Cotton yarn (other than sewing thread) put up for retail sale

Heading 5207 covers cotton yarn (other than sewing thread) put up for retail sale. This includes cotton yarn in skeins, balls or on spools, intended for direct sale to consumers. It may be pure cotton or blended yarn, in various colours and thicknesses. Import of retail-packaged cotton yarn into the EU is subject to duty rates of 4% to 5%. Retail packaging must be properly labelled with fibre composition, weight and country of origin. Products must comply with REACH requirements regarding chemical substances. Heading 5207 is part of Chapter 52 (textiles, fabrics and clothing) of the Combined Nomenclature (CN) used in the European Union. This classification is based on the Harmonized System (HS) developed by the World Customs Organization (WCO), which is used in over 200 countries worldwide. The EU Combined Nomenclature extends the HS with additional 8-digit subheadings, while the TARIC system adds 10-digit codes for identifying specific trade measures. Each 4-digit heading such as 5207 is subdivided into 6-digit (HS), 8-digit (CN) and 10-digit (TARIC) subheadings that specify the type of goods for the purpose of applying the correct duty rates, trade measures and regulatory requirements. Correct determination of the 10-digit code is essential for establishing the amount of customs duties and taxes, as well as required permits and certificates. Classification of goods under heading 5207 must follow the General Rules for the Interpretation (GRI) of the Combined Nomenclature. Rule 1 states that classification is determined primarily by the terms of the headings and the relevant section or chapter notes. The Explanatory Notes to the Harmonized System and the Combined Nomenclature clarify the scope of each heading and are essential references for importers and customs brokers.

Import of retail-packaged cotton yarn into the EU is subject to duty rates of 4% to 5%. Products must comply with REACH requirements regarding chemical substances. Yarn put up for retail sale is classified under heading 5207, regardless of the percentage cotton content. Packaging must include information on fibre composition, length/weight and care instructions. Duty rates are 4%-5%, with potential preferences under trade agreements. Products must meet EU chemical safety (REACH) and textile labelling requirements. When importing goods under heading 5207 into the European Union, attention must be paid to applicable duty rates, which depend on the specific subheading (8- or 10-digit code) and the country of origin. MFN (Most Favoured Nation) duty rates apply to imports from countries with which the EU does not have preferential trade agreements. Current rates can be checked in the EU TARIC database on the European Commission website. Import of goods under heading 5207 may benefit from preferential duty rates under Free Trade Agreements (FTAs) concluded by the EU with third countries, the Generalised Scheme of Preferences (GSP) for developing countries, or autonomous tariff suspensions. Claiming preferences requires presentation of appropriate proof of origin (EUR.1 certificate, origin declaration, REX certificate or statement on origin under the registered exporter system). Goods under heading 5207 are subject to labelling and fibre composition controls. Required documentation includes: fibre composition labels (EU Regulation 1007/2011), OEKO-TEX certificates, REACH reports. In addition to customs duty, imports are subject to VAT at the rate applicable in the country of destination. The VAT taxable amount at import is the customs value plus duty and any countervailing or anti-dumping duties. The importer must file an electronic customs declaration in the national import system.

Heading 5207 covers cotton yarn (other than sewing thread) put up for retail sale. Cotton yarn classified by: sewing thread (5204), yarn ≥85% cotton uncarded (5205), yarn ≥85% cotton carded (5206), yarn <85% cotton (5207). Key: cotton content (≥85% vs <85%) and treatment (carded vs combed). Woven fabrics: 5208-5212. Synthetic fibre yarn: Chapter 54/55.