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 > 1990 HQ Rulings > HQ 0082527 - HQ 0082703 > HQ 0082599

Previous Ruling Next Ruling


HQ 082599


November 21, 1988

CLA-2 CO:R:C:G 082599 DSN

CATEGORY: CLASSIFICATION

TARIFF NO.: 5509.69.60

James F. O'Hara, Esquire
Stein Shostak Shostak & O'Hara
3580 Wilshire Boulevard
Suite 1240
Los Angeles, California 90010-2597

RE: Binding HTSUSA classification of certain yarns of IA 43/86 HLR 080273 of June 18, 1987

Dear Mr. O'Hara:

This is in response to your letters of September 24, 1987 and August 1, 1988, on behalf of your client Jary, Inc., in which you requested a binding ruling under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), concerning yarn that was the subject of IA 43/86, Headquarters Ruling Letter (HRL) 080273 of June 18, 1987. We are also addressing your request for an HTSUSA ruling on four additional samples of yarns. Both requests concern yarns allegedly put up for retail sale.

FACTS:

In IA 43/86 we were asked to give a classification ruling under the Tariff Schedules of the United States Annotated (TSUSA), regarding whether certain one pound cones of yarns were classified under the provisions for yarn put up for handwork, item 310.93, TSUSA, or as yarn wholly of noncontinuous man-made fibers, item 310.50, TSUSA. We ruled that the yarn was classified under item 310.5049, TSUSA, as yarn wholly of noncontinuous man-made fibers, plied, of acrylic. We also gave a non-binding HTSUSA classification on these yarns. They were classified under subheading 5511.10.0030, HTSUSA, 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.

You then requested reconsideration of the TSUSA classification. In this reconsideration (HRL 080743 of August

18, 1987), we confirmed our determination in IA 43/86. We also noted that under the proposed HTSUSA, the subject yarn would likely be classified on the basis that it is put up for retail sale.

On September 24, 1987, you requested a binding HTSUSA ruling for the IA 43/86 yarn. In the interim, the customhouse broker for Jary, Inc., requested a binding HTSUSA ruling on similar yarn as well as other cones of yarns. Our New York office responded to this request. In its ruling, New York Letter (NYL) 828937 of June 23, 1988, the yarns in question were classified under subheadings 5509.32.0000, 5509.69.6000 and 5605.00.0000, respectively, as yarns, of synthetic staple fibers, not put up for retail sale.

The four additional samples submitted are unsupported spun man-made fiber, plied yarns. The sample labelled "Capri" is composed of 70 percent acrylic and 30 percent nylon. According to our laboratory analysis, it weighs 461 grams and has a decitex of 3383. The sample labelled "Peluche" is composed of 80 percent acrylic and 20 percent nylon; it weighs 461 grams and has a decitex of 4998. The sample labelled "Rayito" is composed of 73 percent acrylic and 27 percent nylon; it weighs 466 grams and has a decitex of 2662. The sample labelled "Bulky" is composed of 100 percent acrylic; it weighs 475 grams and has a decitex of 5129.

ISSUE:

Whether the yarn which was the subject of IA 43/86 and the four additional samples are considered yarns put up for retail sale.

LAW AND ANALYSIS:

Yarns put up for retail sale are provided for in chapters 50, 51, 54 and 55, HTSUSA. Section XI, Note 4(A)(a) and (b) provides that for the purposes of chapters 50, 51, 52, 54 and 55, the expression "put up for retail sale" in relation to yarn means, subject to the exceptions in paragraph (B), yarn (single, multiple (folded) or cabled) put up:

(a) On cards, reels, tubes or similar supports, of a weight (including support) not exceeding:

(i) 85 g in the case of silk, waste silk or man-made filament yarn; or

(ii) 125 g in other cases;

(b) In balls, hanks or skeins of a weight not exceeding:

(i) 85 g in the case of man-made filament yarn of of less than 3000 decitex, silk or silk waste;

(ii) 125 g in the case of all other yarns of less than 2000 decitex; or

(iii) 500 g in other cases.

With respect to the yarn at issue in IA 43/86, Cone A was described as being of non-continuous man-made fiber, composed of 80 percent acrylic and 20 percent nylon. The cone weighed approximately one pound and contained about 1091 yards of yarn. Cone A was packed in a plastic bag which contained a paper label giving fiber content, yardage, net weight and care instructions. The yarn was primarily used in producing knitted articles on hand and electrically-operated knitting machines. Cone B had no label and was submitted only to show the size of cones sold to industrial users. No classification of Cone B was requested.

Based on further analysis of Cone A, we have concluded pursuant to Note 4(A)(a)(ii), that this yarn does not meet the requirement of yarns put up for retail sale. The yarn was other than silk, silk waste or man-made filament. It was put up on a cone or tube and weighed over 125 grams. Therefore, the yarn cannot be considered to be "put up for retail sale" within its tariff meaning even though similar yarn put-ups may in fact be sold at retail.

With respect to the four samples recently submitted, they too do not fit within the purview of Section XI, note 4(A). These yarns are not on cards, reels, tubes or similar supports. As previously stated, they are unsupported cones of spun, plied yarn. Moreover, these yarns are not put up in balls, hanks or skeins. According to the Modern Textile & Apparel Dictionary, a ball is defined as a form of knitting yarn ready for use. A hank is defined as a skein of reeled yarn. A skein is defined as an appreciable length of yarn or thread that has been wound onto a reel or swift from some machine or device.

These yarns are not considered balls because they are not ready for use, and they are cone shaped instead of being round. These samples resemble yarns which were initially wrapped on a cone, the cone was removed, and the yarn ends were tied together in a manner to keep their cone shape. It appears that the cone could easily be re-inserted after importation into the United States. Moreover, the yarns are neither hanks or skeins because they are not of reeled yarn nor wound onto a reel or swift from some machine. Since these yarns do not comply with the above definitions, their weight in grams is irrelevant.

We note that these samples do not resemble yarns of the type normally sold at retail. Yarns sold at retail are finished looking and are ready for immediate use. Yarns at retail have a flowing motion when the yarn is pulled from the center, unlike the samples at issue. Commercial reality dictates that yarns be in that condition. These yarns require further processing in order to conform with the trade.

HOLDING:

In view of the foregoing, the yarns that were the subject of IA 43/86 and the four additional samples are classified under 5509.69.60, HTSUSA, which provides for yarn (other than sewing thread) of synthetic staple fibers, not put up for retail sale, other yarn, of acrylic or modacrylic staple fibers, other textile category 607, and dutiable at the rate of 15 percent ad valorem. This classification decision is under the HTSUSA, effective January 1, 1989, subject to changes in the law before the effective date.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling

See also: