CLA-2 CO:R:C:M 950769 NLP
Mr. Philip Freeman
Cain Customs Brokers Inc.
421 Texano
P.O. Box 150
Hildago, TX 78557
RE: Reconsideration of NYRL 850438; cubic zirconia; subheading
7117.19.50; note 10 to chapter 71; explanatory note (A) to
heading 7104; explanatory note (A) to heading 7116
Dear Mr. Freeman:
We have been asked to reconsider New York Ruling Letter
(NYRL) 850438 dated March 30, 1990, which dealt with the
classification of imitation jewelry articles under the Harmonized
Tariff Schedule of the United States (HTSUS).
FACTS:
NYRL 850438 dated March 30, 1990, dealt with the
classification of a variety of imitation jewelry imported from
Mexico. At issue in this reconsideration is item #4, a pair of
stud type earrings of base metal, gold-plated, with heart shaped
cubic zirconia synthetic stones. These earrings were held to be
classifiable in subheading 7117.19.50, HTSUS, which provides for
imitation jewelry, of base metal, whether or not plated with
precious metal, other, other.
ISSUE:
What is the classification of earrings of base metal, gold
plated, with heart shaped cubic zirconia synthetic stones.
LAW AND ANALYSIS:
The classification of goods under the HTSUS is governed by
the General Rules of Interpretation (GRI's), taken in order. GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.
Chapter 71, HTSUS, provides for imitation jewelry. Note 10
to Chapter 71, HTSUS, states the following:
For the purposes of heading 7117, the expression "imitation
jewelry" means articles of jewelry within the meaning of
paragraph (a) of note 8... not incorporating natural or
cultured pearls, precious or semiprecious stones (natural,
synthetic or reconstructed) nor (except as plating or as
minor constituents) precious metal or metal clad with
precious metal.
Therefore, jewelry that incorporates precious or semiprecious
synthetic stones is not considered imitation jewelry classifiable
in heading 7117, HTSUS.
Explanatory Note (A) to heading 7104 of the Harmonized
Commodity Description and Coding System (HCDCS), page 954,
provides that:
(A) synthetic precious and semi-precious stones. This
expression covers a range of chemically produced
stones which either:
* * * * *
- because of their colour, brilliance, resistance
to deterioration, and hardness are used by
jewellers, goldsmiths and silversmiths in place
of natural or semi-precious stones, even if
they do not have the same chemical composition
and crystal structure as the stones which they
resemble, e.g., yttrium aluminum garnet and
synthetic cubic zirconia, both of which are
used to imitate diamond. (Emphasis added)
Pursuant to this note, cubic zirconia stones are considered
synthetic precious gemstones. Inasmuch as the subject earrings
incorporate synthetic precious stones, they cannot be considered
imitation jewelry pursuant to note 10 to chapter 71, HTSUS.
Heading 7116 provides for, inter alia, articles of precious
or semi-precious stones (natural, synthetic or reconstructed).
Explanatory Note (A) to heading 7116 (HCDCS), page 963, provides
that this heading includes articles of personal adornment
containing precious or semi-precious synthetic stones that are
set or mounted on base metal, whether or not plated with precious
metals. The subject earrings are articles of personal adornment
that have synthetic precious stones mounted in gold plated base
metal. The earrings are, therefore, classified in heading 7116,
HTSUS. More specifically, the earrings are classified in
subheading 7116.20.10, HTSUS, which provides for articles of
precious or semiprecious stones (natural, synthetic or
reconstructed), articles of jewelry.
HOLDING:
The cubic zirconia heart earrings, Item #4, were incorrectly
classified in NYRL 850438. The correct classification for these
earrings is in subheading 7116.20.10, HTSUS. The rate of duty is
6.5 percent ad valorem.
Pursuant to Section 502(a)(3) of the Trade Act of 1975 (19
U.S.C. Section 2652(a)(3)) and General Note 3(c)(ii)(A), HTSUS,
Mexico has been designated a beneficiary developing country for
the purposes of the Generalized System of Preferences (GSP),
provided for in Title V of the Trade Act of 1974, as amended (19
U.S.C. Section 2461, et seq.). Articles classifiable under
subheading 7116.20.10, which are products of Mexico, are entitled
to duty-free treatment under the GSP upon compliance with all
applicable requirements.
NYRL 850438 is modified accordingly.
Sincerely,
John Durant, Director
Commercial Rulings Division