Proposed Modification of Two Ruling Letters and Proposed Revocation of Treatment Relating to the Tariff Classification of Cotton Core-Spun Yarns

In Binding Ruling NY N304396, CBP classified cotton core-spun yarn in heading 5606, HTSUS, specifically in subheading 5606.00.00, HTSUS, which provides for "[g]imped 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.” CBP has reviewed NY N304396 and has determined the ruling letter to be in error. It is now CBP’s position that cotton core-spun yarn is properly classified in heading 5205, HTSUS, specifically in subheading 5205.12.10, HTSUS, which provides for "[c]otton yarn (other than sewing thread), containing 85 percent or more by weight of cotton, not put up for retail sale: Single yarn, of uncombed fibers: Exceeding 14 nm but not exceeding 43 nm: Unbleached, not mercerized."

In Binding Ruling In NY N304440, CBP classified cotton core-spun yarn in heading 5606, HTSUS, specifically in subheading 5606.00.00, HTSUS, which provides for "[g]imped 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 waleyarn." CBP has reviewed NY N304440 and has determined the ruling letter to be in error. It is now CBP's position that cotton core-spun yarn is properly classified in heading 5206, HTSUS, specifically in subheading 5206.32.00, HTSUS, which provides for "[c]otton yarn (other than sewing thread), containing less than 85 percent by weight of cotton, not put up for retail sale: Multiple (folded) or cabled yarn, of uncombed fibers: Exceeding 14 nm but not exceeding 43 nm per single yarn."

CBP is proposing to modify [beginning on page 39] NY N304396 and NY N304440 and to revoke or modify any other ruling not specifically identified to reflect the analysis contained in the proposed Headquarters Ruling Letter H311461. Additionally, CBP is proposing to revoke any treatment previously accorded by CBP to substantially identical transactions. Before taking this action, consideration will be given to any written comments timely received.

In proposing these revocations, CBP states:

"CBP has held that gimped yarns and core-spun yarns are different and should be classified in different headings. See NY 866313, dated August 28, 1991 (stating the core spun yarns are not considered to be gimped yarns). Pursuant to EN to 56.06, a gimped yarn consists of a yarn, around which is wrapped spirally another yarn or filament or strip. It is distinguished from a twisted yarn in that the core yarn does not twist with the yarn that is wrapped around it; the surrounding yarn could be unwrapped and the core yarn would remain intact.

"Core-spun yarns are often confused with gimped yarns. They differ in that they consist of a core (usually a monofilament or multifilament yarn), around which fibers (not yarns) are wrapped. A common example is a spandex filament core with a wrapping of cotton fibers. Since it is sometimes difficult for the unaided eye to distinguish fibers wrapped around a core from yarn wrapped around a core, it may be necessary to request laboratory analysis to identify such yarns. Core-spun yarns are not classified as gimped yarns but rather as basic yarns in the appropriate provisions in chapters 50–55 (depending on chief weight, generally). See CBP’s Informed Compliance Publication (“ICP”), What Every Member of the Trade Community Should Know About: Classification of Fibers and Yarns under the HTSUS, dated September 2011. The Dictionary of Fiber & Textile Technology also describes core-spun yarn as 'a yarn made by twisting fibers around a filament or a previously spun yarn, thus concealing the core.' See Dictionary of Fiber & Textile Technology, 44 (1999)."

Comments must be received on or before April 9, 2021.