CLA-2-51:S:N:N3H:351 873074
Ms. Darlene DiBernardo
F.W. Myers and Co., Inc.
P.O. Box 188
Champlain, N.Y. 12919
RE: The tariff classification of wool and polyester yarns spun in
Canada from foreign and domestic fibers (tops)
Dear Ms. DiBernardo:
In your letter dated March 25, 1992, you requested a tariff
classification ruling on behalf of your client, Cleyn and Tinker
(1989) Inc.
You submitted samples of two different yarns on cones, each
weighing approximately 11 ounces. Each is a two-ply staple fiber
yarn with a final S-twist. You have also submitted a photograph of
one of these yarns put up on a beam, and four photographs of the
yarns put up on beams with harness frames, reeds and heddles, ready
for attachment to a weaving machine.
In your letter, you indicate that one of the yarns is 100%
wool, and that it is spun in Canada from wool tops purchased
"offshore," which we assume means that it is from a country other
than Canada or the United States. The other yarn is 55% polyes-
ter/45% wool; it is spun in Canada from the same "offshore" wool
tops noted above, and from polyester tops from "domestic sources"
(which we assume means they are of Canadian origin). In both
cases, the following steps take place in Canada: (1) wool or
polyester tops are dyed prior to spinning, (2) they are subject to
a drawing operation to align (comb) the fibers, (3) they are spun
into a singles yarn and (4) they are finally twisted into two-ply
yarns.
The yarns are either imported into the United States on the
cones described above, or unwound from such cones onto a "warp"
beam. The beams of yarn are either imported in that condition into
the United States, or fitted with harness frames, reeds and heddles
and then imported. The beams, harness frames, reeds and heddles
are returned to Canada after use, and repeatedly re-used for
subsequent shipments.
The applicable subheading for the 100% wool yarns, whether
imported on cones, on beams or on beams fitted with harness frames,
reeds and heddles, will be 5107.10.0000, Harmonized Tariff Schedule
of the United States (HTS), which provides for yarn of combed wool,
not put up for retail sale; containing 85 percent or more by weight
of wool. The duty rate will be 9% ad valorem.
The applicable subheading for the 55% polyester/45% wool
yarns, whether imported on cones, on beams or on beams fitted with
harness frames, reeds and heddles, will be 5509.52.0000, HTS, which
provides for yarn (other than sewing thread) of synthetic staple
fibers, not put up for retail sale; other yarn, of polyester staple
fibers; mixed mainly or solely with wool or fine animal hair. The
duty rate will be 15% ad valorem.
Goods classifiable under subheading 5107.10.0000, HTS, which
have originated in the territory of Canada, will be entitled to a
5.4% ad valorem rate of duty under the United States-Canada Free
Trade Agreement (FTA) upon compliance with all applicable regula-
tions. Based on the facts you have presented, the 100% wool yarn
may qualify for this reduced rate under HTS General Note
3(c)(vii)(R)(11)(cc).
Goods classifiable under subheading 5509.52.0000, HTS, which
have originated in the territory of Canada, will be entitled to a
9% ad valorem rate of duty under the FTA upon compliance with all
applicable regulations. Based on the facts you have presented, the
55% polyester/45% wool yarn may qualify for this reduced rate under
HTS General Note 3(c)(vii)(R)(11)(hh).
Cones, beams and other packaging imported with yarns are
normally treated as part of packing and classified with the yarns.
However, you have asked whether the beams, harness frames, reeds
and heddles would be eligible for status as articles of interna-
tional traffic under the meaning of Section 10.41 of the Customs
Regulations. On that particular issue, we recommend that you write
directly to the Office of Regulations and Rulings, Attention:
Carrier Rulings Branch, U.S. Customs Service, 1301 Constitution
Ave. N.W., Washington D.C. 20229. Include a copy of this ruling
letter with your request.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
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.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport