CLA-2-54:RR:NC:N3:351
Thomas G. Travis
Sandler, Travis & Rosenberg, P.A.
The Waterford
5200 Blue Lagoon Drive
Miami, FL 33126-2022
RE: The tariff classification of polyester yarn from various countries; use in garments imported under the United States/Dominican Republic – Central American Free Trade Agreement
Dear Mr. Travis:
In your letter dated Oct. 30, 2006, you requested a tariff classification ruling on behalf of your client, Hanesbrands, Inc.
FACTS:
You submitted samples of the polyester yarn and described them as textured filament multifilament singles yarns, dyed, finished with a sewing lubricant, and put up on cones weighing less than 1000 grams. You state that the yarn may be imported into the United States or one or more countries that are party to the United States/Dominican Republic – Central American Free Trade Agreement (DR-CAFTA, or “the Agreement”) from various countries including Hong Kong, China, and India. The yarns may also be manufactured in the U.S.
ISSUES:
What is the classification of the yarns? Will use of the yarns affect the eligibility of wearing apparel under the DR-CAFTA?
CLASSIFICATION:
Based on your description and our desk examination, the yarns are indeed multifilament singles yarns. You do not state by what process the yarns have been texturized, but under magnification there is reduced parallel orientation of the filaments, one characteristic of texturized yarns specifically mentioned in the Explanatory Note to subheadings 5402.31-5402.39, Harmonized Tariff Schedule of the United States (HTSUS).
Note 5 to Section XI, HTSUS, defines sewing thread, in pertinent part, as follows:
For the purposes of headings 5204, 5401 and 5508, the expression "sewing thread" means multiple (folded) or cabled yarn. . . [emphasis added].
Because these are singles yarns, they do not meet the tariff definition of sewing thread.
The applicable subheading for the textured filament multifilament singles yarns will be 5402.33.3000, HTSUS, which provides for synthetic filament yarn (other than sewing thread), not put up for retail sale, . . . textured yarn, of polyesters, single yarn. The rate of duty will be 8.8% ad valorem.
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/.
Subheading 5402.33.3000, HTSUS, falls within textile category 600. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise that is the product of World Trade Organization (WTO) member countries. The textile category number above applies to merchandise produced in non-WTO member-countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce at www.otexa.ita.doc.gov.
CAFTA:
In your letter, you ask whether use of the yarns will affect the eligibility of wearing apparel that would otherwise qualify under the DR-CAFTA. You state that the yarns are produced in countries not party to DR-CAFTA, or that they may be produced in the U.S. However, you have not given us enough information on the U.S. production to determine whether or not those yarns are originating for purposes of DR-CAFTA. Hence we are unable to issue a ruling on whether apparel made with such yarns would be originating for purposes of DR-CAFTA.
In your letter, you ask a question in regard to General Note 29, HTSUS, 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, the yarns are not subject to the restrictions of the note.
HOLDING:
The textured polyester filament multifilament singles yarns are not sewing thread for tariff purposes and are classified in subheading 5402.33.3000, HTSUS. Use of the yarns would not affect the DR-CAFTA eligibility of wearing apparel.
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