HS 500300 Not carded or combed

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What products does HS 500300 cover?

This subheading covers silk waste, including noils and garnetted waste, that has not been carded or combed. According to the World Customs Organization's Harmonized System Nomenclature, this category specifically includes raw silk fibers that have been broken, cut, or otherwise processed into a state unsuitable for direct spinning but not yet subjected to the carding or combing processes. The US International Trade Commission (USITC) Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that this classification applies to materials derived from silk production or processing that are in a loose, fibrous state, ready for further manufacturing but not yet aligned or prepared for spinning.

What falls outside HS 500300?

The following products are excluded from HS 500300: silk fibers that have been carded or combed, which fall under HS 500400; spun silk yarns, classified under HS 500500; and woven fabrics of silk, which are found in Chapter 50. Also excluded are silk noils that have undergone any form of alignment or preparation for spinning, and garnetted silk waste that has been reprocessed into sliver or roving. For instance, silk yarn made from waste would not be classified here, nor would finished silk fabrics.

What are common classification mistakes for HS 500300?

A common error is misclassifying silk waste that has undergone some degree of carding or combing. According to General Rule of Interpretation (GRI) 3(b) for the interpretation of the Harmonized System, mixtures are classified according to the material that gives them their essential character. Importers may incorrectly classify partially processed silk waste under HS 500300 when it should be classified under a more advanced stage, such as HS 500400 if it has been carded or combed. Conversely, fully processed yarns or fabrics are often mistakenly placed in this waste category.

How should importers classify products under HS 500300?

The correct procedure for classifying products under HS 500300 involves a thorough examination of the material's processing stage. Importers and customs brokers must verify that the silk waste has not undergone carding or combing. This requires reviewing supplier documentation, product specifications, and, if necessary, obtaining samples for physical inspection or laboratory analysis. Consulting the WCO HS Explanatory Notes and the specific tariff schedules of the importing country, such as the USITC HTS or the UK Trade Tariff, is crucial for accurate determination.

How is the duty calculated for products under HS 500300?

A bale of silk noils weighing 100 kilograms, declared at a customs value of $500 USD, would attract a US duty of $35.00. This is calculated using the Most Favored Nation (MFN) duty rate of 3.5% ad valorem, applied to the declared value. The calculation is: 3.5% of $500 USD = $17.50. However, if the duty were based on weight, for example, a specific duty of $0.35 per kilogram, the duty would be $0.35/kg * 100 kg = $35.00. This is calculated using the MFN rate published in the USITC Harmonized Tariff Schedule.

Which trade agreements reduce duties for HS 500300?

Several free trade agreements may reduce the applicable duty rate for HS 500300, including the Generalized System of Preferences (GSP) for developing countries, which can offer duty-free entry or reduced rates. For example, silk waste originating from Vietnam, a GSP beneficiary, might be eligible for preferential treatment. Documentation required to claim these preferences typically includes a GSP Form A certificate of origin. Specific bilateral agreements, like those with countries that are part of the EU or UK trade networks, may also offer reduced rates or duty-free status, requiring an EUR.1 movement certificate.

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