Important Note about Nylon Filament and US Free Trade Agreements

Some of the U.S. textile trade free trade agreements ("FTAs") and preference programs contain a special rule for nylon filament yarn (other than elastomeric yarn) that is classifiable under at 5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00 of the Harmonized Tariff Schedule of the U.S. and formed in Canada, Israel, or Mexico.

The effect of this provision is that all the nylon filament yarns (other than elastomeric yarn) that textile manufacturers are likely to use are covered by this exemption from the general yarn forward requirements and, so, may be sourced from Canada, Mexico, or Israel.

Not all FTAs have the nylon exemption, so be sure to consult the regulations to understand when, and how, it applies. Subscribers to Agathon Associates' Trade Advisor service may view a detailed analysis of the nylon filament yarn exemption (including the citations from the United State Code and Harmonized Tariff Schedule) at http://agathonassociates.com/textile-pri/topics/nylon-exemption.htm