HS 521041 Of yarns of different colours

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What products does HS 521041 cover?

This subheading covers woven fabrics of cotton, containing less than 85% by weight of cotton, whether or not in pieces, of yarns of different colours. According to the World Customs Organization's Harmonized System Nomenclature, this category specifically applies to fabrics where the constituent yarns are dyed to produce a pattern or design, differentiating them from fabrics woven from undyed yarns or yarns of a single colour. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm this scope, focusing on the distinct coloration of the yarns used in the weaving process.

What falls outside HS 521041?

The following products are excluded from HS 521041: woven fabrics of cotton where the yarns are not of different colours, such as plain dyed fabrics or those printed after weaving. Also excluded are fabrics made from synthetic or artificial staple fibres, or those containing significant percentages of other fibres that would change their primary classification under Chapter 52. For instance, fabrics primarily of polyester with a small cotton content would be classified elsewhere, and fabrics printed with designs after weaving would fall under a different subheading within heading 5210.

What are common classification mistakes for HS 521041?

A common error is misinterpreting "yarns of different colours" to include fabrics that are printed after weaving. General Rule of Interpretation (GRI) 3(b) for the interpretation of the Harmonized System emphasizes that goods are to be classified according to the essential character of the product. If the design is achieved through printing on a single-coloured fabric, it would not meet the criteria for yarns of different colours. Importers may also incorrectly classify fabrics based solely on the cotton content without considering the yarn coloration.

How should importers classify products under HS 521041?

The correct procedure for classifying products under HS 521041 involves a thorough examination of the fabric's construction and the origin of its colour. Importers and customs brokers must verify that the fabric is woven, composed of cotton (or predominantly cotton), and that the colouration is inherent in the yarns themselves, creating a patterned effect during the weaving process. Consulting the official tariff schedules of the importing country, such as the USITC HTS or the UK Trade Tariff, and reviewing the WCO Explanatory Notes is crucial for accurate determination.

How is the duty calculated for products under HS 521041?

A specific product, a printed cotton shirting fabric weighing 150 kilograms and declared at a customs value of $750 USD, would attract a US duty of $112.50. This is calculated using the USITC Harmonized Tariff Schedule's Most Favored Nation (MFN) duty rate of 15% ad valorem, applied to the declared value ($750 USD × 0.15 = $112.50). It is important to note that if the fabric were indeed of yarns of different colours and not printed, the duty rate could differ significantly, potentially being lower or higher depending on the specific HTS subheading.

Which trade agreements reduce duties for HS 521041?

Several free trade agreements may reduce the applicable duty rate for HS 521041, including the United States-Mexico-Canada Agreement (USMCA). Under USMCA, originating goods from Canada and Mexico can enter the United States duty-free. To claim this preference, a self-certified origin statement is typically required. Additionally, for goods originating in countries benefiting from the Generalized System of Preferences (GSP) program in various jurisdictions, preferential rates, often "Free," may apply, requiring documentation like a GSP Form A.

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