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NY 873074




April 10, 1992

CLA-2-51:S:N:N3H:351 873074

CATEGORY: CLASSIFICATION

TARIFF NO.: 5107.10.0000; 5509.52.0000

Ms. Darlene DiBernardo
F.W. Myers and Co., Inc.
P.O. Box 188
Champlain, N.Y. 12919

RE: The tariff classification of wool and polyester yarns spun in Canada from foreign and domestic fibers (tops)

Dear Ms. DiBernardo:

In your letter dated March 25, 1992, you requested a tariff classification ruling on behalf of your client, Cleyn and Tinker (1989) Inc.

You submitted samples of two different yarns on cones, each weighing approximately 11 ounces. Each is a two-ply staple fiber yarn with a final S-twist. You have also submitted a photograph of one of these yarns put up on a beam, and four photographs of the yarns put up on beams with harness frames, reeds and heddles, ready for attachment to a weaving machine.

In your letter, you indicate that one of the yarns is 100% wool, and that it is spun in Canada from wool tops purchased "offshore," which we assume means that it is from a country other than Canada or the United States. The other yarn is 55% polyester/45% wool; it is spun in Canada from the same "offshore" wool tops noted above, and from polyester tops from "domestic sources" (which we assume means they are of Canadian origin). In both cases, the following steps take place in Canada: (1) wool or polyester tops are dyed prior to spinning, (2) they are subject to a drawing operation to align (comb) the fibers, (3) they are spun into a singles yarn and (4) they are finally twisted into two-ply yarns.

The yarns are either imported into the United States on the cones described above, or unwound from such cones onto a "warp" beam. The beams of yarn are either imported in that condition into the United States, or fitted with harness frames, reeds and heddles and then imported. The beams, harness frames, reeds and heddles are returned to Canada after use, and repeatedly re-used for subsequent shipments.

The applicable subheading for the 100% wool yarns, whether imported on cones, on beams or on beams fitted with harness frames, reeds and heddles, will be 5107.10.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for yarn of combed wool, not put up for retail sale; containing 85 percent or more by weight of wool. The duty rate will be 9% ad valorem.

The applicable subheading for the 55% polyester/45% wool yarns, whether imported on cones, on beams or on beams fitted with harness frames, reeds and heddles, will be 5509.52.0000, HTS, which provides for yarn (other than sewing thread) of synthetic staple fibers, not put up for retail sale; other yarn, of polyester staple fibers; mixed mainly or solely with wool or fine animal hair. The duty rate will be 15% ad valorem.

Goods classifiable under subheading 5107.10.0000, HTS, which have originated in the territory of Canada, will be entitled to a 5.4% ad valorem rate of duty under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations. Based on the facts you have presented, the 100% wool yarn may qualify for this reduced rate under HTS General Note 3(c)(vii)(R)(11)(cc).

Goods classifiable under subheading 5509.52.0000, HTS, which have originated in the territory of Canada, will be entitled to a 9% ad valorem rate of duty under the FTA upon compliance with all applicable regulations. Based on the facts you have presented, the 55% polyester/45% wool yarn may qualify for this reduced rate under HTS General Note 3(c)(vii)(R)(11)(hh).

Cones, beams and other packaging imported with yarns are normally treated as part of packing and classified with the yarns. However, you have asked whether the beams, harness frames, reeds and heddles would be eligible for status as articles of international traffic under the meaning of Section 10.41 of the Customs Regulations. On that particular issue, we recommend that you write directly to the Office of Regulations and Rulings, Attention: Carrier Rulings Branch, U.S. Customs Service, 1301 Constitution Ave. N.W., Washington D.C. 20229. Include a copy of this ruling letter with your request.

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.

Sincerely,

Jean F. Maguire
Area Director

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