CLA 2-RR:NC:N3:351 K81242
Joanne Burke
Willson International, Inc.
One Heritage Place
Southgate, MI 48195
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of yarn kits from Canada; Article 509
Dear Ms. Burke:
In your letter dated Nov. 14, 2003, you requested a ruling, on behalf of your client, Spinrite Inc., of Canada, on the status of four yarn kits from Canada under the NAFTA.
You submitted four packages of yarns. Each is labeled “Cool Scarf Kit” and contains three balls of two different yarns. The label of each says that instructions are included, but we did not receive them; for purposes of this ruling we shall assume they will be present in the imported product.
Kit 421001contains two 50-gram balls of Bernat Boa, a 100% polyester yarn that you state is made in Taiwan, and one 140-gram ball of Bernat Soft Boucle, 98% acrylic, 2% polyester.
Kit 421002 contains two 50-gram balls of Bernat Boa, and one 113-gram ball of Bernat So Soft, a 100% acrylic yarn.
Kit 421003 contains two 50-gram balls of Bernat Eyelash, a 100% nylon yarn that you state is made in Turkey, and one 140-gram ball of Bernat Soft Boucle, 98% acrylic, 2% polyester.
Kit 421004 contains two 50-gram balls of Bernat Eyelash and one 113-gram ball of Bernat So Soft, a 100% acrylic yarn.
The acrylic yarns, Soft Boucle and So Soft, are made from acrylic fibers that you state are imported from the United Kingdom and spun into yarn in Canada.
CLASSIFICATION:
Bernat Boa appears to be identical to a yarn you sent us and we ruled on in our ruling letter J86687, dated July 25, 2003. In that case it was a component of a twisted yarn called Allure and it was described as follows:
Part A is a 150 denier, 100% polyester filament yarn which is made into a tape shape and cut down the middle to form eyelash yarns each having a width of 12mm including fringe and edge.
This yarn was considered in that ruling to be a chenille yarn, and we will classify it as such here, as it is akin to one of the chenille yarns mentioned in the Explanatory Note (EN) to heading 5606:
It is usually manufactured . . . by cutting up special leno fabric; . . . after the fabric has been cut along either side of each group of warp threads, it is these warp threads (ground and crossing threads) which serve as support in the chenille yarn, and the weft which forms the pile.
The applicable tariff provision for the polyester yarn, Bernat Boa will be 5606.00.0090, HTS, which provides for chenille yarn, other. The general rate of duty in 2003 will be 8.4 percent ad valorem; in 2004 it will be 8%.
Bernat Soft Boucle, 98% acrylic, 2% polyester, is a multifilament yarn with the filaments bunched into randomly placed “slubs,” creating the boucle effect. The slubs are held in place by a second yarn that winds its way along the boucle. A simple desk test reveals the decitex of the completed yarn to be over 5,000; thus, this ball, weighing 140 grams, meets the tariff definition of “put up for retail sale.”
The applicable tariff provision for Bernat Soft Boucle will be 5406.10.0020, HTS, which provides for man-made filament yarn (other than sewing thread), put up for retail sale, synthetic filament yarn, of acrylic. The general rate of duty in 2003 will be eight percent ad valorem. In 2004, it will be 7.5%.
Bernat Eyelash, a 100% nylon yarn, is a chenille yarn apparently constructed in a similar fashion as Boa, but with longer chenille yarns. The applicable subheading for Eyelash will also be 5606.00.0090, HTS, which provides for chenille yarn, other. The general rate of duty in 2003 will be 8.4 percent ad valorem; in 2004 it will be 8%.
Bernat So Soft is a twisted, multifilament, 100% acrylic yarn. Again, we have determined the decitex to be approximately 5,000, and so the 140gm balls are considered to be put up for retail sale.
The applicable tariff provision for Bernat So Soft will be 5406.10.0020, HTS, which provides for man-made filament yarn (other than sewing thread), put up for retail sale, synthetic filament yarn, of acrylic. The general rate of duty in 2003 will be eight percent ad valorem. In 2004, it will be 7.5%.
Each knitting kit consists of at least two different articles that are, prima facie, classifiable in different headings (5406 and 5606). The kits consist of articles put up together to carry out a specific activity (in this case, knitting a specific scarf according to the provided instructions). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the kits in question are within the tariff definition of "goods put up in sets for retail sale" found in EN X to General Rule of Interpretation 3(b), HTS.
In accordance with GRI 3(b), sets are to be classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article.
We have determined that in each case, the essential character of the kit is determined by the two balls of the fancier yarn, despite the fact that there is less of it by weight than the larger ball of the plainer yarn. We believe that the fancier yarn serves the purpose of individualizing the finished scarf, of giving it its essential character.
In the case of kits 421001 and 421002, that yarn is Bernat Boa; in the case of kits 421003 and 421004, it is Bernat Eyelash. Thus, the classification of all the kits is in subheading 5606.00.0090, HTS.
NAFTA ELIGIBILITY
None of the sets that are classifiable in heading 5606 will qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/56, HTS, which requires, in pertinent part, a change to heading 5606 from any other chapter. Specifically, because the Boa and Eyelash yarns are already classifiable in chapter 56, the necessary change does not occur in a NAFTA country.
Your letter does not give us enough information to determine the country of origin of the yarns. To make these determinations, we need to know the origin of the components of each yarn. You state that the Boa is made in Taiwan, Eyelash is made in Turkey, and the others are spun in Canada from fibers imported from the United Kingdom. Please tell us where the filaments are extruded and where any other processes involved in manufacturing these yarns are performed.
HOLDING
The yarn kits do not qualify for preferential treatment under the NAFTA. All of the kits are classified in subheading 5606.00.0090, HTS.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
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, contact National Import Specialist Mitchel Bayer at 646-733-3102.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, Bureau of Customs and Border Protection, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division