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NY 813327

August 22, 1995

CLA-2-54:S:N:N6:351 813327


TARIFF NO.: 5402.10.3020

Martha A. Pierce
Monsanto Company
800 N. Lindbergh Boulevard
St. Louis, MO 63167

RE: The tariff classification of nylon filament yarn from South Africa

Dear Ms. Pierce:

In your letters dated June 27 and July 27, 1995 you requested tariff classification and valuation rulings.

You have submitted a sample of a yarn whose product code is 1400 F204 T1937, manufactured by South African Nylon Spinners (SANS). It is a single nylon yarn which you indicate is composed of 204 filaments with zero twist. The yarn is not texturized. Your letter indicates that it has a tenacity of "88.7 cN/Decitex or 10.05 grams per denier," but in a telephone conversation with National Import Specialist Jeff Konzet on August 11, 1995, you indicated that the tenacity is 88.7 cN per Tex, not per Decitex.

The applicable subheading for item 1400 F204 T1937 will be 5402.10.3020, Harmonized Tariff Schedule of the United States (HTS), which provides for synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex; high tenacity yarn of nylon or other polyamides; single yarn; multifilament, untwisted or with twist of less than 5 turns per meter. The rate of duty will be 9.9 percent ad valorem.

You have also indicated that Monsanto produces nylon polymer in the United States and provides it to SANS to convert into nylon yarn. This is done by melting the chips and extruding them into filaments and further processing into yarn. In connection with this, you have requested a ruling on the "valuation" of this yarn. Specifically, you ask "Is the value of the finished product exported to the United States the value of SANS proposed conversion fee of $.80/lb. or is the value the conversion fee plus the value of the nylon polymer owned and furnished by Monsanto?...If the ruling is that Monsanto is required to pay duty based on the value of the nylon polymer plus the SANS conversion charges, can Monsanto bill SANS for a calculated amount of 50% of duties on the nylon portion only?"

There will be no allowance for the value of the supplied nylon polymer under subheading 9802.0050 or 9802.0080, HTS, which provide for articles exported for alterations or assembly, respectively. Duty will be charged on the total value of the finished yarns including both the costs of the supplied materials and the processing done abroad.

The question of valuation, and of what it would be in the event of a rebate or credit from SANS for part of the duty, is being referred to the Office of Regulations and Rulings, U.S. Customs Service Headquarters, 1301 Constitution Avenue, N.W., Washington D.C. 20229. A ruling will be issued to you from that office.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.


Jean F. Maguire
Area Director
New York Seaport

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