HS 520615 Measuring less than 125 decitex (exceeding 80 metric number)

The standard Most Favored Nation (MFN) duty rate for HS code 520615, which covers "Cotton yarn (other than sewing thread) containing 85% or more by weight of cotton, not put up for retail sale, measuring less than 125 decitex (exceeding 80 metric number)", is typically 9.2% ad valorem in the United States. However, preferential duty rates are available under various Free Trade Agreements (FTAs) and trade programs. For example, goods originating from 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 may receive duty-free entry (0.00%). Importers must ensure they have the necessary proof of origin documentation to claim these preferential rates. Always consult the latest Harmonized Tariff Schedule of the United States (HTSUS) for the most current rates and specific country eligibility.

To classify goods under HS code 520615, two primary criteria must be met: 1) The material must be cotton yarn, not sewing thread, and contain 85% or more by weight of cotton. 2) The yarn must not be put up for retail sale. 3) Crucially, the yarn must measure less than 125 decitex. Decitex (dtex) is a unit of linear density, representing the mass in grams per 10,000 meters of yarn. Measuring less than 125 dtex is equivalent to having a metric number exceeding 80 (where metric number is defined as the length in kilometers of yarn weighing one kilogram). Verification of the yarn's decitex measurement is essential for correct classification.

For importing goods under HS code 520615, standard import documentation such as a commercial invoice, packing list, and bill of lading or air waybill is required. When claiming preferential duty rates under an FTA, a Certificate of Origin (COO) or a declaration of origin, as stipulated by the specific trade agreement, is mandatory. This document must be completed by the exporter and provide evidence that the goods meet the rules of origin for the exporting country. Customs brokers should verify the specific requirements of the relevant FTA, as some may allow for origin declarations on the commercial invoice or other documents in lieu of a separate COO, especially for lower value shipments.

The import duty for HS code 520615 is typically calculated on an ad valorem basis, meaning it is a percentage of the declared customs value of the goods. For instance, if the standard MFN duty rate is 9.2% and you import 1,000 kilograms of yarn 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 × 9.2% = $5,000 × 0.092 = $460 USD. If the yarn originated from a country with a preferential duty rate of 0.00%, the duty would be $0 USD, provided all conditions for the preferential treatment are met and documented.

Several trade agreements can significantly impact the duty rates for HS code 520615. Key agreements include the United States-Mexico-Canada Agreement (USMCA), which may offer preferential rates for goods originating from Canada and Mexico, though specific yarn classifications and rules of origin must be met. Other agreements like the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) can also provide reduced or zero duties for qualifying goods from member countries. Additionally, bilateral FTAs with countries like South Korea (KORUS FTA) and Chile (US-Chile FTA) are crucial. Importers should consult the HTSUS, specifically the "Special Provisions" and "General Notes," to identify applicable FTAs and their associated duty rates and staging categories for HS code 520615.