Artificial filament yarn (other than sewing thread), not put up for retail sale, including artificial monofilament of less than 67 decitex

Heading 5403 covers yarn of artificial filaments (other than sewing thread), not put up for retail sale. This primarily includes viscose, acetate, modal and cuprammonium (cupro) filament yarn. It also covers artificial monofilament of less than 67 decitex. Import of artificial filament yarn into the EU is subject to duty rates of 4% to 5%. Artificial yarn differs from synthetic yarn in that it is manufactured from natural raw materials (cellulose). Fibre composition labelling and REACH compliance are required. Heading 5403 is part of Chapter 54 (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 5403 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 5403 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 artificial filament yarn into the EU is subject to duty rates of 4% to 5%. Fibre composition labelling and REACH compliance are required. The distinction between artificial filament (5403) and synthetic filament (5402) is crucial for classification. Artificial fibres (viscose, modal, acetate) are produced from cellulose, while synthetic from petrochemicals. Duty rates are 4%-5%, with potential preferences under EU trade agreements. Labelling specifying the type of artificial fibre (viscose, acetate, modal etc.) is required. When importing goods under heading 5403 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 5403 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 5403 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 5403 covers artificial filament yarn (viscose, modal, Lyocell, cellulose acetate). Key distinction from 5402: artificial fibres (from cellulose), not synthetic. HT viscose yarn has separate subheadings. Common mistake: Lyocell yarn classified as synthetic (5402) - it is artificial. Decisive: polymer origin (cellulose vs chemical synthesis).