HS 540331 Other yarn, single

The Most Favored Nation (MFN) duty rate for HS code 540331 is typically 4.00% ad valorem. However, preferential duty rates can be significantly lower or even free for goods originating from countries with which the importing country has a trade agreement. For example, under various trade agreements (e.g., with Australia (AU), Bahrain (BH), Chile (CL), Colombia (CO), Israel (IL), Jordan (JO), South Korea (KR), Morocco (MA), Oman (OM), Peru (PE), Singapore (SG)), the duty rate may be Free. It is crucial to consult the specific tariff schedule of the importing country and verify the country of origin to determine the applicable duty rate. Sources like the USITC Tariff Schedule, EU TARIC, or UK Trade Tariff provide detailed rate information.

HS code 540331 falls under Chapter 54, which covers 'Man-made filaments; man-made textile materials'. Specifically, 5403 pertains to 'Artificial filament yarn (other than continuously spun yarn), not put up for retail sale'. The subheading 540331 covers 'Other' single yarn of artificial filament. This means the yarn must be composed of artificial filaments (e.g., rayon, viscose, modal, lyocell, cuprammonium rayon) and not be a continuous filament yarn (which would be classified elsewhere). It must also be 'single' yarn, meaning it's not twisted or plied from multiple single yarns. The yarn is not intended for retail sale, typically implying it's for industrial or manufacturing use. Verification with the WCO Explanatory Notes or national tariff interpretations is recommended for precise classification.

The import duty for HS code 540331 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared customs value of the goods. For instance, if the MFN duty rate is 4.00% and you import 1,000 kilograms of yarn valued at $5,000 USD, the duty calculation would be: Duty = 4.00% of $5,000 USD = 0.04 × $5,000 = $200 USD. If the tariff also includes specific duties (e.g., per kilogram), the calculation would be a combination of ad valorem and specific duties, and the higher of the two or a combination might apply depending on the specific tariff. Always confirm the exact duty calculation method with the importing country's customs authority.

When importing goods under HS code 540331, standard import documentation is generally required. This includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list specifying the contents of each package; and a bill of lading or air waybill as the transport document. Crucially, to claim preferential duty rates under trade agreements, a Certificate of Origin (or equivalent declaration) is mandatory, demonstrating that the yarn originates from a country party to the agreement. Importers should also be prepared to provide technical specifications or material composition data if requested by customs to verify the classification. Consulting the importing country's customs agency website for their specific documentation checklist is advisable.

Several trade agreements can significantly reduce or eliminate duties for HS code 540331. For imports into the United States, agreements like the USMCA (United States-Mexico-Canada Agreement) may offer preferential rates if the yarn meets rules of origin. For imports into the European Union, agreements with countries such as South Korea, Singapore, or Canada could provide reduced duties. The UK benefits from its own set of trade agreements post-Brexit. Countries listed with 'Free' rates in the sample duty rates (AU, BH, CL, CO, IL, JO, KR, MA, OM, P, PA, PE, S, SG) indicate active trade agreements. Importers must verify the specific terms and rules of origin for any applicable trade agreement to ensure eligibility for preferential treatment.