CLA-2-55:S:N:N6:351 895614
Mr. David C. Williams
Ms. Margaret R. Polito
Neville, Peterson & Williams
39 Broadway
New York, NY 10006
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of polyester spun yarn and sewing thread from Mexico
Dear Mr. Williams and Ms. Polito:
In your letter dated March 11, 1994 you requested a ruling on the status of certain yarns from Mexico under the NAFTA, on behalf of Coats & Clark Inc.
You have submitted samples of two yarns, identified as styles 6110 and B885. Both are two-ply spun polyester staple fiber yarns with a final twist in the "Z" direction. Style 6110 is dyed, and is packaged on a plastic spindle; the total weight of the package is approximately 96 grams. You state that style 6110 is dressed. Style B885 is not dressed and not dyed. It is imported on dye tubes, and the total weight of the package is approximately 782 grams.
Because it is multiple (folded) yarn put up on supports of a weight not exceeding 1,000 grams, is dressed and has a final "Z" twist, style 6110 meets the definition of sewing thread found in Note 5 of section XI of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Style B885 does not meet this definition because it is not dressed.
You state in your letter that both yarns are made in Mexico from polyester staple fiber which is "manufactured in Mexico." We will assume that by "manufactured in Mexico," you mean that the fiber is extruded and cut to staple fiber length in Mexico. The remaining production steps - spinning, twisting, plying and packaging in the case of style B885, and spinning, twisting, plying, dyeing, dressing and packaging in the case of style 6110 - occur in Mexico.
The applicable tariff provision for style 6110 will be 5508.10.0000 HTSUSA, which provides for sewing thread of man-made staple fibers, whether or not put up for retail sale; of synthetic staple fibers. The general rate of duty will be 13 percent ad valorem.
The applicable tariff provision for style B885 will be 5509.22.0010 HTSUSA, which provides for yarn (other than sewing thread) of synthetic staple fibers, not put up for retail sale: containing 85 percent or more by weight of polyester staple fibers; multiple (folded) or cabled yarn; multiple (folded), with a final "Z" twist. The general rate of duty will be 12 percent ad valorem.
Styles 6110 and B885, being made entirely in the territory of Mexico using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b)(iii). Therefore, style 6110 will be entitled to a free rate of duty and style B885 will be entitled to a 10.5 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