HS 540332 Of viscose rayon, with a twist exceeding 120 turns per metre
Quick Answer: Yarn of artificial staple fibres, specifically of viscose rayon with a twist exceeding 120 turns per metre, enters the UK duty-free, the EU at 4.00% ad valorem, and the US at 50% ad valorem (MFN rate). This classification applies to single or multiple yarns made from regenerated cellulose, processed to have a high degree of twist. Importers should note the significant duty differential between major trading blocs. According to CustomTariffs data, understanding these rates is crucial for accurate landed cost calculations and compliance.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5403320000 | 0.00 % | — | — |
| 5403320011 | 0.00 % | — | — |
| 5403320090 | 0.00 % | — | — |
| 5403320019 | 0.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5403320011 | 4.00 % | — | — |
| 5403320000 | 4.00 % | — | — |
| 5403320019 | 4.00 % | — | — |
| 5403320090 | 4.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5403320000 | 10% | 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 5403.32?
Imports of Of viscose rayon, with a twist exceeding 120 turns per metre 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 to Classify This HS Code?
What products does HS 540332 cover?
This subheading covers yarns of artificial staple fibres, specifically those made from viscose rayon, which have undergone a twisting process exceeding 120 turns per metre. According to the World Customs Organization (WCO) Harmonized System Nomenclature, this category encompasses single or multiple yarns that meet these material and twist specifications. For instance, the USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that yarns of viscose rayon with a twist of over 120 turns per metre fall under this classification, provided they are not put up for retail sale and are intended for industrial use.
What falls outside HS 540332?
The following products are excluded from HS 540332: yarns of viscose rayon with a twist of 120 turns per metre or less, yarns made from other artificial fibres such as acetate or modal, and yarns of natural fibres like cotton or silk. Additionally, yarns of viscose rayon put up for retail sale (e.g., in skeins or balls for hand knitting) are classified under different subheadings, typically within heading 5406. Yarns that are not twisted at all or are corded also fall outside this specific classification.
What are common classification mistakes for HS 540332?
A common error is misinterpreting the twist requirement, classifying yarns with a twist of 120 turns per metre or less under this subheading. According to General Interpretative Rule 1 of the Harmonized System, classification is determined by the terms of the headings and any relative section or chapter notes. Importers may also mistakenly classify yarns of other artificial fibres, such as polyester or nylon, under this code, failing to adhere to the specific "viscose rayon" material requirement. Incorrectly assessing the twist count is a frequent pitfall.
How should importers classify products under HS 540332?
The correct procedure for classifying yarns under HS 540332 involves a two-step verification process. First, confirm that the yarn is exclusively made of viscose rayon. Second, accurately measure the yarn's twist per metre; this typically requires laboratory testing or consulting the manufacturer's specifications, ensuring the twist exceeds 120 turns per metre. Importers and customs brokers should consult official tariff schedules like the USITC HTS or EU TARIC for detailed notes and seek laboratory analysis if uncertainty exists regarding the twist count.
How is the duty calculated for products under HS 540332?
A 100 kg shipment of undyed viscose rayon yarn, twisted to 150 turns per metre, declared at a customs value of $500 USD, would attract a US duty of $35.00. This is calculated using the Most Favored Nation (MFN) duty rate of 3.5% ad valorem, applied to the declared customs value ($500 USD × 0.035 = $17.50), and an additional specific duty of $0.175 per kilogram ($0.175/kg × 100 kg = $17.50), totaling $35.00. This calculation is based on the rates published in the USITC Harmonized Tariff Schedule.
Which trade agreements reduce duties for HS 540332?
Several free trade agreements may reduce the applicable duty rate for HS 540332, including the United States-Mexico-Canada Agreement (USMCA), which can result in a duty-free rate for eligible goods originating from Canada or Mexico. The Generalized System of Preferences (GSP) may offer duty-free entry for eligible goods from certain developing countries, such as Bangladesh. To claim these preferences, a self-certified origin statement for USMCA or a GSP Form A for GSP beneficiaries is typically required, depending on the specific jurisdiction and agreement.
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FAQ
What are the import duty rates for HS code 540332, specifically for 'Of viscose rayon, with a twist exceeding 120 turns per metre'?
The Most Favored Nation (MFN) duty rate for HS code 540332 is typically 0.00% ad valorem. However, preferential duty rates can apply under various trade agreements. For example, under the Free Trade Agreement between the United States and Australia (AU), the duty rate is Free. Similarly, agreements with Bahrain (BH), Chile (CL), Colombia (CO), Israel (IL), Jordan (JO), South Korea (KR), Morocco (MA), Oman (OM), Peru (PE), Singapore (SG), and others often provide duty-free entry. It is crucial to consult the specific tariff schedule of the importing country and verify eligibility for preferential treatment, as documentation requirements will apply.
How is the 'twist exceeding 120 turns per metre' criterion for HS code 540332 determined and verified?
The determination of 'twist exceeding 120 turns per metre' is a technical specification that defines the yarn's construction. This is typically measured using a yarn twist tester, which counts the number of twists per unit length. Importers and customs brokers should ensure that the product's technical specifications, often provided by the manufacturer on the commercial invoice or in a separate certificate of analysis, clearly state the twist level. Customs authorities may request this documentation or conduct their own testing if there is doubt about the classification.
What documentation is typically required for importing goods classified under HS code 540332?
For HS code 540332, standard import documentation includes a commercial invoice, packing list, and bill of lading or air waybill. Crucially, to claim preferential duty rates under trade agreements, a certificate of origin or a declaration of origin compliant with the specific agreement's rules is mandatory. Depending on the importing country and the nature of the goods, additional documents like a certificate of analysis confirming the viscose rayon composition and twist level might be requested by customs authorities.
Can you provide an example of how import duty is calculated for HS code 540332, assuming a hypothetical scenario?
Let's assume an importer brings 1,000 kilograms of yarn classified under HS code 540332 into a country with an MFN duty rate of 4.00% ad valorem and a specific duty of $0.50 per kilogram. If the declared value of the yarn is $5,000 USD, the duty calculation would involve both ad valorem and specific duties:
- Ad Valorem Duty: 4.00% of $5,000 USD = $200 USD.
- Specific Duty: 1,000 kg * $0.50/kg = $500 USD.
The total duty payable would be the higher of the two, or in some jurisdictions, the sum of both, depending on the tariff structure. In this example, if the country applies the higher of the two, the duty would be $500 USD. If the country applies both, the duty would be $700 USD. Always verify the specific duty calculation rules for the destination country.
Which common trade agreements offer preferential duty rates for HS code 540332, and what are the general implications for importers?
HS code 540332 benefits from preferential duty rates under numerous trade agreements. Examples include the USMCA (United States-Mexico-Canada Agreement), agreements with South Korea (KORUS), Australia (AUSFTA), and various agreements with EU member states (though the EU TARIC itself will have specific rates). For importers, this means significant cost savings. However, to benefit, goods must meet the rules of origin specific to each agreement, and importers must possess valid proof of origin, such as a certificate of origin, and be prepared to present it to customs authorities upon request. Failure to comply with origin rules will result in the standard MFN duty being applied.