HS 540263 Of polypropylene
Quick Answer: Yarn of polypropylene, specifically other synthetic filament yarn not put up for retail sale, imported under HS 540263 enters the UK at 0.00%, the EU at 4.00% ad valorem, and the US at a Most Favored Nation (MFN) rate of 7.5%. This classification covers continuous filament yarn made from polypropylene, excluding those specifically prepared for retail sale. Importers should be aware of significant tariff differentials between major trading blocs. For instance, the US offers duty-free entry for certain trading partners, a crucial consideration for supply chain optimization. CustomTariffs aggregates this data, highlighting the importance of verifying specific preferential rates based on origin.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5402630000 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5402630000 | 4.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5402630000 | 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 5402.63?
Imports of Of polypropylene 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 540263 cover?
This subheading covers synthetic filament yarn, not put up for retail sale, of polypropylene, specifically "other" single, multiple or cabled yarns. According to the World Customs Organization's Harmonized System Nomenclature, this category encompasses a broad range of polypropylene yarns that do not fit into more specific subheadings within 5402. For instance, the US International Trade Commission (USITC) Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that this subheading is for single yarns of polypropylene, whether or not textured, with a linear density exceeding 67 decitex and a single yarn of which noueux filaments are less than 10 percent by weight of the total content.
What falls outside HS 540263?
The following products are excluded from HS 540263: yarns of other synthetic fibers such as polyester or nylon, as well as yarns of artificial fibers. Also excluded are yarns of polypropylene put up for retail sale, which would be classified under different headings. Furthermore, yarns with a linear density not exceeding 67 decitex, or those with a single yarn of which noueux filaments are less than 10 percent by weight of the total content, are classified elsewhere. For example, fine polypropylene yarns used in textiles for apparel would not fall under this subheading.
What are common classification mistakes for HS 540263?
A common error is misinterpreting the "other" designation within this subheading, leading to the incorrect classification of yarns that should be placed in more specific subheadings based on their construction or linear density. For example, failing to properly assess the linear density or the percentage of noueux filaments can result in misclassification. According to General Rule of Interpretation (GRI) 3(a) of the Harmonized System, the subheading providing the most specific description shall be preferred. Importers may also mistakenly classify yarns intended for retail sale under this heading, overlooking the specific exclusion for such goods.
How should importers classify products under HS 540263?
The correct procedure for classifying products under HS 540263 involves a detailed examination of the yarn's material composition, construction, and physical characteristics. Importers and customs brokers must first confirm the yarn is 100% polypropylene and not put up for retail sale. Next, they must verify its linear density exceeds 67 decitex and that it meets the criteria for "other" single, multiple, or cabled yarns as defined by the relevant tariff schedule, such as the USITC HTS or EU TARIC. Consulting the Explanatory Notes to the Harmonized System is also crucial for precise determination.
How is the duty calculated for products under HS 540263?
A shipment of 1,000 kilograms of industrial polypropylene twine, 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. The calculation is: 5.0% × $2,500 USD = $125.00. This rate is published in the USITC Harmonized Tariff Schedule (HTS) under subheading 5402.63.0000. For other jurisdictions, the specific duty rate and calculation method would vary.
Which trade agreements reduce duties for HS 540263?
Several free trade agreements may reduce the applicable duty rate for HS 540263, 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 eligible goods from certain developing countries. To claim preference under USMCA, a self-certified origin statement is typically required. For GSP, a GSP Form A is generally needed, depending on the beneficiary country and the importing country's regulations.
```Which HS Codes Are Related?
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FAQ
What are the typical import duty rates for HS code 540263, specifically for 'other synthetic filament yarn, of polypropylene'?
The Most Favored Nation (MFN) duty rate for HS code 540263 is typically 3.5% ad valorem. However, preferential duty rates are available for imports from countries with 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 (0.00%). It is crucial to verify the specific preferential rate applicable to your country of origin and ensure you have the necessary proof of origin documentation. Source: USITC Harmonized Tariff Schedule.
How is the import duty for HS code 540263 calculated, and can you provide an example?
The duty for HS code 540263 is generally calculated on an ad valorem basis, meaning it's a percentage of the declared value of the goods. For instance, if the MFN duty rate is 3.5% and you import 1,000 kilograms of polypropylene yarn valued at $2,000 USD, the duty calculation would be: Value of Goods = $2,000 USD. Duty Rate = 3.5%. Duty Amount = $2,000 USD * 0.035 = $70 USD. Always ensure your declared value is accurate and includes all assessable costs as per customs regulations.
What are the key classification criteria for goods falling under HS code 540263?
HS code 540263 specifically covers 'other synthetic filament yarn, of polypropylene.' The key classification criteria are: 1. Material: The yarn must be made of synthetic fibers, specifically polypropylene. 2. Form: It must be filament yarn, meaning it's composed of continuous filaments. 3. 'Other': This designation implies it is not specifically classified under preceding subheadings within 5402, which often relate to specific constructions or types of synthetic filament yarn (e.g., high tenacity yarn, textured yarn). The yarn should not be put up for retail sale unless it meets specific criteria for bulk packaging. Source: WCO Harmonized System Explanatory Notes.
What documentation is typically required when importing goods classified under HS code 540263?
When importing goods under HS code 540263, standard import documentation is required. This typically includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list; a bill of lading or air waybill for transport; and a certificate of origin, especially if claiming preferential duty rates. Depending on the importing country's regulations, additional certifications related to material composition or quality might be requested. Importers and customs brokers should consult the specific import requirements of the destination country.
Which common trade agreements offer preferential duty rates for HS code 540263, and how can importers leverage them?
Several trade agreements provide preferential duty rates, often leading to duty-free entry (0.00%) for HS code 540263. Notable examples include agreements between the United States and countries like Australia (AU), Bahrain (BH), Chile (CL), Colombia (CO), Israel (IL), Jordan (JO), South Korea (KR), Morocco (MA), Oman (OM), Peru (PE), and Singapore (SG). To leverage these agreements, importers must obtain a valid Certificate of Origin (COO) from the exporter, demonstrating that the goods meet the rules of origin stipulated in the respective trade agreement. This COO must be presented to customs at the time of import. Failure to provide proper documentation will result in the application of the standard MFN duty rate.