CLA-2-54:S:N:N6:351 814434
Mr. P. Todd Fredette
A.N. Deringer Inc.
173 West Service Road
Champlain, NY 12919
RE: The tariff classification and status under the North
American Free Trade Agreement (NAFTA), of textured nylon
yarn from Canada; Article 509
Dear Mr. Fredette:
In your letter dated August 29, 1995 you requested a ruling
on behalf of Finlay Products Limited, on the status of textured
nylon yarn from Canada under the NAFTA. You have enclosed a
letter dated June 29, 1995 from the Canadian seller Finlay
Products Limited, and a letter dated July 10, 1995 from NSO
Resins Incorporated, the United States user of this yarn.
You have also enclosed a two-pound spool of single-ply 100%
nylon textured yarn, which Finlay and NSO both refer to as
"solution-dyed nylon BCF." Finlay's letter states that this yarn
is "from a Canadian producer;" we will assume for purposes of
this ruling that this means that the yarn was extruded and
textured in Canada, and that all subsequent processes occurred in
Canada.
Finlay's letter states that this yarn is "culled out of
shipments from a Canadian producer and represents the quantity
that we cannot sell as yarn due to specific colours, quality
defects, small packages etc." The letter also states that "NSO
Resins take(s) the yarn off the tube, and melt(s) the resultant
product to reform resin pellets that are sold to the injected
moulded plastic market."
Finlay suggests that this yarn should be classified as waste
of man-made fibers (of nylon) under tariff item 5505.10.2000.
According to the Harmonized System Explanatory Notes (heading
5505), yarn wastes are "broken, knotted or tangled yarns
collected as waste during the spinning, doubling, reeling,
weaving, knitting, etc., operations." This yarn, although
apparently of inferior quality, does not fit this description and
is not classified as a waste product.
The applicable tariff provision for the yarn will be
5402.32.3000, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), which provides for textured yarn; of nylon or
other polyamides, measuring per single yarn more than 500
decitex; single yarn. The general rate of duty will be 9.8
percent ad valorem.
Assuming that the yarn is extruded and textured in Canada,
and that all subsequent processes occur in Canada, each of the
non-originating materials used to make the yarn has satisfied the
changes in tariff classification required under HTSUSA General
Note 12(t)/54. The yarn will be entitled to a 3 percent ad
valorem rate of duty under the NAFTA upon compliance with all
applicable laws, regulations, and agreements.
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 C.F.R. 181).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
This ruling letter is binding only as to the party to whom
it is issued and may be relied on only by that party.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport