CLA-2-52:RR:NC:TA:351 E86517
Mr. Eric Aronowitz
Marubeni America Corporation
450 Lexington Avenue
New York, NY 10017-3984
RE: The tariff classification of raw cotton and cotton waste from India
Dear Mr. Aronowitz:
In your letter dated August 19, 1999, you requested a tariff classification ruling.
You submitted three samples of raw cotton and cotton waste and requested classification rulings and quota information on each. The types were identified as Type QC, Type QC-A and Type C. You supplied information from your supplier concerning the composition of this cotton. This included laboratory analysis provided in India.
Type QC and QC-A are claimed to be comber waste combined with virgin cotton staple fiber. Laboratory analysis supplied by your shipper indicates that the staple length ranges from 20 to 22 mm for Type QC and 18 to 22 mm for Type QC-A. Type C is stated to be waste from 100 percent comber noil.
Values were given for the cotton as follows: Type QC: $2.95/kg; Type QC-A: $2.60/kg and Type C: $2.30/kg.
Sample QC and QC-A are considered to be commingled goods. They contain both comber waste and virgin cotton staple fiber; both of these items have separate classifications assigned to them. General Note 17 of the Harmonized Tariff Schedule of the United States (HTS) states:
“Commingling of Goods:
(a) Whenever goods subject to different fates of duty are so packed together or mingled that the quantity or value of each class of goods cannot be readily ascertained by customs officers (without physical segregation of the shipment or the contents of any entire package thereof), by one or more of the following means:
(i) sampling,
(ii) verification of packing lists or other documents filed at the time of entry, or
(iii) evidence showing performance of commercial settlement tests generally accepted in the trade and filed in such time and manner as may be prescribed by regulations of the Secretary of the Treasury,
the commingled goods shall be subject to the highest rate of duty applicable to any part thereof unless the consignee or his agent segregates the goods pursuant to subparagraph (b) thereof.”
For raw cotton, the highest possible rates of duty are applicable to cotton fiber and not comber waste. As the merchandise cannot readily be segregated, we will treat this cotton fiber of Types QC and QC-A as cotton fiber, not carded or combed, and not as comber waste.
In one of your faxes, you stated that the cotton is of the Gossypium hirsutum variety, but it was not clear whether you could obtain foreign government certification of that fact. Unless certification can be submitted that the cotton is of this variety, it would not be eligible for treatment under the Special Upland Weekly Cotton Quota. However, India is a member country of the World Trade Organization, and as such, is entitled to special quota treatment as provided for in U.S. note 5 to chapter 52.
You requested classification advice based upon various scenarios: (1) if the cotton were of the Gossypium hirsutum variety and the quotas were open, (2), if of that variety, but the quotas were closed and (3) if the cotton could not be certified to be of the Gossypium hirsutum variety. For purposes of clarity, we will first deal with the classification of types QC and QC-A, (staple cotton, not carded, not combed), through the various scenarios, and then with Type C (cotton waste).
Types QC and QC-A:
Provided that the cotton of Types QC and QC-A are of the variety Gossypium hirsutum and can be certified as such, the tariff classification would be 5201.00.1200, HTS, which provides for cotton not carded or combed, having a staple length under 28.575 mm, other, described in general note 15 of the tariff schedule and entered pursuant to its provisions. These provisions include the Special Agricultural quota limitations set out in subheading 9903, HTS. Dependent upon the time of purchase and shipment, and the quota availability, the merchandise would be entered under those respective subheadings.
If the merchandise cannot be entered under the provisions of general note 15, then Type QC, and QC-A will be subject to a quantitative restriction of 908,764 kilograms, as described in additional U.S. note 5 to chapter 52, HTS. If this quota is not filled, the applicable subheading for Types QC and QC-A will be 5201.00.1400, HTS, which provides for cotton, not carded or combed, having a staple length under 28.575 mm, described in additional U.S. note 5 to this chapter and entered pursuant to its provisions. The merchandise will be free of duty.
If, at the time of entry, the quota provided in additional U.S. note 5 to chapter 52 is filled, the applicable subheading for Types QC and QC-A will be 5201.00.1800, HTS, which provides for cotton, not carded or combed, other, other. The applicable rate of duty will be 32.3 cents per kilogram. Additionally, for Types QC and QC-A, an additional duty assessment will be made under the provisions of subheading 9904. These rates are dependent upon the value of the cotton per kilo.
Based upon the values supplied, the applicable subheading for Types QC and QC-A will be 9904.52.09, HTS, which provides for cotton, not carded or combed, the product of any country or area including the United States, having a staple length under 28.575 mm, provided for in subheading 5201.00.1800, if entered during the effective period of safeguards based upon quantity announced by the Secretary of Agriculture. The additional rate of duty will be 10.8 cents per kg.
Type C
The applicable subheading for Type C is 5202.99.5000, HTS, which provides for cotton waste, other, other, other. The applicable rate of duty will be Free. There are no special provisions in subheadings 9903 or 9904 for this type of cotton waste.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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 Camille Ferraro at 212-637-7086.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division