CLA-2-54:RR:NC:N3:351 M85520
BJ Shannon
Alston & Bird, LLP
The Atlantic Building
950 F St., N.W.
Washington, D.C. 20004
RE: The tariff classification of polyester embroidery thread and rayon embroidery thread from Thailand, Germany, or China; use in garments imported under the Central American Free Trade Agreement
Dear Ms. Shannon:
In your letter dated July 27, 2006, you requested a tariff classification ruling on behalf of your client, American & Efird, Inc.
You submitted samples of the polyester yarn in the undyed state, in the dyed state, and in the finished state, dressed for use as embroidery thread. You also submitted a spool of the rayon thread in the dyed state, and another spool in the finished state, dressed for use as embroidery thread. In addition, you submitted an example of embroidered fabric and one of unembroidered, sewn fabric, apparently to demonstrate the difference between embroidery thread and sewing thread.
FACTS:
You describe the polyester yarn as a plied filament yarn of 223.69 denier (approximately 200 decitex) with a final “Z” twist, not textured, with a finish that prepares it for use as embroidery thread. The rayon yarn is described as a plied filament yarn of 250.91 denier (approximately 225 decitex) with only a “Z” twist, not textured, with a finish that prepares it for use as embroidery thread. Our examination reveals that they are both multiple multifilament yarns, put up on supports (spools) that weigh less than 1,000 grams.
ISSUES:
What are the classifications of the embroidery threads? Will use of the threads affect the eligibility of wearing apparel under the Central American Free Trade Agreement (CAFTA)?
CLASSIFICATION:
Note 5 to Section XI, Harmonized Tariff Schedule of the United States (HTSUS), defines sewing thread as follows:
For the purposes of headings 5204, 5401 and 5508, the expression "sewing thread" means multiple (folded) or cabled yarn:
(a) Put up on supports (for example, reels, tubes) of a weight (including support) not exceeding 1, 000 g:
(b) Dressed for use as sewing thread; and
(c) With a final "Z" twist.
The submitted threads are put on supports weighing less than 1,000g and feature a final "Z" twist. You state that the thread does not have sufficient tensile strength for sewing, that is, for assembling garment parts and for basic repairing and mending; you claim that the stitches would break too easily. Its use will most probably serve for embroidery purposes, that is, embellishment, as per the sample of embroidered fabric you submitted.
You also state that the threads are not dressed for use as sewing thread, although they are dressed. You state that the polyester thread is finished in an emulsion and the rayon with a lubricant, but that neither is acceptable for sewing thread. The finishes are considerably less than 4.5% of the weight of the thread, whereas you state that for sewing threads it would be considerably more than 4.5%. In addition, the finishes are intended to enhance the luster of the embroidery, whereas dressing for sewing thread would normally dull the finish. You have submitted a letter from the manufacturer of the threads that essentially attests to the above.
Accordingly, based on our examination and the above information, the subject merchandise is not classified as sewing thread.
The applicable subheading for the polyester embroidery thread will be 5402.62.0000, HTSUS, which provides for synthetic filament yarn (other than sewing thread), not put up for retail sale …: other yarn, multiple (folded) or cabled, of polyesters. The rate of duty will be 7.5% ad valorem.
The applicable subheading for the rayon embroidery thread will be 5403.49.0000, HTSUS, which provides for artificial filament yarn (other than sewing thread), not put up for retail sale, . . .; other yarn, multiple (folded) or cabled; other. The rate of duty will be 7.5% ad valorem.
In your letter, you suggest that the rayon thread is classifiable in subheading 5402.69.0000, HTSUS, which provides for synthetic filament yarn...; other yarn, multiple (folded) or cabled; other. However, according to Note 1(b) to Chapter 54, HTSUS:
Throughout the tariff schedule, the term “man-made fibers” means staple fibers and filaments or organic polymers produced by manufacturing processes, either:
* * * (b) By chemical transformation of natural organic polymers (for example, cellulose, casein, proteins or algae), such as viscose rayon, cellulose acetate, cupro or alginates.
* * * artificial: fibers as defined at (b).
Thus, the rayon yarn is of artificial fibers, not synthetic.
Both subheadings 5402.62.0000 and 5403.49.0000, HTSUS, fall within textile category designation 606. Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cbp.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel, at www.otexa.ita.doc.gov.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
CAFTA:
You have stated the following regarding the origins of the embroidery threads:
The polyester yarn will be extruded in Thailand, twisted in China, and dyed and finished in the United States for use as embroidery thread.
The rayon yarn may be extruded in Germany or China, after which it will be twisted in China and dyed and finished either in China or in the United States for use as embroidery thread.
Thus, neither would be considered originating under CAFTA as defined in General Note (GN) 29, HTSUS. However, we refer to GN 29, Chapter 62 rule 4, which states:
Notwithstanding chapter rule 2 of this chapter, a good of this chapter, other than a good of headings 6207 through 6208 (for boxers, pajamas, and nightwear only), brassieres of subheading 6212.10 or girls’ dresses of tariff items 6204.42.30 (other than corduroy), 6204.43.40 or 6204.44.40, containing sewing thread of headings 5204, 5401, or 5508, shall be considered originating only if such sewing thread is both formed and finished in the territory of one or more of the parties to the Agreement.
Since the note speaks only of sewing thread, and the subject yarns are not classified as sewing thread, they are not subject to the restrictions of the note.
HOLDING:
The polyester embroidery thread will be classified in subheading 5402.62.0000, HTSUS. The rayon embroidery thread will be classified in subheading 5403.49.0000, HTSUS.
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 Mitchel Bayer at 646-733-3102.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division