United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1999 NY Rulings > NY D88230 - NY D88279 > NY D88276

Previous Ruling Next Ruling

March 3, 1999

CLA-2-54:RR:NC:TA:351 D88276


TARIFF NO.: 5403.31.0040

Mr. Mustafa
Colors Trading Inc.
159 Park Avenue
Rutherford, NJ 07070

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of yarn from Mexico; Article 509

Dear Mr. Mustafa:

In your letter received February 18, 1999, you requested a ruling on the status of yarn from Mexico under the NAFTA, and a ruling on yarn produced entirely in India.

You submitted three samples of yarn. You state that all three samples are 100 percent viscose rayon multifilament single yarn. You stated in a telephone conversation that all of the yarns weigh in excess of 85 grams, including the supports. They are not textured, they are not high tenacity yarns, they do not have a final “Z” twist, and they have a twist which does not exceed 120 turns per meter.

In your letter you described the processing that the yarn undergoes. You presented three scenarios. In the first scenario, yarn extruded in Mexico is twisted and dyed in Mexico. It is then shipped to India where it is wound onto spools of 5,000 meter lengths. In the second scenario, yarn is extruded in Mexico. It is shipped to India where it is twisted, dyed and wound onto spools of 5,000 meter lengths. In the last scenario, yarn is extruded, dyed, twisted and wound onto spools of 5,000 meters in length. These operations all take place in India. You ask what is the classification, what are the requirements of quota and visa, if any, and what is the status under the NAFTA, for the first two scenarios. The applicable tariff provision for the yarns will be 5403.31.0040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for artificial filament yarn, other yarn, single, of viscose rayon, untwisted or with a twist not exceeding 120 turns/m, multifilament, with twist of 5 turns or more per meter. The general rate of duty will be 10 percent ad valorem.

The merchandise of scenarios 1 and 2 do not qualify for preferential treatment under the NAFTA. General Note 12(l) of the HTSUSA states:

Transshipment. A good shall not be considered to be an originating good by reason of having undergone production that satisfies the requirement of this note if, subsequent to that production, the good undergoes further production or any other operation outside the territories of the NAFTA parties, other than unloading, reloading or any other operation necessary to preserve it in good condition or to transport the good to the territory of Canada, Mexico and/or the United States.”

In both scenario 1 and scenario 2, the yarn is sent to India where it undergoes a further operation or operations. You state in your letter that the yarn, in scenario 1, although extruded in Mexico, is then shipped to India for dying, twisting and winding on spools. In scenario 2, the yarn is extruded, twisted and dyed in Mexico. It is sent to India for winding onto spools of specific lengths. The goods in both instances, are considered to be transshipped and no longer eligible for consideration under the NAFTA.

As you stated in your telephone conversation, you were not asking for any NAFTA consideration for the third scenario as the yarn was completely a product of India.

Viscose rayon yarn falls within textile category designation 606. Based upon international textile trade agreements products of India are subject to quota and the requirement of a visa. Products within textile category designation 606, the product of Mexico, are not subject to quota nor the requirement of a visa.

The designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes. To obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

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 Camille Ferraro at 212-637-7086.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.


Robert B. Swierupski

Previous Ruling Next Ruling

See also: