CLA-2-56:OT:RR:NC:N3:351
Miguel Aristizabal
Fabricato S. A.
Carrera 50 # 38-320
Bello
Colombia
RE: The tariff classification and status under the United States-Colombia Trade Promotion Agreement (CTPA) of a gimped yarn from Colombia
Dear Mr. Aristizabal:
In your original letter dated April 3, 2019 and your follow up letter, dated May 17, 2019, you requested a ruling on the classification of a gimped yarn under the CTPA.
You submitted detailed literature and a sample of a yarn put up on an industrial cone support. According to the terms of Note 4 to Section XI, Harmonized Tariff Schedule of the United States (HTSUS), the yarn does not meet the definition of “put up for retail sale.” You describe the yarn as a blend of polybutylene terephalate (PBT) and polyurethane elastomeric filament yarn core covered with either natural, synthetic or artificial fibers or their blends. The yarn is composed of 4 percent of polyurethane elastomeric (spandex) fibers combined with 16 percent PBT fibers, and 80 percent of natural, synthetic or artificial fibers. The gimped yarn is used in the production of fabrics for jeans, sports and outdoor apparel.
The Explanatory Note (EN) to 56.06 states the following, in relevant part: (A) GIMPED YARN, AND STRIP AND THE LIKE OF HEADING 54.04 OR 54.05, GIMPED (OTHER THAN THOSE OF HEADING 56.05 AND GIMPED HORSEHAIR YARN): Products composed of a core, usually one or more textile yarns, around which other yarn or yarns are wound spirally. Based on the submitted schematic drawing and physical sample, the yarn meets the definition of gimped yarn found in the EN to heading 56.06, HTSUS.
The applicable subheading for the gimped yarn will be 5606.00.0010, of HTSUS, which provides for gimped yarn, containing elastomeric filaments. The rate of duty will be 8 percent ad valorem.
You have described the manufacturing and assembly of the gimped yarn as follows:
The core yarn, PBT and polyurethane elastomeric (spandex) filaments, are spun in the United States.
The fibers for the yarn that covers the core yarn (cotton, synthetic and/or artificial) are obtained either in Colombia or the United States
The covering (dual core spinning) of the PBT and spandex filament yarn takes place in Colombia.
The gimped yarn is exported to the US directly from Colombia.
The finished yarn is wound on industrial cones of a pre-determined weight to be used in the production of woven and knit fabrics.
General Note 34, HTSUS, sets forth the criteria for determining whether a good is originating under the CTPA. General Note 34(b), HTSUS, (19 U.S.C. §1202) states, in pertinent part, that For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of Colombia or of the United States under the terms of this note if– (i) the good is wholly obtained or produced entirely in the territory of Colombia or of the United States, or both; (ii) the good is produced entirely in the territory of Colombia or of the United States, or both, and-- (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or (B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and satisfies all other applicable requirements of this note and of applicable regulations; or (iii) the good is produced entirely in the territory of Colombia or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above. Based on the facts provided, gimped yarns qualifies for CTPA preferential treatment, because it meets the requirements of HTSUS General Note 34(b)(iii). The gimped yarns were produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials. The merchandise will therefore be entitled to a free rate of duty under the CTPA upon compliance with all applicable laws, regulations, and agreements
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 https://hts.usitc.gov/current.
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, please contact National Import Specialist Adleasia Lonesome via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division