OT:RR:CTF:CPMMA H293170 AJK
TARIFF NO: 7117.90.90; 9601.90.40
Ms. Dionisia Melman
Customs Compliance and Logistics Manager
The Jewelry Group
1411 Broadway, 3rd Floor
New York, NY 10018
RE: Revocation of NY N285626; Modification of NY N123795 and NY N284708; Classification of Coral Beads for Jewelry and Jewelry with Abalone
Dear Ms. Melman:
This letter is reference to your New York Ruling Letters (NY) N284708, dated April 7, 2017, and NY N285626, dated May 1, 2017, concerning the tariff classification of jewelry with abalone. In NY N284708 and NY N285626, U.S. Customs and Broder Protection (CBP) classified the merchandise in heading 7116, Harmonized Tariff Schedule of the United States (HTSUS). We have reviewed the aforementioned rulings, and have determined that the classification of the subject merchandise in heading 7116, HTSUS, was incorrect.
We have also reviewed NY N123795, dated October 13, 2010, concerning the tariff classification of coral beads for jewelry, and have determined that the ruling was incorrect. For the reasons set forth below, we revoke one ruling letter and modify two ruling letters.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by section 623 of Title VI, notice proposing to revoke NY N285626 and to modify NY N123795 and NY N284708 was published on April 28, 2021, in Volume 55, Number 16, of the Customs Bulletin. No comments were received in response to this Notice.
FACTS:
The jewelry with abalone was described in NY N284708 as follows:
Style number 60468619-276 is a pair of earrings identified as the Lonna & Lilly “PE Square Stud.” Each earring consists of 1-8 by 12mm genuine [Abalone] sheet covered by an 8 by 12mm faceted, epoxy imitation gemstone, and 1 zinc casting plated in worn silver. Company provided information in the aggregate indicates that the weight and cost of the zinc castings exceed the cost of the abalone sheets and faceted, epoxy imitation gemstones.
The subject merchandise in NY N285626 was substantially similar to the product described above.
The coral beads for jewelry were described in NY N123795 as follows:
Sample 2, identified simply as style B, are several small coral beads, each having holes for stinging [sic], and that have been polished and dyed a red coral color. The coral beads have not been identified as either being of natural or simulant material. Although not specified, the coral beads have inserts for being strung, thereby making them appropriate for creating items of jewelry like necklaces & bracelets.
ISSUE:
Whether the coral beads for jewelry and jewelry with abalone are classified in heading 7116, HTSUS, as articles of precious or semi-precious stones, heading 7117, HTSUS, as imitation jewelry, or heading 9601, HTSUS, as worked coral.
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS provisions at issue are as follows:
7116: Articles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed):
7116.20: Of precious or semiprecious stones (natural, synthetic or reconstructed):
7116.20.05: Articles of jewelry: Valued not over $40 per piece
7116.20.40: Other: Of semiprecious stones (except rock crystal): Other
7117: Imitation jewelry:
7117.90: Other:
7117.90.90: Other: Valued over 20 cents per dozen pieces or parts: Other:
Other
9601: Worked ivory, bone, tortoise-shell, horn, antlers, coral, mother-of-pearl and other
animal carving material, and articles of these materials (including articles obtained by molding):
9601.90: Other:
9601.90.40: Coral, cut but not set, and cameos, suitable for use in jewelry
* * * * * *
Note 11 to Chapter 71, HTSUS, provides as follows:
For the purposes of heading 7117, the expression "imitation jewelry" means articles of jewelry within the meaning of paragraph (a) of note 9 above (but not including buttons or other articles of heading 9606, or dress combs, hair slides or the like, or hairpins, of heading 9615), 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.
* * * *
Notes to Chapter 96, HTSUS, provides, in pertinent:
This chapter does not cover:
…
(c) Imitation jewelry (heading 7117);
…
4. Articles of this Chapter, other than those of headings 96.01 to 96.06 or 96.15, remain
classified in the Chapter whether or not composed wholly or partly of precious metal or metal clad with precious metal, of natural or cultured pearls, or precious or semi-precious stones (natural, synthetic or reconstructed). However, headings 96.01 to 96.06 and 96.15 include articles in which natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed), precious metal or metal clad with precious metal constitute only minor constituents.
* * * * * *
The Harmonized Commodity Description and Coding System (HS) Explanatory Notes (ENs) constitute the official interpretation of the HS. While not legally binding or dispositive, the ENs provide a commentary on the scope of each heading of the HS at the international level, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
EN 71.13 provides, in pertinent part:
To fall in this heading these articles must contain precious metal or metal clad with precious metal (including base metal inlaid with precious metal) to an extent exceeding minor constituents; (thus a cigarette case of base metal with a simple monogram of gold or silver remains classified as an article of base metal). Subject to this condition the goods may also contain pearls (natural, cultured or imitation), precious or semi-precious stones (natural, synthetic or reconstructed), imitation stones, or parts of tortoise-shell, mother of pearl, ivory, amber (natural or agglomerated), jet or coral.
* * * *
EN 71.17 provides, in pertinent part, as follows:
For the purposes of this heading, the expression imitation jewellery, as defined in Note 11 to this Chapter, is restricted to small objects of personal adornment, such as those listed in paragraph (A) of the Explanatory Note to heading 71.13, e.g., rings, bracelets (other than wrist-watch bracelets), necklaces, ear-rings, cuff-links, etc., but not including buttons and other articles of heading 96.06, or dress combs, hair-slides or the like, and hair-pins of heading 96.15, provided they do not incorporate precious metal or metal clad with precious metal (except as plating or as minor constituents as defined in Note 2 (A) to this Chapter, e.g., monograms, ferrules and rims) nor natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed).
The heading also covers unfinished or incomplete articles of imitation jewellery (ear-rings, bracelets, necklaces, etc.)….
* * * *
EN 96.01 provides, in pertinent part, as follows:
For the purposes of this heading, the expression “worked” refers to materials which have undergone processes extending beyond the simple preparations permitted in the heading for the raw material in question (see the Explanatory Notes to headings 05.05 to 05.08). The heading therefore covers pieces of ivory, bone, tortoise-shell, horn, antlers, coral, mother-of-pearl, etc., in the form of sheets, plates, rods, etc., cut to shape (including square or rectangular) or polished or otherwise worked by grinding, drilling, milling, turning, etc. However, pieces which are identifiable as parts of articles are excluded from this heading if such parts are covered by another heading of the Nomenclature.
…
This heading also excludes:
…
(d) Articles of imitation jewellery (heading 71.17)….
* * * * * *
As a preliminary matter, we note that the EN’s Annex to Chapter 71, HTSUS, lists various minerals that are classified as precious or semi-precious stones. The Annex does not include organic materials, such as abalone or coral. Within the context of classification under HTSUS, therefore, abalone and coral do not constitute precious or semi-precious stones. Moreover, in regard to coral beads for jewelry, the fact that coral does not qualify as precious or semi-precious stones is further supported by EN 71.13, which identifies “precious or semi-precious stones” separately from “coral”.
Note 11 to Chapter 71 provides that “imitation jewelry” means articles of jewelry that does not incorporate precious or semi-precious stones. EN 71.17 further explains that heading 7117, which provides for imitation jewelry, includes small objects of personal adornment that do not contain precious or semi-precious stones. Accordingly, any jewelry that does not incorporate precious or semi-precious stones are, prima facie, classified in heading 7117, HTSUS. In the instant case, the jewelry with abalone is not classifiable in other headings as abalone is not specifically identified in HTSUS with the exception of headings 0307 and 1605, HTSUS, which are located in section I of live animals, and in section IV of prepared foodstuffs, respectively. Thus, under GRI 1, the instant jewelry with abalone in NY N284708 and NY N285626 are, prima facie, classified under heading 7117, HTSUS, as imitation jewelry. See e.g., NY N242292, dated June 7, 2013; NY L88978, dated December 2, 2005; NY K82175, dated January 12, 2004; NY K82176, dated January 6, 2004; and NY K82174, dated January 6, 2004.
Although coral is not a precious or semi-precious stones under HTSUS, the instant coral beads for jewelry in NY N123795 are not classifiable in heading 7117, HTSUS, as imitation jewelry. First, the coral beads do not constitute imitation jewelry because they are not in the form of jewelry at the time of importation. Second, generally, coral beads are considered as their own entity as identified in heading 9601, HTSUS, and thus, do not constitute parts of jewelry. Although EN 71.17 provides that heading 7117, HTSUS, includes “unfinished or incomplete articles of imitation jewellery”, the instant coral beads are not parts of imitation jewelry because they are explicitly identified in heading 9601, HTSUS, which provides for worked coral that are “cut to shape (including square or rectangular) or polished or otherwise worked by grinding, drilling, milling, turning, etc.” EN 96.01. While not dispositive of a heading level dispute, we note that subheading 9601.90.40, HTSUS, provides for “[c]oral, cut but not set, ... suitable for use in jewelry”. This supports our conclusion that the instant coral beads—which have been cut into small shapes of beads, polished, and drilled with small holes for stringing to create jewelry—are classified in subheading 9601.90.40, HTSUS, as worked coral for jewelry.
Pursuant to GRI 1, coral beads for jewelry are classified in heading 9601, HTSUS, as worked coral, and jewelry with abalone are classified in heading 7117, HTSUS, as imitation jewelry.
HOLDING:
By application of GRI 1, coral beads for jewelry are classified in heading 9601, HTSUS, specifically, subheading 9601.90.40, HTSUS, which provides for “[w]orked ivory, bone, tortoise-shell, horn, antlers, coral, mother-of-pearl and other animal carving material, and articles of these materials (including articles obtained by molding): [o]ther: [c]oral, cut but not set, and cameos, suitable for use in jewelry”. The 2021 column one, general rate of duty is 2.1 percent ad valorem.
In addition, jewelry with abalone are classified in heading 7117, HTSUS, specifically subheading 7117.90.90, HTSUS, which provides for “[i]mitation jewelry: [o]ther: [o]ther: [o]ther: [o]ther”. The 2021 column one, general rate of duty is 11 percent ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N284708, dated April 7, 2017, is hereby revoked. In addition, NY N285626, dated May 1, 2017, and NY N123795, dated October 13, 2010, are modified as noted above.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after publication in the CUSTOMS BULLETIN.
Sincerely,
Allyson Matttanah for Craig T. Clark, Director Commercial and Trade Facilitation Division
CC: Ms. Nicole Trimble
Import Supervisor
Agra Services Brokerage Co., Inc.
221-20 147th Avenue
Jamaica, NY 11413