CLA-2 CO:R:C:M 954877 MMC
District Director
U.S. Customs Service
10 Causeway Street
Boston, MA 02222-1059
RE: Protest No. 0401-92-100306; Sapphire crackle; Chapter 71
Note 1(a)
Dear District Director:
The following is our decision regarding the request for
further review of Protest No. 0401-92-100306, which concerns the
classification of sapphire crackle under the Harmonized Tariff
Schedule of the United States (HTSUS). The entry was liquidated
on February 14, 1992, and a protest was timely filed on May 15,
1992.
FACTS:
Sapphire crackle consists of an assortment of rough pieces
of a opaque or clear glass-like material created from synthetic
sapphire boules. Boules are used in industrial applications,
such as instrument bearings, jewel bearings and substrate. Due
to varying factors during manufacture, the boules can crack.
Once cracked, the boule cannot be used for its intended function
in the production of industrial components. These cracked pieces
are known as crackle. Crackle has no industrial use and is
usually melted for reuse in the manufacturing of more boules.
Boules are created by adding pure aluminum oxide powder into
the top of a furnace heated to 2050 F. The powder is sifted into
a cylinder and falls through the furnace into an intense flame
where it melts and forms the pear shaped boules. The finished
boule ultimately will be split along its axis to produce
sapphires.
The sapphire crackle was classified in subheading
7104.20.00, HTSUS, as unworked synthetic or reconstructed
precious or semi-precious stone. Protestant argues that the
sapphire crackle is properly classifiable as other aluminum oxide
or other mineral substances.
The subheadings under consideration are as follows:
7104.20.00 [s]ynthetic or reconstructed precious or semi-
precious stones, whether or not worked or graded
but not strung, mounted or set; ungraded synthetic
or reconstructed precious or semi-precious stones;
temporarily strung for convenience of transport:
[o]ther, unworked or simply sawn or roughly
shaped.
2818.20.00 [a]rtifical corundum, whether or not chemically
defined; aluminum oxide; aluminum hydroxide:
[a]luminum oxide, other than artificial corundum.
2530.90.00 [m]ineral substances not elsewhere specified or
included: [o]ther.
ISSUE:
Whether the sapphire crackle is classifiable as synthetic or
reconstructed precious or semi-precious stone?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1, HTSUS, 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.
Chapter 71, HTSUS, provides in pertinent part for precious or
semiprecious stones.
Note 1, to Chapter 71, HTSUS, states:
[s]ubject to note 1(a) of section VI and except as
provided below, all articles consisting wholly or
partly:
(a) [o]f natural or cultured pearls or of precious
or semiprecious stones (natural, synthetic or
reconstructed)...
are to be classified in this chapter.
Sapphire crackle is wholly made from boules which are wholly
synthetic semiprecious stones. Therefore, even if the crackle is
a refined artificial corundum and even though it may be waste of
an artificial gemstone manufacturing process, it must be
classified in Chapter 71, HTSUS, because of the cited note.
For the foregoing reasons we find that the sapphire crackle
is classifiable as other unworked or simply sawn or roughly
shaped synthetic precious stones in subheading 7104.20.00, HTSUS.
HOLDING:
The protest should be denied in full. In accordance with
Section 3A (11)(b) of Customs Directive 0993550-065, dated August
4, 1993, Subject: Revised Protest Directive, this decision,
together with the Customs Form 19, should be mailed by your
office to the protestant no later than 60 days from the date of
this letter. Any reliquidation of the entry in accordance with
the decision must be accomplished prior to mailing of the
decision. Sixty days from the date of the decision, the Office
of Regulations and Rulings will take steps to make the decision
available to Customs personnel via the Customs Ruling Module in
ACS and the public via the Diskette Subscription Service, Lexis,
Freedom of Information Act and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings