HS Code:
Non-originating cotton or man-made fiber spun yarn goods, as provided for in note 11(b)(iii), refer to yarns that do not meet the rules of origin criteria under specific trade agreements but are classified under the Harmonized System (HS) for tariff purposes. These goods are critical in the textile industry, used in the production of fabrics and garments. They include spun yarns made from cotton or synthetic fibers like polyester, nylon, or acrylic, which are traded globally under various trade agreements and tariff schedules. The classification often falls under HS codes such as 5205 (cotton yarn) or 5509 (yarn of synthetic staple fibers), depending on the specific product. Trade in these goods is influenced by regional trade agreements, tariff barriers, and the availability of raw materials.
Total Trade Volume
Approximately $15.3 billion USD
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO) Statistics
$4.8 billion USD
31.4% of total trade of total trade
Increasing
$3.2 billion USD
20.9% of total trade of total trade
Increasing
$1.9 billion USD
12.4% of total trade of total trade
Increasing
$1.5 billion USD
9.8% of total trade of total trade
Stable
$1.2 billion USD
7.8% of total trade of total trade
Stable
Average Rate
6.5% ad valorem
Highest Rate
12% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like USMCA or EU trade deals)
Shift towards sustainable production
Increasing demand for eco-friendly and organic cotton yarns, pushing exporters to adopt sustainable practices despite higher production costs.
2021-2023
Rise of man-made fiber yarns
Growing preference for synthetic fibers due to durability and cost-effectiveness, impacting traditional cotton yarn markets.
2020-2022
Regional trade agreement benefits
Countries within agreements like RCEP (Regional Comprehensive Economic Partnership) are seeing reduced tariffs, boosting trade volumes in Asia-Pacific.
2022-2023
The European Union introduced temporary quotas on non-originating cotton and man-made fiber yarns from certain Asian countries to protect domestic producers amid concerns of market flooding.
June 2023
Exporters like India and Vietnam face reduced market access, potentially shifting trade to other regions like Africa or Latin America.
The United States-Mexico-Canada Agreement (USMCA) updated rules of origin for textiles, requiring higher regional content for duty-free access, affecting non-originating yarn imports.
January 2023
Non-originating yarn exporters face higher tariffs in North American markets, encouraging regional production.
China launched a policy to promote sustainable textile production, offering subsidies for eco-friendly yarn manufacturers while imposing stricter environmental regulations.
March 2023
Increased production costs for Chinese exporters in the short term, but potential for long-term market advantage in sustainability-focused regions like the EU.