HS 540261 Other yarn, multiple (folded) or cabled
Quick Answer: Other yarn, multiple (folded) or cabled, imported under HS 540261 enters the UK at 0.00%, the EU at 4.00% ad valorem, and the US with rates varying from Free to 55% depending on the country of origin. This classification covers synthetic filament yarn that has been twisted together to form multiple strands or cabled. Importers should be aware of the significant duty rate disparities, particularly for goods entering the United States, which may necessitate careful sourcing and trade agreement considerations. According to CustomTariffs data, understanding these varied rates is crucial for accurate landed cost calculations and compliance.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5402610000 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5402610000 | 4.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5402610000 | 7.5% | 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 5402.61?
Imports of Other yarn, multiple (folded) or cabled 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 540261 cover?
This subheading covers "Other yarn, multiple (folded) or cabled," specifically those not already classified under preceding subheadings within Heading 5402. According to the World Customs Organization (WCO) Harmonized System Explanatory Notes and definitions found in official tariff schedules like the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC, this category includes yarns formed by twisting two or more single yarns together (folded) or by twisting folded yarns together (cabled). These yarns are typically made from synthetic or artificial staple fibers or filaments, excluding those specifically enumerated elsewhere in the heading.
What falls outside HS 540261?
The following products are excluded from HS 540261: single yarns (not folded or cabled), yarns of synthetic filaments (like nylon or polyester) that are specifically enumerated in other subheadings of Heading 5402, yarns of artificial filaments, and yarns of synthetic or artificial staple fibers that are put up for retail sale. For instance, single spun polyester yarn of 100% polyester staple fiber, even if intended for industrial use, would not fall here if it's not folded or cabled. Similarly, sewing thread, even if multiple, is typically classified under a different heading.
What are common classification mistakes for HS 540261?
A common error is misinterpreting the "multiple (folded) or cabled" requirement. Importers may incorrectly classify single yarns as folded or cabled, or vice versa. Another mistake involves overlooking the specific material composition or the way the yarn is presented. For example, yarns of artificial staple fibers are classified differently from those of synthetic staple fibers. Adherence to General Rule of Interpretation (GRI) 1, which states that classification shall be determined according to the terms of the headings and any relative section or chapter notes, is crucial to avoid these errors.
How should importers classify products under HS 540261?
The correct procedure for classifying products under HS 540261 involves a systematic approach. First, determine the material composition of the yarn (synthetic or artificial, filament or staple fiber). Second, ascertain if the yarn is single, folded (multiple), or cabled. Third, verify if the yarn is put up for retail sale; if so, it would likely be classified elsewhere. Finally, consult the relevant national tariff schedule, such as the USITC HTS or the EU TARIC, to confirm the specific subheading and any applicable notes or exclusions, ensuring the product meets all criteria for 5402.61.
How is the duty calculated for products under HS 540261?
A 100% polyester cabled yarn weighing 500 kilograms and declared at a customs value of $2,500 USD would attract a US duty of $125.00. This is calculated using the Most Favored Nation (MFN) duty rate of 5.0% ad valorem, applied to the declared customs value ($2,500 USD × 5.0% = $125.00). This calculation is based on the MFN rate published in the USITC Harmonized Tariff Schedule for HS code 5402.61.0000.
Which trade agreements reduce duties for HS 540261?
Several free trade agreements may reduce the applicable duty rate for HS 540261, 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. Additionally, the Generalized System of Preferences (GSP) may offer reduced or Free duty rates for goods from certain developing countries. To claim these preferences, importers typically require a self-certified origin statement for USMCA or a GSP Form A for GSP benefits, depending on the specific agreement and jurisdiction.
```Which HS Codes Are Related?
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FAQ
What are the typical import duty rates for HS code 540261, 'Other yarn, multiple (folded) or cabled'?
The Most Favored Nation (MFN) duty rate for HS code 540261 can vary. For example, under the US Harmonized Tariff Schedule (HTS), the general rate is 3.5% ad valorem. However, preferential rates are available for goods originating from countries with trade agreements with the importing nation. For instance, under the US HTS, 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 have a duty rate of Free (0.00%). Always consult the specific tariff schedule of the importing country for the most accurate and up-to-date rates.
How is the duty calculated for HS code 540261, and can you provide an example?
The duty for HS code 540261 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared value of the goods. For example, if the MFN duty rate is 3.5% and you import 1,000 kilograms of yarn valued at $5,000 USD, the duty would be calculated as follows: Duty = Value × Duty Rate = $5,000 USD × 3.5% = $175 USD. If the tariff also includes a specific duty (e.g., per kilogram), the calculation would be: Duty = (Value × Ad Valorem Rate) + (Quantity × Specific Rate). Always verify if both ad valorem and specific duties apply.
What are the key classification criteria to ensure goods are correctly classified under HS code 540261?
HS code 540261 covers 'Other yarn, multiple (folded) or cabled' of synthetic filaments. Key classification criteria include: 1. Material: The yarn must be made of synthetic filaments (e.g., polyester, nylon, acrylic). It excludes yarns of artificial filaments or staple fibers. 2. Construction: The yarn must be 'multiple (folded) or cabled,' meaning two or more single yarns are twisted together. This distinguishes it from single yarns (covered under other headings like 54024x). 3. Filament Type: It specifically refers to filament yarns, not staple fiber yarns. The WCO's Explanatory Notes and national tariff schedules provide detailed definitions and distinctions.
What documentation is typically required for importing goods classified under HS code 540261?
Standard import documentation for HS code 540261 generally includes: 1. Commercial Invoice: Detailing the value, quantity, description, and origin of the goods. 2. Packing List: Outlining the contents of each package. 3. Bill of Lading or Air Waybill: The transport document. 4. Certificate of Origin: Crucial for claiming preferential duty rates under trade agreements. 5. Import Declaration: Filed with customs authorities. Depending on the importing country and the specific nature of the yarn (e.g., dyes used), additional certifications related to safety, environmental standards, or chemical content might be required.
Which common trade agreements offer preferential duty rates for HS code 540261, and how can importers benefit?
Numerous trade agreements can provide preferential duty rates, often Free (0.00%), for HS code 540261. Examples include agreements like the USMCA (United States-Mexico-Canada Agreement), CAFTA-DR (Dominican Republic-Central America Free Trade Agreement), and bilateral agreements such as those between the US and countries like South Korea (KORUS FTA) or Chile (US-Chile FTA). To benefit, importers must ensure the goods meet the rules of origin stipulated in the relevant trade agreement and possess a valid Certificate of Origin issued by the exporter. This requires careful verification of the supply chain and documentation to prove the goods' origin.