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HQ 966599




April 28, 2004

CLA-2: RR:CR:TE 966599 ASM

CATEGORY: CLASSIFICATION

TARIFF NO.: 5605.00.9000

Ms. Evelyn Edwards
TEXMAC, Inc.
3001 Stafford Drive
P.O. Box 668128
Charlotte, NC 28266-8128

RE: Modification of NY J81433; Metalized Polyester Embroidery Thread

Dear Ms. Edwards:

This letter involves the modification of Customs and Border Protection (CBP), Department of Homeland Security, New York Ruling (NY) J81433, dated March 11, 2003, concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of metalized polyester embroidery thread.

Upon review, the CBP has determined that the merchandise was erroneously classified in NY J81433. This ruling letter sets forth the correct classification determination.

Pursuant to section 625(c), Tariff Act of 1930, as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993) notice of the proposed revocation of NY J81433 was published on March 24, 2004, in Vol. 38, No. 13, of the Customs Bulletin. No comments were received in response to this notice.

FACTS:

The subject article is a metalized polyester gold embroidery thread. The thread is composed of polyester strip wrapped spirally (gimped) around a multifilament core which itself has no twist and does not twist with the strip. The strips are considered textile material for tariff classification purposes. In NY J81433, the subject thread was classified in subheading 5606.00.0090, HTSUSA, which provides , in pertinent part, for gimped yarn, and strip and the like of heading 5404 or 5405, gimped.

ISSUE:

What is the proper classification for the merchandise?

LAW AND ANALYSIS:

Classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) 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 heading and legal notes do not otherwise require, the remaining GRI may then be applied. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. 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 T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

The subject article is classifiable pursuant to GRI 1 and is specifically described in Heading 5605, HTSUSA, which provides for “Metallized yarn, whether or not gimped, being textile yarn or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal.” In addition, the 56.05 EN states that the heading covers:

Yarn of any textile material (including monofilament, strip and the like, and paper yarn) covered with metal by any other process.

The 56.05 EN further states that the heading covers products consisting of a core of plastic film coated with “metal dust, sandwiched by means of an adhesive between two layers of plastic film.” The EN also provides exemplars of the types of yarns covered by heading 5605, e.g., fancy cords as used by confectioners, obtained by twisting together two or more metalized yarns.” Although the yarn at issue is gimped, it is more specifically and completely described as a metalized yarn of heading 5605, HTSUSA. Furthermore, by the terms of heading 5606, HTSUSA, the subject article is excluded from heading 5606, HTSUSA, which provides for “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” beacause the heading specifically excludes gimped metalized yarns of heading 5605. See EN to 56.06.

Clearly, the subject merchandise meets the terms of heading 5605, HTSUSA, and is in accordance with the EN. Additionally, Section XI EN, General Note (I)(B)(2), Table I (page 920, 2002 Ed.) places metalized yarn in heading 56.05 “in all cases.” Furthermore, in two recent rulings CBP classified metalized yarn in subheading 5605.00.9000, HTSUSA. See Headquarters Ruling (HQ) 964997, dated May 20, 2002; and NY J82791, dated April 4, 2003. Therefore, by virtue of GRI 1, the metalized polyester gold embroidery thread is properly classified under subheading 5605.00.90, HTSUSA, which provides for metalized yarn.

In view of the foregoing, we have determined that NY J81433, incorrectly classified the metalized polyester gold embroidery thread.

HOLDING:

NY J81433, dated March 11, 2003, is hereby modified.

The subject merchandise, identified as metalized polyester gold embroidery thread, is correctly classified in subheading 5605.00.9000, HTSUSA, which provides for, “Metalized yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal: Other.” The general column one duty rate is 13.2 percent ad valorem. The textile category is 201.

The designated textile and apparel category may be subdivided into parts. If so, the visa and quota requirements applicable to the subject merchandise may be affected. Since 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 the importer check, close to the time of shipment, the Textile Status Report for Absolute Quotas, previously available on the CBP Electronic Bulletin Board (CEBB), which is available on the CBP Bulletin Website at www.customs.treas.gov.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, the importer should contact the local CBP office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

Sincerely,

Myles B. Harmon, Director
Commercial Rulings Division

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