HS 520546 Measuring per single yarn less than 125 decitex but not less than 106,38 decitex (exceeding 80 metric number but not exceeding 94 metric number per single yarn)

The standard Most Favored Nation (MFN) duty rate for HS code 520546 (Cotton yarn (other than sewing thread), not put up for retail sale, containing 85% or more by weight of cotton, measuring per single yarn less than 125 decitex but not less than 106.38 decitex) is typically 3.5% ad valorem. However, many countries offer preferential duty rates under trade agreements. For example, under the USMCA, goods originating from Canada or Mexico may enter duty-free. Importers should consult the specific tariff schedule of the importing country and verify the country of origin to determine applicable preferential rates. The USITC Harmonized Tariff Schedule and the EU's TARIC database are authoritative sources for this information.

The decitex (dtex) measurement refers to the linear density of the yarn, specifically the weight in grams per 10,000 meters. For HS code 520546, the yarn must have a linear density less than 125 dtex but not less than 106.38 dtex. This range corresponds to a metric number (Nm) of single yarn exceeding 80 Nm but not exceeding 94 Nm. The metric number is the number of 1-meter lengths in one gram of yarn (Nm = 1/dtex * 10,000). This precise measurement is critical for correct classification, as yarns falling outside this decitex/metric number range would be classified under different HS codes.

When importing cotton yarn classified under HS code 520546, standard import documentation is required. This typically includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list; a bill of lading or air waybill for transport; and a certificate of origin to claim preferential duty rates if applicable. For cotton products, a declaration of origin for the cotton content may also be necessary, especially if claiming benefits under specific trade agreements. Importers and customs brokers should verify the specific documentation requirements with the customs authority of the importing country.

Certainly. Let's assume a shipment of cotton yarn classified under HS code 520546 is imported into the United States, and the standard MFN duty rate of 3.5% ad valorem applies. If the commercial invoice value of the shipment is $10,000 USD, the import duty would be calculated as follows: Duty = Value × Duty Rate. Duty = $10,000 USD × 3.5% = $350 USD. In this example, the importer or customs broker would be responsible for paying $350 USD in import duties. If a preferential rate applied, for instance, a 0% duty under a specific trade agreement, the duty amount would be $0.

Several trade agreements can significantly reduce or eliminate import duties for HS code 520546, depending on the importing country and the origin of the goods. For imports into the United States, agreements like the USMCA (United States-Mexico-Canada Agreement) may provide duty-free entry for qualifying goods from Canada and Mexico. For imports into the European Union, agreements with countries like South Korea or trade preference programs for developing nations can offer reduced rates. The UK also has various trade agreements post-Brexit. Importers must ensure the goods meet the rules of origin stipulated in the relevant trade agreement to benefit from these preferential rates. Consulting the official tariff databases (e.g., USITC, EU TARIC, UK Trade Tariff) is essential for verifying eligibility.