for garments made from the subject yarns under the CTPA. This comment, however, goes beyond the scope of the initial NY rulings and this decision. This decision only pertains to the classification of the yarns at issue. As stated above, CBP’s determination in NY N304440 and NY N304396 with respect to the preferential tariff treatment of the yarns under the CTPA is not affected by this action. Furthermore, NY N304440 and NY N304396 do not pertain to the preferential tariff treatment of garments under the CTPA.
Accordingly, based on CBP laboratory test results, we find that the yarns in NY N304440 and NY N304396 were incorrectly classified as gimped yarns in heading 5606, HTSUS. Instead, the yarns in NY N304440 and NY N304396 are cotton core-spun yarns classified in heading 5206, HTSUS, and heading 5205, HTSUS, respectively.
HOLDING:
By application of GRI 1 and 6, the yarn in NY N304440 is classified in heading 5206, HTSUS, specifically subheading 5206.32.0000, HTSUSA, which provides for “[c]otton yarn (other than sewing thread), containing less than 85 percent by weight of cotton, not put up for retail sale: Multiple (folded) or cabled yarn, of uncombed fibers: Exceeding 14 nm but not exceeding 43 nm per single yarn (300).” The yarn in NY N304396 is classified in heading 5205, HTSUS, specifically subheading 5205.12.1000, HTSUSA, which provides for “[c]otton yarn (other than sewing thread), containing 85 percent or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibers: Exceeding 14 nm but not exceeding 43 nm: unbleached, not mercerized.”
EFFECT ON OTHER RULINGS:
NY N304396, dated June 12, 2019, and NY N304440, dated June 17, 2019 are hereby MODIFIED in accordance with the above analysis.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
For Craig T. Clark, Director
Commercial and Trade Facilitation Division