HS 520411 Not put up for retail sale

For HS code 520411 (Cotton sewing thread, not put up for retail sale), the Most Favored Nation (MFN) duty rate is typically 4.00% ad valorem. However, preferential rates significantly reduce or eliminate this duty for goods originating from countries with trade agreements with the importing nation. For example, under various Free Trade Agreements (FTAs), duty rates can be Free (0.00%) for countries such as 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, provided all rules of origin are met. Always consult the specific tariff schedule of the importing country for the most accurate, up-to-date preferential rates applicable to your origin country.

HS code 520411 covers sewing thread made of cotton, which is not packaged in a manner intended for direct sale to individual consumers. This typically means the thread is supplied in larger spools, cones, or skeins intended for industrial or commercial use, rather than small, retail-ready packages like bobbins or small spools found in sewing kits. The key distinction lies in the presentation and intended end-use; if the packaging is designed for direct consumer purchase, it would likely fall under a different subheading (e.g., 520419 for put up for retail sale).

When importing cotton sewing thread under HS 520411, standard import documentation is required. This includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list; and a bill of lading or air waybill. Crucially, to claim preferential duty rates, a Certificate of Origin (COO) or a declaration of origin, compliant with the specific requirements of the relevant trade agreement, is mandatory. Importers should also be prepared to provide product specifications or samples if requested by customs authorities to verify the cotton content and classification.

The import duty for HS 520411 is generally calculated on an ad valorem basis, meaning it is a percentage of the declared customs value of the imported goods. For instance, if the MFN duty rate is 4.00% and you import 1,000 kilograms of cotton sewing thread with a declared customs value of $5,000 USD, the duty calculation would be: Duty Amount = Customs Value × Duty Rate. In this example: Duty Amount = $5,000 USD × 4.00% = $200 USD. If a specific duty applies (e.g., per unit), the calculation would be Rate per Unit × Quantity. Always verify the applicable duty rate and valuation rules with the importing country's customs authority.

Several trade agreements provide preferential duty treatment for HS 520411. Notably, agreements like the United States-Mexico-Canada Agreement (USMCA), the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR), and various bilateral FTAs between the EU and partner countries, as well as the UK's trade agreements post-Brexit, often grant duty-free access (0.00%) for qualifying goods. The specific list of countries benefiting from duty-free status, such as Australia (AU), Chile (CL), South Korea (KR), and Singapore (SG), is extensive and depends on the importing country's trade network. It is imperative to confirm eligibility and compliance with the rules of origin for each specific agreement.