HS 510610 Containing 85 % or more by weight of wool

The Most Favored Nation (MFN) duty rate for HS code 510610 can vary by country. For example, the United States applies a 3.80% ad valorem duty. Canada's rate is 5.5% ad valorem. The European Union's rate under TARIC is 3.80% ad valorem, and the United Kingdom's rate is 3.80% ad valorem. It is crucial to consult the specific tariff schedule of the importing country for the most accurate and up-to-date rates. Many trade agreements offer preferential duty rates, often resulting in duty-free entry for goods originating from partner countries. For instance, goods originating from Australia (AU), Bahrain (BH), Chile (CL), Colombia (CO), Israel (IL), Jordan (JO), South Korea (KR), Morocco (MA), Oman (OM), Peru (PE), Singapore (SG), and others may be eligible for free entry under specific trade agreements, provided all rules of origin are met.

HS code 510610 specifically covers yarn of carded wool. The primary classification criterion is the fiber content: the yarn must contain 85% or more by weight of wool. The term 'carded wool' refers to wool fibers that have undergone a carding process, which untangles and aligns the fibers, preparing them for spinning. This process distinguishes it from combed wool yarns, which fall under HS code 5107. Verification of the fiber composition, typically through laboratory analysis or manufacturer's declaration, is essential for correct classification. The WCO Harmonized System Explanatory Notes provide further guidance on the definition of wool and the carding process.

The import duty for HS code 510610 is typically calculated on an ad valorem basis, meaning it is a percentage of the declared customs value of the goods. For example, if the MFN duty rate is 3.80% and a shipment of wool yarn valued at $10,000 USD is imported into the United States, the duty would be calculated as follows: Duty = Value × Duty Rate = $10,000 × 3.80% = $380.00 USD. Some countries may also apply specific duties (per unit) or a combination of ad valorem and specific duties, depending on the specific tariff provision and any applicable trade agreements. Always verify the duty calculation basis with the importing country's customs authority.

When importing yarn classified under HS code 510610, standard import documentation is generally required, including a commercial invoice, packing list, and bill of lading or air waybill. Crucially, importers must be prepared to provide proof of fiber content to substantiate the 85% or more wool classification. This can often be a manufacturer's declaration or a certificate of analysis from an accredited laboratory. If claiming preferential duty rates under a trade agreement, a certificate of origin or a declaration of origin meeting the specific requirements of that agreement is mandatory. Customs brokers play a vital role in ensuring all necessary documents are accurately prepared and submitted to customs authorities to facilitate smooth clearance.

Several major trade agreements can significantly reduce or eliminate duties for HS code 510610. For instance, the United States has Free Trade Agreements (FTAs) with countries like Chile (USCMA), South Korea (KORUS), and Australia, which may offer preferential rates or duty-free entry if the yarn originates from these countries and meets the rules of origin. The European Union has numerous association and free trade agreements with countries in its neighborhood and beyond, such as agreements with the UK, Canada (CETA), and various Mediterranean countries. Similarly, the UK has its own set of trade agreements post-Brexit. Importers must consult the specific trade agreement between the exporting and importing countries and ensure compliance with its rules of origin to benefit from reduced or zero duties.