The tariff classification of acrylic and chenille yarn kits from Spain and Italy

N192880 December 1, 2011 CLA-2-55:OT:RR:NC:N3:351 CATEGORY: Classification TARIFF NO.: 5511.10.0030, 5606.00.0090 Mr. Brian Kavanaugh Deringer Logistics Consulting Group 173 West Service Road Champlain, NY 12919 RE: The tariff classification of acrylic and chenille yarn kits from Spain and Italy Dear Mr. Kavanaugh: In your letter dated November 8, 2011, you requested a tariff classification ruling on behalf of your client, Caldwell Design of Toronto, Ontario, Canada. You submitted two yarn kits. Each contains a ball of yarn and a sheet of paper with printed instructions to create a scarf. One side of the sheet has the instructions and the reverse side of the sheet is printed with the yarn name and logo, the fiber content, and country of origin of the yarn. The printed sheet contains the www.blacksheepandewe.com website address on both sides of the paper. The printed instruction sheet measures approximately 5½ inches x 4¼ inches. The yarn and the printed instructions comprise a set for tariff purposes. The yarn imparts the essential character to each set. General Rule of Interpretation 3(b), Harmonized Tariff Schedule of the United States (HTSUS) noted. Style Ondas is 100% acrylic staple fiber yarn. It is a knit yarn in a 100-gram ball. The yarn meets the tariff definition of “put up for retail sale” found in Section XI, Note 4, HTSUS. It is marked “Made in Spain.” The applicable subheading for the yarn kit Style Ondas 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 staple fibers, containing 85 percent or more by weight of such fibers: acrylic.” The rate of duty will be 7.5% ad valorem. Style Panache is a 100% nylon knit yarn with short fibers extending out from the yarn half an inch, creating a chenille effect; the chenille effect runs two, three, four, or five inches along the yarn, and the inserts are three to seven inches apart. It is marked “Made in Italy.” The applicable subheading for the yarn kit Style Panache will be 5606.00.0090, HTSUS, which provides for chenille yarn. The rate of duty will be 8% ad valorem. You suggest that Panache is classifiable in subheading 5511.10, HTSUS, as Ondas is. However, as described above, Panache is a chenille yarn and chenille yarns are specifically provided for in heading 5606. Finally, you requested a ruling on country of origin marking.You state that the yarns are imported from Spain and Italy into Canada where they are repackaged into the kits. Each yarn kit is packaged with printed instructions and enough yarn to create specific items with the packaged yarn. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the origin marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. In this case, the ultimate purchaser of the yarn kits will be the consumer who purchases the kit at retail. Therefore if the yarn kits are marked with their country of origin, the packaging can be marked, “Made in Spain / Packaged in Canada” or “Made in Italy / Packaged in Canada.” 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 http://www.usitc.gov/tata/hts/. The samples will be returned. 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 Mitchel Bayer at (646) 733-3102. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division