The tariff classification of a knit yarn

HQ H308262 September 8, 2020 OT:RR:CTF:FTM H308262 TSM CATEGORY: Classification TARIFF NO.: 5606.00.00 Ms. Roxann Harry-Potter ALPI USA Inc. 70 East Sunrise Highway, Suite 607 Valley Stream, NY 11581 RE: The tariff classification of a knit yarn Dear Ms. Harry-Potter, This is in response to your request, on behalf of Orchard Yarn, for a ruling regarding the tariff classification of a certain knit yarn under the Harmonized Tariff Schedule of the United States (“HTSUS”). FACTS: The merchandise at issue is a knit yarn, identified as Article # 509 – Boogie Night, composed of 80% polyester yarn and 20% metallic fibers. It is of a tubular knit configuration and is made of two components: (1) a spun polyester single yarn; and (2) a multifilament yarn twisted with a metallic monofilament. When flattened, the subject yarn is approximately 4 mm wide. The yarn is intended for hand knitting and is presented for sale in a skein weighing 85 grams. Commercially, it is referred to as a “yarn.” ISSUE: What is the tariff classification of the knit yarn under consideration? LAW AND ANALYSIS: Classification decisions under the HTSUS are made in accordance with the General Rules of Interpretation (“GRIs”).  GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes.  In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.  In addition, in interpreting the HTSUS, the Explanatory Notes (“ENs”) of the Harmonized Commodity Description and Coding System may be utilized. The ENs to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). General EN to Section XI provides in relevant part as follows: CHAPTERS 50 TO 55   Chapters 50 to 55 each deal with one or more textile materials, alone or mixed, at their various stages of manufacture, up to and including their conversion into woven fabrics as described in Part (I)(C) below. They cover, in most cases, the raw material, recovered waste (including garnetted stock but not unpulled rags), carded or combed fibres in the form of slivers, rovings, etc., yarns and woven fabrics.   * * * (B) Yarns   (1)   General.   Textile yarns may be single, multiple (folded) or cabled. For the purposes of the Nomenclature:          (i) Single yarns means yarns composed either of:         (a)    Staple fibres, usually held together by twist (spun yarns); or of         (b)   One filament (monofilament) of headings 54.02 to 54.05, or two or more filaments (multifilament) of heading 54.02 or 54.03, held together, with or without twist (continuous yarns).          (ii) Multiple (folded) yarns means yarns formed from two or more single yarns, including those obtained from monofilaments of heading 54.04 or 54.05 (twofold, threefold, fourfold, etc. yarns) twisted together in one folding operation. However, yarns composed solely of monofilaments of heading 54.02 or 54.03, held together by twist, are not to be regarded as multiple (folded) yarns.                The ply (“fold”) of a multiple (folded) yarn means each of the single yarns with which it is formed.          (iii) Cabled yarns means yarns formed from two or more yarns, at least one of which is multiple (folded), twisted together in one or more folding operations.                The ply (“fold”) of a cabled yarn means each of the single or multiple (folded) yarns with which it is formed. * * * However, Chapters 50 to 55 do not include:   Rubber thread, textile covered, and textile yarns impregnated (including dipped), coated, covered or sheathed with rubber or plastics, of heading 56.04. Metallised yarn (heading 56.05). Gimped yarn, chenille yarn and loop waleyarn (heading 56.06). Braided textile yarns (heading 56.07 or 58.08, as the case may be). Textile yarns reinforced with metal thread (heading 56.07). Yarns, monofilaments or textile fibres laid parallel and bonded with an adhesive (bolduc) (heading 58.06). Textile yarns laid parallel and agglomerated with rubber of heading 59.06. * * * TABLE I   Classification of yarns, twine, cordage, rope and cables of textile material. Type (*) Characteristics determining classification Classification  Of metallised yarn In all cases   Heading 56.05  Gimped yarn, other than those of headings 51.10 and 56.05, chenille yarn and loop wale yarn In all cases   Heading 56.06   * * * EN to heading 5605 provides in relevant part as follows: This heading covers:   Yarn consisting of any textile material (including monofilament, strip and the like and paper yarn) combined with metal thread or strip, whether obtained by a process of twisting, cabling or by gimping, whatever the proportion of the metal present. The gimped yarns are obtained by wrapping metal thread or strip spirally round the textile core which does not twist with the metal. Precious metals or plated metals are frequently used.   Yarn of any textile material (including monofilament, strip and the like, and paper yarn) covered with metal by any other process. This category includes yarn covered with metal by electrodeposition, or by giving it a coating of adhesive (e.g., gelatin) and then sprinkling it with metal powder (e.g., aluminium or bronze). * * * EN to heading 5606 provides in relevant part as follows: The heading excludes:   Gimped horsehair yarn (heading 51.10). Rubber thread gimped with textiles (heading 56.04). Gimped metallised yarn (heading 56.05). Milanaise and similar cords and other gimped textile products of heading 58.08. Gimped metal wire, e.g.: Iron or steel wire for the manufacture of hat frames (milliners’ wire) and stems of iron or steel wire for artificial flowers or hair curlers (heading 72.17).         (ii) Insulated electric wire (heading 85.44). * * * (C) LOOP WALEYARN   Loop waleyarn is a tubular yarn made on a circular knitting machine and is 1.5 to 2 mm wide when pressed flat. This yarn is used for making fringes and other textile accessories and for making woven fabrics on conventional warp and weft looms. * * * The 2020 HTSUS provisions under consideration are as follows: 5605 Metalized yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal * * * 5606 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 * * * Consistent with General EN 1 to Section XI, textile yarns of chapters 50 to 55 may be single, multiple (folded), or cabled. The yarn at issue, however, is knit from a single yarn and a multifilament yarn – a construction that does not describe the yarns of chapters 50 to 55. Upon review, we find that the yarn under consideration is classified under Chapter 56, HTSUS. Specifically, at issue is whether it is classified under heading 5605, HTSUS, as a “metalized yarn,” or under heading 5606, HTSUS, as a “loop wale-yarn.” With regard to heading 5605, HTSUS, we note that the EN to this heading provides in relevant part that this heading covers “[y]arn consisting of any textile material … combined with metal thread or strip, whether obtained by a process of twisting, cabling or by gimping…” Upon review of the yarn at issue, we find that it is not formed by any of the referenced methods, but is formed by knitting. Accordingly, we find that this yarn is not a metalized yarn of heading 5605, HTSUS, and is not classified under this heading. Turning to heading 5606, HTSUS, we note that the EN to this heading provides in relevant part that “gimped metallised yarn” is excluded from the heading. Consistent with the discussion above, we note that although the yarn at issue contains 20% metallic fibers, it is knitted rather than gimped. Accordingly, the referenced exclusion does not apply in this case. EN to heading 5606 further provides, in relevant part, that “[l]oop wale-yarn is a tubular yarn made on a circular knitting machine and is 1.5 to 2 mm wide when pressed flat.” Similarly, in a September 2011 Informed Compliance Publication (“ICP”) on Classification of Fibers and Yarns under the HTSUS, CBP defined “loop wale-yarn” as follows: Loop wale-yarn, sometimes known as “chainette” or “loop and wale” yarn, is created by knitting a fabric that is narrow enough to have the appearance of a yarn. Close examination reveals the successive interlocking loops typical of knit construction. It is covered by HTS 5606. The Explanatory Note to 5606 refers to it as loop wale-yarn and describes it as “a tubular yarn made on a circular knitting machine [that] is 1.5 to 2 mm wide when pressed flat.” Upon review, we find that the yarn at issue is a tubular knit yarn with successive interlocking loops and therefore meets the above definitions of loop wale-yarn. According to the ICP and the cited ENs, the loop wale-yarn is to be classified in heading 5606, HTSUS, in all cases. Furthermore, although the yarn at issue is approximately 4 mm wide when pressed flat, we note that in several prior rulings CBP determined that loop wale-yarns wider than 2 mm in the flattened state are classified under heading 5606, HTSUS. See New York Ruling Letter (“NY”) J80810, dated March 6, 2003 (classifying tubular knit construction yarns approximately 3-4 mm in width under subheading 5606.00.00, HTSUS); NY N287262, dated July 11, 2017 (classifying a tubular knit yarn measuring approximately 23 mm in width, when pressed flat, under subheading 5606.00.00, HTSUS); and Headquarters Ruling Letter (“HQ”) H249752, dated August 24, 2016 (classifying a tubular cotton knit yarn measuring approximately 30 mm wide, when pressed flat, under subheading 5606.00.00, HTSUS). Based on the foregoing, we conclude that the yarn at issue is classified under heading 5606, HTSUS, and specifically under subheading 5606.00.00, 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.” HOLDING: By application of GRI 1 and 6, the knit yarn at issue is classified under heading 5606, HTSUS, and specifically under subheading 5606.00.00, 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.” The 2020 general, column one rate of duty is 8 percent ad valorem. 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 internet at www.usitc.gov/tata/hts/. A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction. Sincerely, Yuliya A. Gulis, Chief Food, Textiles and Marking Branch