HS 540823 Of yarns of different colours
Quick Answer: Woven fabrics of artificial filament yarn, specifically of different colors, enter the UK at 8.00%, the EU at 8.00%, and the US with a complex structure including a specific duty of 24.3¢/kg plus an ad valorem rate of 81% for certain types, or 12% ad valorem for others, with some entries being duty-free. This classification applies to textiles where the yarns themselves are colored prior to weaving, creating patterns or distinct color combinations. Importers should carefully verify the specific subheadings within Chapter 54 for the US, as the duty assessment can vary significantly based on fabric composition and construction. According to CustomTariffs data, understanding these jurisdictional differences is crucial for accurate duty calculation and compliance.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5408230000 | 8.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5408230000 | 8.00 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 5408232930 | — | — | ["m²","kg"] |
| 540823 | — | — | — |
| 5408231900 | Free | — | ["m²","kg"] |
| 5408232100 | 12% | Free (14 programs) | ["m²","kg"] |
| 54082329 | 12% | Free (14 programs) | — |
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 5408.23?
Imports of Of yarns of different colours 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 540823 cover?
This subheading covers fabrics of artificial staple fibres, specifically those woven from yarns of different colours. According to the World Customs Organization's Harmonized System Nomenclature, this category encompasses woven fabrics where the constituent yarns are dyed or printed before weaving, resulting in a pattern or design created by the juxtaposition of different colored yarns. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm this scope, focusing on the pre-dyed or pre-printed nature of the yarns used to create the fabric's coloration.
What falls outside HS 540823?
The following products are excluded from HS 540823: fabrics woven from yarns of a single colour, fabrics where the coloration is achieved by printing after weaving (which would fall under other headings), and fabrics made from artificial filament yarns rather than staple fibres. For instance, a woven fabric of rayon filament yarns dyed in multiple colours would not be classified here. Similarly, a plain white fabric of artificial staple fibres that is subsequently printed with a multi-coloured design would be classified elsewhere, typically under headings for printed fabrics.
What are common classification mistakes for HS 540823?
A common error is misinterpreting "yarns of different colours" to include fabrics that are piece-dyed or printed after weaving. General Rule of Interpretation (GRI) 3(b) for the classification of goods put up in sets, or GRI 1 which states classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes, are crucial. Importers may incorrectly classify a fabric that has a multi-coloured pattern achieved through post-weaving printing as if the yarns themselves were of different colours before weaving.
How should importers classify products under HS 540823?
The correct procedure for classifying products under HS 540823 involves a thorough examination of the fabric's construction and the origin of its coloration. Importers and customs brokers must verify that the woven fabric is composed of artificial staple fibres and that the multi-coloured effect is achieved by using yarns that were dyed or printed prior to the weaving process. Consulting the WCO HS Explanatory Notes and the specific tariff schedules of the importing country, such as the UK Trade Tariff, is essential for accurate determination.
How is the duty calculated for products under HS 540823?
A woven fabric of artificial staple fibres, such as a multi-coloured plaid shirting fabric weighing 150 kg and declared at a customs value of $1,500 USD, would attract a US duty of $150.00. This is calculated using the Most Favoured Nation (MFN) duty rate of 10% ad valorem, applied to the declared customs value ($1,500 USD × 10% = $150.00). This calculation is based on the rates published in the USITC Harmonized Tariff Schedule of the United States (HTSUS) for subheading 5408.23.00.
Which trade agreements reduce duties for HS 540823?
Several free trade agreements may reduce the applicable duty rate for HS 540823, including the United States-Mexico-Canada Agreement (USMCA) and the Generalized System of Preferences (GSP) for certain developing countries. Under USMCA, fabrics originating from Canada or Mexico may be eligible for a duty rate of Free, provided a valid origin declaration is submitted. For GSP beneficiaries, a Form A (Certificate of Origin) is typically required to claim preferential rates, which can also be Free or significantly reduced depending on the specific country and product.
```Which HS Codes Are Related?
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FAQ
What are the primary duty rates applicable to HS code 540823 (Woven fabrics of artificial staple fibres, of yarns of different colours)?
The duty rates for HS code 540823 vary significantly by importing country and trade agreement. For example, under the US Harmonized Tariff Schedule (HTS), the Most Favored Nation (MFN) rate is typically 8.00% ad valorem. However, preferential rates under trade agreements like the USMCA may offer reduced or free entry. In the European Union, the TARIC system may show a rate of 12% ad valorem, with potential for further reductions under specific trade pacts. It is crucial to consult the specific tariff schedule of the destination country for the most accurate and up-to-date rates. For instance, the UK Trade Tariff might list a different rate, potentially including specific additional duties or suspensions.
How is the duty calculated for HS 540823 if the duty is a combination of ad valorem and specific rates?
When a duty rate is a combination of ad valorem (based on value) and specific (based on quantity), the total duty is the sum of both components. For example, if a country imposes a duty of 24.3¢/kg plus 81% ad valorem on HS 540823, and you import 100 kg of fabric valued at $1,000 USD: The specific duty would be 100 kg * 24.3¢/kg = 2,430¢, which converts to $24.30 USD. The ad valorem duty would be 81% of $1,000 USD, which is $810.00 USD. The total duty would be $24.30 + $810.00 = $834.30 USD. Always ensure you are using the correct currency and units of measure as specified in the tariff.
What are the key classification criteria for HS code 540823?
HS code 540823 specifically covers woven fabrics of artificial staple fibres. The critical distinguishing factor for this code is that the fabric must be made from yarns of different colours. This means the yarns used in the warp and weft must not be of the same colour, or there must be a pattern created by yarns of different colours. Fabrics made from yarns of a single colour, or printed fabrics of artificial staple fibres, would fall under different HS codes. The 'artificial staple fibres' refer to fibres like rayon (viscose), modal, or lyocell, which are manufactured from regenerated cellulose.
What documentation is typically required for importing goods under HS code 540823?
Standard import documentation is generally required for HS code 540823. This includes a commercial invoice detailing the value, quantity, and description of the goods; a packing list; and a bill of lading or air waybill. Crucially, to substantiate the classification and ensure correct duty application, a Certificate of Origin may be necessary, especially if claiming preferential duty rates under a trade agreement. Depending on the importing country's regulations, a declaration of conformity or specific testing certificates related to fibre content or safety standards might also be requested. Importers and customs brokers should verify the specific requirements with the customs authorities of the destination country.
Which common trade agreements might offer preferential duty rates for HS code 540823?
The applicability of preferential duty rates for HS code 540823 depends heavily on the specific trade agreements between the exporting and importing countries. For imports into the United States, the United States-Mexico-Canada Agreement (USMCA) might provide preferential treatment for goods originating from Canada or Mexico. For imports into the European Union, agreements with countries like the UK (following Brexit), Switzerland, or various African, Caribbean, and Pacific (ACP) nations under the Economic Partnership Agreements (EPAs) could offer reduced or zero duties. Similarly, the UK has its own set of trade agreements. Importers must consult the relevant trade agreement text and ensure their goods meet the rules of origin criteria to qualify for these preferential rates.