HS 520645 Measuring per single yarn less than 125 decitex (exceeding 80 metric number per single yarn)

The Most Favored Nation (MFN) duty rate for HS code 520645, which covers "Cotton yarn (other than sewing thread) of synthetic staple fibres, not put up for retail sale, measuring less than 80 metric number per single yarn, of a value not exceeding 125 decitex", is 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 the United States (US) may be eligible for duty-free entry (Free). It is crucial to consult the specific trade agreement and verify eligibility based on rules of origin. Source: USITC Harmonized Tariff Schedule.

HS code 520645 is specifically for cotton yarn (not sewing thread, not put up for retail sale) made from synthetic staple fibers. The key classification criteria are: 1. Material: Must be cotton yarn. 2. Fiber Type: Must be synthetic staple fibers. 3. Presentation: Not sewing thread and not put up for retail sale. 4. Yarn Measurement: The yarn must measure less than 80 metric number per single yarn, which is equivalent to exceeding 125 decitex. If the yarn is made from natural fibers like cotton, it would fall under chapter 52. If it's made from synthetic staple fibers, it falls under chapter 55. This specific code is for cotton yarn of synthetic staple fibers, implying a blend or a specific processing context. It's essential to verify the exact composition and processing to ensure correct classification. Consult the Explanatory Notes to the Harmonized System for detailed guidance.

For importing goods classified under HS code 520645, 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 under trade agreements, a Certificate of Origin (COO) is mandatory. The COO must be issued by the competent authority in the exporting country and certify that the goods meet the rules of origin stipulated in the relevant trade agreement. Importers should also be prepared to provide laboratory test reports or manufacturer declarations confirming the fiber content and yarn specifications if requested by customs authorities to verify classification.

Certainly. Let's assume an importer brings 1,000 kilograms of yarn classified under HS code 520645 into the United States, and the MFN duty rate applies. The MFN duty rate for this code is 4.00% ad valorem. If the declared value of the 1,000 kg of yarn is $5,000 USD, the import duty calculation would be: Duty Amount = Declared Value × Duty Rate. Duty Amount = $5,000 USD × 4.00% (or 0.04). Duty Amount = $200 USD. Therefore, the import duty for this shipment would be $200 USD. This calculation is based on the value of the goods. Note that for some HS codes, duties can also be based on weight or a combination of value and weight (compound duties), but for 520645, it is typically ad valorem.

Several trade agreements provide preferential duty rates, often resulting in duty-free entry, for goods classified under HS code 520645. These include agreements like the US-Australia Free Trade Agreement (AU), US-Bahrain FTA (BH), US-Chile FTA (CL), US-Colombia Trade Promotion Agreement (CO), US-Israel FTA (IL), US-Jordan FTA (JO), US-Korea FTA (KR), US-Morocco FTA (MA), US-Oman FTA (OM), US-Panama Trade Promotion Agreement (PA), US-Peru Trade Promotion Agreement (PE), US-Singapore FTA (SG). To benefit from these preferential rates, importers must ensure the yarn originates from the partner country and meets the specific rules of origin outlined in each agreement, typically requiring a valid Certificate of Origin. Always verify the current status and specific provisions of the applicable trade agreement.