With all the changes for exporting to America we want to update you with what we have been told.
All our yarns except for types 59115 and 59116 are spun in Peru and are classed as Peruvian origin. 59115 and 59116 are from Taiwan.
We have been seeking guidance from FedEx Trade as to if hand dyeing is classed as a substantial transformation and thus a change in origin. They have advised that this is not the case and hand dyed yarn should still be declared as the origin that the yarn was spun in. This ruling was challenged by a Turkish mill who dyed yarn that had been spun in Italy and the ruling by USA customs was that it remained as Italian origin. I know that some of our Canadian customers are being told the same thing.
Duty charged on Peruvian yarn is 10%. If it was declared as European Origin, it would be 15% so if the couriers do the declarations correctly it should mean you pay less duty when exporting to USA. We have done 2 trails this week DDP with FedEx and are awaiting the invoice to see what they are charging.
We hope that this is if help, and if we receive any updates from FedEx, we will of course provide an update.
Andy, Doug and Jeni