CLA-2-56:OT:RR:NC:N3:351
Ms. Roxann Harry-Potter
ALPI Customs Brokerage
70 East Sunrise Highway, Suite 607
Valley Stream, NY 11581
RE: The tariff classification of yarns from China
Dear Ms. Harry-Potter:
In your letter dated February 24, 2021, you requested a tariff classification ruling on behalf of your client, Orchard Yarn & Thread Co. dba Lion Brand Yarn. Samples were provided and sent for laboratory analysis. The samples will be retained for training purposes.
Article #538, Vel-Luxe Impressions, is a yarn composed of 100 percent polyester. The yarn is for retail sale and is intended for hand knitting.
According to U.S. Customs and Border Protection (“CBP”) laboratory analysis, the sample consists of two components: (1) a chenille yarn, comprising 94.2 percent by weight of the yarn, and (2) a multifilament yarn, comprising 5.8 percent by weight of the yarn. The multifilament yarn shapes the chenille yarn into loops. The sample, excluding packaging, weighs 103.5 grams.
Article #537, Vel-Luxe Jumbo, is a tubular knit chenille yarn composed of 100 percent polyester. The yarn is for retail sale and is intended for hand knitting.
According to the CBP laboratory analysis, the average width of the tubular knit, in its flattened state, is 13.0 millimeters. The tubular knit structure is composed of a single yarn. The yarn is composed of two strands of textile yarn twisted together and gripping short ends of textile yarn forming a chenille yarn. The entire ball of yarn (without the label), as received, weighs 198.7 grams.
Article #3011, Sesame Street Off the Hook Magic, is a yarn composed of 100 percent polyester. The yarn is presented in a skein, is for retail sale, and is intended for hand knitting.
According to the CBP laboratory analysis, the sample consists of two components. Yarn #1 is constructed of a chain-stitched multifilament yarn gripping short ends of fibers that stand perpendicularly creating a chenille effect. Yarn #2 is a multifilament yarn that is used to sew yarn #1 into loops. The sample is not of tubular knit, loop wale or circular knit construction, and its diameter is more than 2 millimeters wide when flattened. The skein weighs 102.9 grams.
Article #519, Off the Hook Glitz, is a yarn composed of 100 percent polyester. The yarn is presented in a skein and weighs 91 grams. The yarn is for retail sale and is intended for hand knitting.
According to the CBP laboratory analysis, the sample consists of two components. Yarn #1 is constructed of a chain-stitched multifilament yarn gripping short ends of the fibers and man-made strips that stand perpendiculary creating the chenille effect. Yarn #2 is a multifilament yarn that is used to sew yarn #1 into loops. The sample has the following overall composition by weight:
Polyester (staple) 87.3 percent
Polyester (strips) 6.7 percent
Polyester (filament) 6 percent
The length of the man-made (polyester) strips when unfolded is 22 millimeters. The sample is not of tubular knit, loop wale and/or circular construction, and its diameter is more than 2 millimeters when flattened.
You have suggested that Article #538, Vel-Luxe Impressions; Article #537, Vel-Luxe Jumbo; and Article #519, Off the Hook Glitz, should be classified under subheading 5606.00.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Gimped yarn, and strip and the like of heading 5404 or 5405, gimped (other than those of heading 5605 and gimped horsehair yarn); chenille yarn (including flock chenille yarn); loop wale-yarn: Other.” We agree. The duty rate will be 8 percent ad valorem.
You have also suggested that Article #3011, Sesame Street Off the Hook Magic, should be classified under subheading 5511.10.0060, 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 than 85 percent by weight of such fibers, Other.” We disagree. The yarn meets the definition of chenille yarn specifically provided for under heading 5606, HTSUS. Therefore, heading 5511 does not apply.
The applicable subheading for Article #538, Vel-Luxe Impressions, Article #537, Vel-Luxe Jumbo, Article #519, Off the Hook Glitz, and Article #3011, Sesame Street Off the Hook Magic, will be 5606.00.0090, HTSUS, which provides for “Gimped yarn, and strip and the like of heading 5404 or 5405, gimped (other than those of heading 5605 and gimped horsehair yarn); chenille yarn (including flock chenille yarn); loop wale-yarn: Other.” The rate of duty will be 8 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 5606.00.0090, 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 5606.00.0090, 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, including information on exclusions and their effective dates, 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