CARPETS AND OTHER TEXTILE FLOOR COVERINGS

Chapter 57 of the European Union Customs Tariff covers carpets and other textile floor coverings. Both luxury hand-knotted carpets and mass-produced carpet flooring are classified here. CN codes begin at heading 5701 (knotted carpets) and end at heading 5705 (other carpets and floor coverings). Hand-knotted carpets (5701), including Oriental Persian, Turkish and Afghan rugs, constitute a category of significant commercial and cultural importance. Woven carpets (5702) include kilims and other flat-woven coverings. Tufted carpets (5703) dominate the carpet flooring market and are mainly machine-produced. Needlefelt and felt carpets (5704) are frequently used as floor coverings in public buildings. Other carpets (5705) include braided, knitted and other carpets not elsewhere classified. The classification of carpets depends on the manufacturing technique (knotting, weaving, tufting, needling), the material (wool, silk, synthetic fibres, cotton) and whether the product is ready for use or constitutes material sold by the metre. The main exporters of carpets to the EU are Turkey, India, China, Iran, Pakistan and Belgium.

Duty rates on carpets vary depending on the manufacturing technique and material. Hand-knotted carpets (5701) are subject to rates of 3.2% to 8%. Woven carpets (5702) carry rates of 5% to 8%. Tufted carpets (5703) are subject to rates of 5.6% to 8%. Needlefelt and felt carpets (5704) carry rates of 5.8% to 8%. Hand-knotted Oriental carpets may benefit from preferential rates under EU trade agreements with producing countries. In addition to customs duty, importers must account for 23% VAT.

The key criterion for classifying carpets is the manufacturing technique: knotting, weaving, tufting, needling or another method. The pile material (wool, silk, synthetic, cotton) and the backing material must be identified. Carpets made of mixed materials are classified according to the material predominating by weight in the pile. It is important to distinguish between finished carpets and carpet material sold by the metre. Floor coverings that are not textile (e.g. made of PVC) do not fall under Chapter 57.