CLA-2-55:OT:RR:NC:N3:351
31 Woodcrest Street Valley Stream, NY 11581 RE: The tariff classification of a tencel and hemp yarn from China Dear Ms. Harry-Potter: In your letter dated August 7, 2020, you requested a tariff classification ruling on behalf of your client, Orchard Yarn. Samples of the tencel and hemp yarns were provided and sent for laboratory analysis. The samples will be retained for reference purposes.
Article# 838, Nuboo, is a yarn stated to be composed of 100 percent tencel. The yarn is presented in a skein and weighs 85 grams. The yarn is for retail sale and is intended for hand knitting.
Article# 839, Hemptation, is a yarn stated to be composed of 100 percent hemp. The yarn is presented in a skein and weighs 100 grams. The yarn is for retail sale and is intended for hand knitting.
According to the U.S. Customs and Border Protection (“CBP”) laboratory analysis, Article# 838, Nuboo, is constructed of ten 2-ply staple yarns that are twisted together. It is wholly composed of rayon fibers and it is not a chenille yarn. The CBP laboratory also determined that Article# 839, Hemptation, is a 12-ply twisted yarn, composed wholly of hemp fibers.
The label on Article# 838, Nuboo, shows a proposed classification of the tencel yarn under subheading 5511.10.00, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Yarn (other than sewing thread) of man-made staple fibers, put up for retail sale; of synthetic staple fibers, containing more than 85 percent by weight of such fibers.” We disagree. Article #838, Nuboo, contains rayon fibers which is considered an artificial fiber. The applicable subheading for Article #838, Nuboo, will be 5511.30.0000, HTSUS, which provides for “Yarn (other than sewing thread) of man-made staple fibers, put up for retail sale: Of artificial staple fibers.” The rate of duty will be 7.5 percent ad valorem.
The applicable subheading for Article# 839, Hemptation, will be 5308.20.0000, HTSUS, which provides for “Yarn of other vegetable textile fibers; paper yarn: True hemp yarn.” The rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 5511.30.0000 and 5308.20.0000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 5511.30.0000 and 5308.20.0000, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 the 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, contact National Import Specialist Kristine Dodge at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division