Wednesday, March 12, 2014

Tariff Classifications of Several Hand Knitting Yarns. Alpaca from Peru. Acrylic from Italy or Turkey.

With the increased interest in hand knitting in the U.S. more yarn, and more kinds of yarns, are being imported "put up for retail." Last month U.S. Customs and Border Protection issued Binding Ruling Letters relating to eleven such yarns.

Ruling #N250032 related to the tariff classification of four knitting yarns and a chenille yarn, from Italy or Turkey

1. Heartland Thick & Quick, is stated to be 100% acrylic. It is a three-ply twisted staple-fiber bulky yarn. The label states that the hank weighs five ounces.

2. Country 254 Quarry, is also said to be 100% acrylic. It is a two-ply twisted bulky staple-fiber yarn. The sample hank weighs 139 grams. A simple desk test reveals the decitex to be approximately 10,000.

3. Landscapes, is a 100% acrylic twisted yarn. The hank weighs 100 grams.

4. Gold Leaf, is a two-ply twisted yarn of 90% acrylic and 10% wool. The yarn is decorated with gold-colored foil, with a 3/4-inch piece every two inches or so. All of the above yarns meet the tariff definition of “put up for retail sale” found in Section XI, Note 4, Harmonized Tariff Schedule of the United States (HTSUS). The applicable subheading for the above yarns will be 5511.10.0030, HTSUS, which provides for yarn (other than sewing thread) of man-made staple fibers, put up for retail sale, of synthetic staples fibers, containing 85 percent or more by weight of such fibers, acrylic. The duty rate will be 7.5% ad valorem.

5. Style Pelt is a yarn of knit construction with loose fibers caught in the knitted loops and extending out approximately 3/4 of an inch, creating a chenille effect. The applicable subheading for the yarn, style Pelt, will be 5606.00.0090, HTSUS, which provides for chenille yarn. The rate of duty will be 8% ad valorem.

Ruling #N250281 related to five styles of knitting yarns from Italy or Turkey.

1. Vanna’s Tapestry, is 100% acrylic. It is a four-ply twisted staple-fiber yarn. The label states that the hank is 136 meters and weighs 85 grams.

2. Vanna’s Palette, is eight small hanks, each 16 meters and 10 grams, 100% acrylic, twisted yarn packaged together in a plastic bag; each yarn is a different color.

3. Zanzibar, style 826, is a 53% wool and 47% acrylic twisted yarn. The hank weighs approximately 50 grams.

All of the above yarns meet the tariff definition of “put up for retail sale” found in Section XI, Note 4, Harmonized Tariff Schedule of the United States (HTSUS). The applicable subheading for Vanna’s Tapestry and Vanna’s Palette will be 5511.10.0030, HTSUS, which provides for yarn (other than sewing thread) of man-made staple fibers, put up for retail sale, of synthetic staples fibers, containing 85 percent or more by weight of such fibers, acrylic. The duty rate will be 7.5% ad valorem. The applicable subheading for style 826, Zanzibar, will be 5109.90.9000, HTSUS, which provides for yarn of wool, put up for retail sale:… Other: Other: Other. The rate of duty will be 6% ad valorem.

4. Style Modern Baby is a 50% acrylic/50% nylon knit yarn, 158 meters, 75 grams. It, too, meets the tariff definition of “put up for retail sale” found in Section XI, Note 4. The applicable subheading for Modern Baby will be 5511.10.0060, HTSUS, which provides for yarn (other than sewing thread) of man-made staple fibers, put up for retail sale, of synthetic staples fibers, containing 85 percent or more by weight of such fibers, other. The duty rate will be 7.5% ad valorem. Note 2(A) to Section XI, HTSUS, noted.

5. Style Keppi is an acrylic yarn intermittently combined with (either twisted with or gimped by) a chenille yarn that includes polyester textile strips that add to the chenille effect; 10 feet of the chenille yarn alternate with twenty or more feet of the twisted yarn. This yarn is considered a chenille yarn for tariff classification purposes. Keppi comes packaged with a pompom that is made of a knit pile fabric formed into a 2-3”- diameter ball filled with textile staple fibers. The yarn and pompom are retail-packaged with a crochet hook and instructions for a hat with a pompom. The yarn, pompom, and hook imported as a retail whole are considered a set for tariff classification purposes under the terms of General Rule of Interpretation (GRI) 3. According to the terms of GRI 3(b), the essential character of the set is imparted by the yarn and the set will be so classified. The applicable subheading for the yarn set Keppi will be 5606.00.0090, HTSUS, which provides for chenille yarn. The rate of duty will be 8% ad valorem.

Ruling #N249380 related to a alpaca/silk yarn from Peru, described as follows: 74% Suri Alpaca and 26% silk, called Andean Mist. (Suri Alpaca is a breed of the animal with longer hair, among other characteristics making it’s hair and the yarn made from it softer and finer, and thus more desirable and expensive.) Alpaca is considered fine animal hair for tariff classification purposes. Legal Note 1(b) to Chapter 51, Harmonized Tariff Schedule of the United States (HTSUS), noted. The yarn will be sold in 25-gram skeins. The yarn as imported meets the tariff definition of “put up for retail sale” found in Section XI, Note 4(b), HTSUS.

The applicable subheading for the alpaca /silk yarn as described above will be 5109.90.9000, HTSUS, which provides for yarn of wool or fine animal hair, put up for retail sale:…Other:…Other:…Other. The general rate of duty will be 6% ad valorem.

The yarn is manufactured in Peru. The alpaca is of Peru origin and silk fibers that are imported into Peru from China. The rule of origin in the U.S.-Peru Free Trade Promotion Agreement for goods classified in heading 5109 requires: "A change to heading 5106 through 5110 from any heading outside that group." The non-originating silk fibers are classified in Chapter 50, HTSUS and meet the terms of the tariff shift rule. Based on the facts provided, the yarn qualifies for Peru TPAIA preferential treatment because it meets the requirements of HTSUS General Note 32(b)(ii)(A). The merchandise will therefore be entitled to a Free rate of duty under the Peru TPAIA upon compliance with all applicable laws, regulations, and agreements.

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