Tariff classification of cotton lycra core spun yarn affirmed under sub-heading 5205.11, not as gimped yarn or residual heading.

Cotton lycra core spun yarn was analysed for tariff classification and treated as a single yarn under sub-heading 5205.11. The product was made with a lycra or spandex core covered by cotton fibres drawn from roving, and the analysis held that this did not amount to gimped yarn because gimped yarn requires yarns as both core and covering material. The amended tariff structure and HSN notes supported classification according to the predominant textile material, and cotton predominated by weight, placing the goods in Chapter 52. The reasoning also rejected classification under sub-heading 5205.90.

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Issues: Whether cotton lycra core spun yarn is classifiable under sub-heading 5205.11 as single yarn, or under heading 56.06 as gimped yarn, or under sub-heading 5205.90.

Analysis: The goods consisted of a lycra/spandex core sheathed by cotton fibres drawn from roving without the cotton being spun into yarn. On that description, the product emerging from the spinning frame was a single yarn and not gimped yarn, because gimped yarn requires yarns as both core and covering material and the core must not be twisted with the cover threads. The amended tariff structure and the HSN notes supported classification by the predominant textile material, and cotton predominating by weight led to classification in Chapter 52. The reasoning also rejected reliance on the pre-amendment position and held that the goods did not fit sub-heading 5205.90.

Conclusion: The correct classification was sub-heading 5205.11 and not heading 56.06 or sub-heading 5205.90. The assessee succeeded in one appeal and the remaining connected appeals were dismissed.

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