HS 540120 Of artificial filaments
Quick Answer: Yarn of artificial filaments imported under HS 540120 enters the UK at 4.00%, the EU at 4.00% or 5.00%, and the US at rates ranging from Free to 55% depending on the country of origin. This classification specifically covers sewing thread made from artificial filaments, such as those derived from regenerated cellulose (like rayon) or synthetic materials (like polyester or nylon). Importers should be aware of the varying Most Favored Nation (MFN) rates in the US, which can significantly impact landed costs. According to CustomTariffs data, understanding these jurisdictional differences is crucial for accurate duty assessment and trade planning.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5401200000 | — | — | — |
| 5401201000 | 4.00 % | — | — |
| 5401209000 | 4.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5401200000 | — | — | — |
| 5401201000 | 4.00 % | — | — |
| 5401209000 | 5.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5401200000 | 11.4% | Free (14 programs) | ["kg"] |
Special rates available under trade agreements including USMCA, KORUS, GSP.
Duty rates sourced from the USITC (US International Trade Commission) Harmonized Tariff Schedule (HTS) (accessed 2/22/2026), EU TARIC – DG TAXUD (Directorate-General for Taxation and Customs Union) (accessed 2/22/2026), and UK Trade Tariff – HMRC (His Majesty's Revenue and Customs) (accessed 2/22/2026).
Data compiled and presented by HSRates.
Which Trade Agreements Reduce Duties for HS 5401.20?
Imports of Of artificial filaments may qualify for reduced or zero duty rates under free trade agreements and preferential programs. The overview below shows available preferential arrangements by jurisdiction, compiled by HSRates from official tariff and trade agreement data.
United States (HTSUS)
Free for USMCA, KORUS, and 12 other programs
European Union (TARIC)
Preferential rate data not yet available.
United Kingdom
Preferential rate data not yet available.
Preferential rates require proof of origin and may be subject to quotas or conditions. Always verify eligibility with a licensed customs broker.
Data compiled by HSRates.
Which Preferential Rates Apply to Your Origin Country?
Select an origin country to see if preferential rates apply.
Preferential rates based on available trade agreements. Actual rates may vary.
How Has Trade Volume Developed?
Trade Volume 2023
How to Classify This HS Code?
What products does HS 540120 cover?
This subheading covers sewing thread made from artificial filaments, as defined by the World Customs Organization (WCO) Harmonized System (HS) Nomenclature. This includes threads spun from synthetic fibers like polyester, nylon, or rayon, which are manufactured through chemical processes. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that this category encompasses threads of man-made filaments, whether or not put up for retail sale, provided they are intended for sewing. For example, polyester sewing thread of 100% synthetic filaments falls here.
What falls outside HS 540120?
The following products are excluded from HS 540120: sewing thread made from natural fibers (e.g., cotton, silk, wool), sewing thread made from artificial staple fibers (which are classified under HS 5402), and sewing thread made from metallic yarn or rubber. Additionally, yarns not specifically intended for sewing purposes, even if made from artificial filaments, would be classified under other headings within Chapter 54. For instance, industrial yarn for tire cord would be classified elsewhere.
What are common classification mistakes for HS 540120?
A common error is misinterpreting "artificial filaments" versus "artificial staple fibers." HS 540120 specifically refers to continuous filaments extruded from synthetic polymers. If the thread is made from short, cut fibers of artificial origin, it would likely fall under HS 5402. Another mistake is confusing sewing thread with other types of yarn; General Rule of Interpretation (GRI) 1 emphasizes that classification is determined by the terms of the headings and any relative section or chapter notes, which clearly distinguish sewing thread.
How should importers classify products under HS 540120?
The correct procedure for classifying sewing thread under HS 540120 involves first identifying the material composition. If the thread is made from continuous artificial filaments (e.g., polyester, nylon), and it is intended for sewing, then HS 540120 is the appropriate subheading. Importers and customs brokers must consult the specific tariff schedule of the importing country, such as the USITC HTS or the EU TARIC, to confirm the exact wording and any specific notes or exclusions that might apply to their product.
How is the duty calculated for products under HS 540120?
A spool of 100% polyester sewing thread weighing 50 grams and declared at a customs value of $10.00 USD would attract a US duty of $0.35. This is calculated using the Most Favored Nation (MFN) duty rate of 3.5% ad valorem, applied to the declared value ($10.00 × 0.035 = $0.35). This calculation is based on the MFN rate published in the USITC Harmonized Tariff Schedule for subheading 5401.20.0000.
Which trade agreements reduce duties for HS 540120?
Several free trade agreements may reduce the applicable duty rate for HS 540120, including the United States-Mexico-Canada Agreement (USMCA), which can result in a duty rate of Free for qualifying goods originating from Canada or Mexico. The EU's Generalised Scheme of Preferences (GSP) may also offer preferential rates, often Free, for goods from certain developing countries. To claim these preferences, a valid origin declaration or certificate, such as a self-certified origin statement for USMCA or a EUR.1 movement certificate for certain EU preferences, is typically required.
```Which HS Codes Are Related?
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FAQ
What are the import duty rates for HS code 5401.20, specifically for 'Of artificial filaments'?
The Most Favored Nation (MFN) duty rate for HS code 5401.20 is typically 4.00% ad valorem. However, preferential duty rates are available for goods originating from countries with trade agreements with the importing country. For example, under certain agreements, goods 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 receive a Free (0%) duty rate. It is crucial to consult the specific tariff schedule of the importing country, such as the USITC Harmonized Tariff Schedule, the EU TARIC database, or the UK Trade Tariff, for the most accurate and up-to-date rates applicable to your specific origin country.
How is the import duty for HS 5401.20 calculated, and can you provide an example for 'Of artificial filaments'?
The duty for HS code 5401.20 is generally calculated on an ad valorem basis, meaning it is a percentage of the declared customs value of the goods. For instance, if the MFN duty rate is 4.00% and you are importing artificial filament thread valued at $10,000 USD, the duty would be calculated as follows: $10,000 (Value) × 4.00% (Duty Rate) = $400 USD (Duty Amount). Always ensure your customs value is correctly declared according to the valuation rules of the importing country.
What specific criteria define 'artificial filaments' under HS code 5401.20, and what common mistakes should importers avoid?
Under HS code 5401.20, 'artificial filaments' refer to continuous filaments produced by artificial processes, typically from man-made polymers like rayon (viscose), cellulose acetate, or synthetic polymers such as polyester, nylon, or polypropylene. These filaments are often spun into yarn. A common mistake is misclassifying these as 'natural filaments' (Chapter 50) or 'synthetic staple fibers' (Chapter 55) if they are cut into short lengths. Importers must ensure the product is indeed a continuous filament and not a staple fiber or a natural fiber to ensure correct classification.
What documentation is typically required for importing goods classified under HS 5401.20, 'Of artificial filaments'?
Standard import documentation for HS code 5401.20 typically includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list; a bill of lading or air waybill; and a certificate of origin if preferential duty rates are claimed. Depending on the importing country and the specific product, additional documentation such as a manufacturer's declaration or specific quality certifications might be required to verify the nature of the artificial filaments and compliance with any import regulations.
Which major trade agreements commonly offer preferential duty rates for HS code 5401.20, and how can importers verify eligibility?
Several trade agreements can provide preferential duty rates for HS code 5401.20. Examples include the United States-Mexico-Canada Agreement (USMCA), agreements with countries like South Korea (KORUS FTA), and various Free Trade Agreements (FTAs) the European Union has with third countries. To verify eligibility, importers must obtain a valid Certificate of Origin from the exporter, which certifies that the goods meet the rules of origin stipulated in the specific trade agreement. Importers and customs brokers should consult the official customs websites of the importing country (e.g., USITC, EU TARIC, UK Trade Tariff) and the text of the relevant trade agreement for precise rules of origin and documentation requirements.