WOOL, FINE OR COARSE ANIMAL HAIR; HORSEHAIR YARN AND WOVEN FABRIC

Chapter 51 of the EU Customs Tariff covers wool, fine and coarse animal hair, and yarn and woven fabrics of horsehair. Classified here are textile raw materials of animal origin, ranging from unprocessed (raw) wool, through carded and combed wool, to finished woollen yarns and fabrics. Sheep's wool is the most important raw material in this chapter and includes both shorn wool and wool from dead or slaughtered sheep. Fine animal hair comes mainly from cashmere goats, Angora goats, alpacas, vicunas and camels, while coarse animal hair includes hair from common goats and other animals not separately specified. Horsehair, both raw and processed into yarn or fabric, constitutes a separate subcategory. This chapter is essential for importers of textile raw materials, manufacturers of woollen fabrics and the apparel sector processing wool. CN codes in Chapter 51 begin with 5101 (wool, not carded or combed) and end with 5113 (woven fabrics of coarse animal hair or of horsehair). Correct classification requires determining the type of fibre, the degree of processing and the linear mass of the yarn.

Customs duty rates on goods in Chapter 51 vary depending on the degree of processing of the raw material. Raw and uncarded wool (heading 5101) is generally subject to a zero duty rate, facilitating the import of raw materials for processing in the EU. Carded and combed wool (headings 5105) is subject to rates from 2% to 5%. Woollen yarns (headings 5106-5110) carry rates from 3.8% to 5%, depending on the type of yarn and its intended use. Woollen fabrics (headings 5111-5113) are subject to customs duty rates from 8% to 12%. Importers should take into account the additional 23% VAT levied on the customs value plus the duty.

When classifying goods in Chapter 51, the key factor is the correct distinction between wool and fine and coarse animal hair, as this affects the CN code assignment and the duty rate. The degree of fibre processing must be determined: raw, carded, combed, spun or woven. The linear mass of the yarn determines the classification to a specific subheading. Blends of wool with other fibres are classified according to the dominant component by weight. It is worth noting that finished apparel of wool does not belong to Chapter 51 but to Chapters 61 or 62, depending on the method of manufacture.