HS 520624 Measuring less than 192,31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number)

For HS code 5206.24, which covers cotton sewing thread, not put up for retail sale, measuring less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number), the Most Favored Nation (MFN) duty rate is typically 4.00% ad valorem. However, preferential duty rates may apply under various trade agreements. For example, imports 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 duty-free entry (Free). It is crucial to verify the specific preferential rate applicable to the country of origin and the terms of the relevant trade agreement. Consult the USITC Harmonized Tariff Schedule or the EU TARIC database for the most current and precise rates.

The duty for HS code 5206.24 is generally calculated on an ad valorem basis, meaning it's a percentage of the declared value of the imported goods. For instance, if the MFN duty rate is 4.00% and you import 1,000 kilograms of sewing thread valued at $5,000 USD, the duty calculation would be: Duty = Value × Duty Rate = $5,000 USD × 4.00% = $200 USD. If a specific duty or a combination of specific and ad valorem duties applies, the calculation would be adjusted accordingly. Always refer to the official tariff schedule for the exact duty basis and rate.

The primary classification criteria for HS code 5206.24 are: 1. Material: The thread must be made of cotton. 2. Type: It must be sewing thread. 3. Presentation: It must not be put up for retail sale. 4. Linear Density: It must measure less than 192.31 decitex but not less than 125 decitex. This is equivalent to exceeding 52 metric number (Nm) but not exceeding 80 metric number (Nm). The metric number (Nm) is defined as the number of 1-gram skeins of yarn that are 1 meter in length. A higher Nm indicates a finer yarn. Importers must ensure their product meets all these criteria to be correctly classified under this code.

When importing goods classified under HS code 5206.24, standard import documentation is generally 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 for transport. Crucially, to claim preferential duty rates under trade agreements, a Certificate of Origin (COO) issued by the exporting country's competent authority or a declaration of origin from the exporter, compliant with the specific agreement's rules, will be necessary. For cotton products, documentation verifying the origin of the cotton itself might also be requested to ensure compliance with rules of origin. Customs brokers should verify the exact requirements with the importing country's customs authority.

Several trade agreements can provide preferential duty rates, often including duty-free entry, for goods classified under HS code 5206.24, depending on the country of origin. Examples of agreements that may offer such benefits include the US Free Trade Agreements with countries like South Korea (KORUS FTA), Australia (AUSFTA), Chile (CLTCL), and Colombia (CTPA). The European Union's network of Association Agreements and Free Trade Agreements also provides preferential access for many countries. The UK also has its own set of trade agreements post-Brexit. Importers should consult the specific tariff schedule of the importing country (e.g., USITC, EU TARIC, UK Trade Tariff) and the text of the relevant trade agreement to confirm eligibility and any specific conditions or rules of origin that must be met to benefit from reduced or eliminated duties.