CLA-2 CO:R:C:M 950057 KCC

Ms. Patti Van De Wark
Monday's Wholesale
175 W. Julian Street
San Jose, California 95110

RE: Carved Serpentine Stone; GRI 1; semi-precious stone; jewelry grade; General EN 3, Section XIV; EN Annex, Section XIV; EN 71.16; 6815.99.40; EN 68.15; Note 1, Chapter 68, Section XIII

Dear Ms. Van De Wark:

This is in response to your letter dated July 9, 1991, regarding the tariff classification of carved serpentine stone under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Your letter was forwarded to this office for a reply.

FACTS:

The merchandise under consideration are several pieces of carved serpentine stone. You state that the serpentine stone is not jewelry grade. Additionally, you state that serpentine stone for jewelry is of an opaque and translucent character, whereas serpentine stone of a milky character is only suitable for carvings.

Since the serpentine is not "jewelry grade", you contend that the stone carvings classification as articles of semi- precious stone under subheading 7116.20.20, HTSUSA, is incorrect. You conclude that the stone serpentine carvings are classifiable under subheading 6815.99.40, which provides for "Articles of stone or of other mineral substances (including articles of peat), not elsewhere specified or included."

ISSUE:

What is the proper tariff classification of carved serpentine stone under the HTSUSA?

LAW AND ANALYSIS:

The classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUSA, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes...." The competing headings in this case are headings 6815 and 7116, HTSUSA. The headings describe:

6815 Articles of stone or of other mineral substances (including articles of peat), not elsewhere specified or included...

6815.99.40 Other articles...Other... Other

* * * * * * * * * * * *

7116 Articles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed)...

7116.20.20 Of precious or semiprecious stones (natural, synthetic or reconstructed)...Other...Of semiprecious stones (except rock crystal)

General Explanatory Note (EN) 3 to Section XIV of the Harmonized Commodity Description and Coding System (HCDCS) states that Chapter 71 includes "[i]n general, articles made wholly or partly of natural or cultured pearls, diamonds or other precious or semi-precious stones (natural, synthetic or reconstructed), precious metals or metal clad with precious metal (headings 71.13 to 71.16)." HCDCS, Vol. 3, p. 949. EN Annex to Section XIV lists "serpentine" as a precious or semi-precious stone. HCDCS, Vol. 3, p. 968. EN 71.16 states that "[t]his heading covers all articles (other than those excluded by Notes 2(b) and 3 to this Chapter), wholly of natural or cultured pearls, precious or semi- precious stones, or consisting partly of natural or cultured pearls or precious or semi-precious stones...." En 71.16 continues by stating that heading 7116 covers crosses and rings (frequently in agate), bracelets (other than wrist-watch bracelets), goblets and cups (often in garnet); statuettes and ornamental articles (e.g., of jade)...." HCDCS, Vol. 3, p. 963, 964.

Heading 7116, HTSUSA, covers all articles of precious or semi-precious stones (emphasis added). This heading does not distinguish between the grade of stone but includes all types of precious or semi-precious stone. The serpentine carvings are of the kind of articles contemplated in subheading 7116.20.20, HTSUSA, for they are statuettes and ornamental articles made from semi-precious stone. Therefore, the serpentine carvings are properly classified under subheading 7116.20.20, HTSUSA, as "Articles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed)...Of precious or semiprecious stones (natural, synthetic or reconstructed)... Other...Of semiprecious stones (except rock crystal)."

Subheading 6815.99.40, HTSUSA, provides for "Articles of stone or of other mineral substances (including articles of peat), not elsewhere specified or included...Other articles...Other...Other." You argue that the serpentine carvings are classifiable within this subheading. EN 68.15 states that "this heading covers articles of stone or of other mineral substances, not covered by the earlier headings of this Chapter and not included elsewhere in the Nomenclature...." HCDCS EN 68.15, Vol. 3, p. 909. The serpentine carvings do not satisfy the terms of this subheading as they are more specifically included in subheading 7116.20.20, HTSUSA. Additionally, Note 1, Chapter 68, Section XIII, HTSUSA, states that Chapter 68 "does not cover Articles of Chapter 71." Accordingly, the serpentine carvings are not properly classifiable within this subheading.

HOLDING:

The serpentine carvings are properly classified under subheading 7116.20.20, HTSUSA, as "Articles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed)...Of precious or semiprecious stones (natural, synthetic or reconstructed)... Other...Of semiprecious stones (except rock crystal)."

Sincerely,

John Durant, Director
Commercial Rulings Division