H311461

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H311461 April 19, 2021 OT:RR:CTF:FTM H311461 MJD CATEGORY: Classification CLASSIFICATION: 5205.12.10; 5206.32.00 Mr. Miguel Aristizabal Fabricato S. A. Carrera 50 # 38-320 Bello Colombia RE: Modification of NY N304396 and NY N304440; tariff classification of yarn Dear Mr. Aristizabal, This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered New York Ruling Letter (“NY”) N304396, issued to you on June 12, 2019, and NY N304440, issued to you on June 17, 2019, regarding the tariff classification of certain yarn from Colombia. In these rulings, CBP determined the yarns were gimped yarns, classified in subheading 5606.00.0010, Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”), 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: Containing elastomeric filaments.” CBP also found that the yarn in NY N304396 and NY N304440, qualified for preferential tariff treatment under the United States-Colombia Trade Promotion Agreement (“CTPA”). We have reviewed NY N304396 and NY N304440, and determined that it contains an error pertaining to the classification of the yarn in both rulings. This ruling serves to modify NY N304396 and NY N304440 with regard to the classification of the yarns. CBP’s determination with respect to the preferential tariff treatment of the yarns under the CTPA is not affected by this action. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. No. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed action was published on March 10, 2021, in Volume 55, Number 9, of the Customs Bulletin. One comment was received in response to this notice, supporting CBP’s modification of NY N304396 and NY N304440. FACTS: In NY N304396, the yarn is described as follows: [A] polyurethane elastomeric yarn core covered with either natural, synthetic or artificial fibers or their blends. The yarn is composed of 2-12 percent of polyurethane elastomeric (spandex) fibers and 88 - 98 percent of natural, synthetic or artificial fibers. The gimped yarn is used in the production of fabrics for jeans, sports and outdoor apparel. In NY N304440, the yarn is described as follows: [A] blend of polybutylene terephalate (PBT) and polyurethane elastomeric filament yarn core covered with either natural, synthetic or artificial fibers or their blends. The yarn is composed of 4 percent of polyurethane elastomeric (spandex) fibers combined with 16 percent PBT fibers, and 80 percent of natural, synthetic or artificial fibers. The gimped yarn is used in the production of fabrics for jeans, sports and outdoor apparel. Subsequent to the issuance of NY N304396 and NY N304440, CBP sent samples of the yarns from these two rulings to the CBP New York Laboratory. Laboratory report no. NY20200232, dated April 7, 2020, for the sample submitted with NY N304440, indicated the following regarding the sample: The sample, a core-spun yarn marked FABRICATO S.A., has a linear density of 581.8 dTex, and is constructed of non-twisted spandex monofilament wrapped with non-bleached cotton fibers that do not appear to be combed or mercerized. There is no apparent evidence of ring or compact spinning. The overall fiber content by weight: Percent Cotton 96.4 Spandex 3.6 . . . The NY laboratory amended laboratory report no. NY20200232 with the issuance of laboratory report no. NY20200232A, dated May 29, 2020, indicating the following regarding the sample: The sample, a yarn marked FABRICATO S.A., has a linear density of 581.8 Dtex or 17.18 Nm. It is constructed of one spandex monofilament that is wrapped with one multifilament polyester yarn. This spandex/polyester yarn is then wrapped with cotton fibers that do not appear to be combed, bleached or mercerized. There is no apparent evidence of ring or compact spinning. The overall fiber content by weight: Percent Cotton 79.4 Polyester 17.0 Spandex 3.6 . . . Lastly, CBP laboratory report no. NY20200233, dated April 7, 2020, for the sample submitted with NY N304396, indicated the following regarding the sample: The sample, a core-spun yarn marked FABRICATO S.A., has a linear density of 401.1 dTex, and is constructed of a non-twisted spandex monofilament wrapped with unbleached cotton fibers that do not appear to be combed or mercerized. There is no apparent evidence of ring or compact spinning. The overall fiber content by weight: Percent Cotton 93.8 Spandex 6.2 . . . ISSUE: What is the proper classification under the HTSUS for the subject merchandise? LAW AND ANALYSIS: Classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) is made in accordance with the General Rules of Interpretation (“GRI”). 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 may then be applied. The 2019 HTSUS provisions under consideration are as follows: 5205 Cotton yarn (other than sewing thread), containing 85 percent or more by weight of cotton, not put up for retail sale. 5206 Cotton yarn (other than sewing thread), containing less than 85 percent by weight of cotton, not put up for retail sale. 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. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the “official interpretation of the Harmonized System” at the international level. See 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). 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 id. The EN to 56.06 states in pertinent part, the following: These products are composed of a core, usually of one or more textile yarns, around which other yarn or yarns are wound spirally. Most frequently the covering threads completely cover the core, but in some cases the turns of the spiral are spaced; in the latter case, the product may have somewhat the appearance of certain multiple (folded), cabled or fancy yarns of Chapters 50 to 55, but may be distinguished from them by the characteristic of gimped yarn that the core does not itself undergo a twisting with the cover threads. The core of the gimped yarn of this heading is usually of cotton, other vegetable fibres or man-made fibres and the covering threads are usually finer and more glossy (e.g., silk, mercerised cotton or man-made fibres). Gimped yarns with cores of other materials are not necessarily excluded provided the product has the essential character of a textile article. Gimped yarns are used as a trimming and also very largely for the manufacture of such trimmings. Some, however, are also suitable for other uses, for example, as buttonhole cord, in embroidery or for tying parcels. In NY N304396 and NY N304440, CBP classified the yarns in subheading 5606.00.0010, HTSUSA, 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: Containing elastomeric filaments.” Upon further consideration, we have found this classification to be incorrect and that the yarns are instead classified as cotton 

Classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) is made in accordance with the General Rules of Interpretation (“GRI”). 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 may then be applied.The 2019 HTSUS provisions under consideration are as follows:5205 Cotton yarn (other than sewing thread), containing 85 percent or more by weight of cotton, not put up for retail sale. 5206 Cotton yarn (other than sewing thread), containing less than 85 percent by weight of cotton, not put up for retail sale.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.The Harmonized Commodity Description and Coding System Explanatory Notes(“ENs”) constitute the “official interpretation of the Harmonized System” at the international level. See 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). 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 id.The EN to 56.06 states in pertinent part, the following: These products are composed of a core, usually of one or more textile yarns, around which other yarn or yarns are wound spirally. Most frequently the covering threads completely cover the core, but in some cases the turns of the spiral are spaced; in the latter case, the product may have somewhat the appearance of certain multiple (folded), cabled or fancy yarns of Chapters 50 to 55, but may be distinguished from them by the characteristic of gimped yarn that the core does not itself undergo a