The tariff classification of alpaca/silk yarn from Peru; for preferential tariff treatment under the U.S.-Peru Trade Promotion Act.

N249380 January 31, 2014 CLA-2-63:OT:RR:NC:N3:351 CATEGORY: Classification TARIFF NO.: 5109.90.9000 Warren T. Wheelock President Berroco, Inc. 1 Tupperware Drive, Suite 4 North Smithfield, RI 02896 RE: The tariff classification of alpaca/silk yarn from Peru; for preferential tariff treatment under the U.S.-Peru Trade Promotion Act. Dear Mr. Wheelock: In your letter dated Jan. 13, 2014, you requested a ruling concerning the tariff classification and eligibility of certain imported alpaca/silk yarn for preferential tariff treatment under the United States-Peru Trade Promotion Agreement Implementation Act (Peru TPAIA). You describe the yarn as follows: 74% Suri Alpaca and 26% silk, which you call Andean Mist. (Suri Alpaca is a breed of the animal with longer hair, among other characteristics making it’s hair and the yarn made from it softer and finer, and thus more desirable and expensive.) Alpaca is considered fine animal hair for tariff classification purposes. Legal Note 1(b) to Chapter 51, Harmonized Tariff Schedule of the United States (HTSUS), noted. The yarn will be sold in 25-gram skeins. The yarn as imported meets the tariff definition of “put up for retail sale” found in Section XI, Note 4(b), HTSUS. The applicable subheading for the alpaca /silk yarn as described above will be 5109.90.9000, HTSUS, which provides for yarn of wool or fine animal hair, put up for retail sale:…Other:…Other:…Other. The general rate of duty will be 6% ad valorem. In your letter, you suggest that the correct classification is in subheading 5109.10.9000, HTSUS, which provides for yarn of wool or fine animal hair, put up for retail sale: Containing 85% or more by weight of wool or fine animal hair. However, the yarn contains less than 85% fine animal hair. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. You state that the yarn is manufactured in Peru. The alpaca is of Peru origin and silk fibers that are imported into Peru from China. The United States-Peru Trade Promotion Agreement was signed on April 12, 2006. The United States-Peru Trade Promotion Agreement Implementation Act (Pub. L. 110-138, 121 Stat. 1455 (19 U.S.C. 3805 note)), as amended by §1634 of the Pension Protection Act of 2006 (Pub. L. 109-280, 120 Stat. 1167), implemented the Agreement in General Note (GN) 32, HTSUS, which sets forth the criteria for determining whether a good is originating under the Peru TPAIA. GN 32(b) (19 U.S.C. §1202) states, in pertinent part, For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— the good is a good wholly obtained or produced entirely in the territory of Peru, the United States, or both; the good was produced entirely in the territory of Peru, the United States, or both, and— (A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or (B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or (iii) the good was produced entirely in the territory of Peru, the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note. For goods classified in heading 5109, General Note 32/51.2 requires: A change to heading 5106 through 5110 from any heading outside that group. The non-originating silk fibers are classified in Chapter 50, HTSUS and meet the terms of the tariff shift rule. Based on the facts provided, the yarn qualifies for Peru TPAIA preferential treatment because it meets the requirements of HTSUS General Note 32(b)(ii)(A). The merchandise will therefore be entitled to a Free rate of duty under the Peru TPAIA upon compliance with all applicable laws, regulations, and agreements. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Mitchel Bayer at (646) 733-3102. Sincerely, Gwenn Klein Kirschner Acting Director National Commodity Specialist Division