CLA-2 CO:R:C:M 954417 DWS

Mr. Ernest Ferrante
Kuehne & Nagel, Inc.
10 Exchange Place, 19th Floor
Jersey City, NJ 07302

RE: Agate Bearings; Weighing Machinery; Semiprecious Stones; Chapter 71, Note 3(ij); Section XVI, Note 1(f); 8423.90.00

Dear Mr. Ferrante:

This is in response to your letter of May 25, 1993, to the Regional Commissioner of Customs, New York, on behalf of Ohaus Scale Corporation, concerning the classification of agate bearings under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter has been referred to Headquarters for a reply.

FACTS:

The merchandise consists of bearings composed of the semiprecious stone agate. The bearings are used in mechanical reloading scales and triple beam scales.

The subheadings under consideration are as follows:

8524.90.00: [w]eighing machine weights of all kinds; parts of weighing machinery.

The general, column one rate of duty is 5.5 percent ad valorem.

7116.20.20: [a]rticles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed: [o]f precious or semiprecious stones (natural, synthetic or reconstructed): [o]ther: [o]f semiprecious stones (except rock crystal).

The general, column one rate of duty is 21 percent ad valorem.

ISSUE:

Whether the agate bearings are classifiable under subheading 8524.90.00, HTSUS, as parts of weighing machinery, or under subheading 7116.20.20, HTSUS, as other articles of semiprecious stones?

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 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

In part, chapter 71, note 3(ij), HTSUS, states that:

[t]his chapter does not cover:

(ij) . . . machinery, mechanical appliances or electrical goods, or parts thereof, of section XVI. However, articles and parts thereof, wholly of precious or semiprecious stones (natural, synthetic or reconstructed) remain classified in this chapter, except unmounted worked sapphires and diamonds for styli (heading 8522).

Section XVI, note 1(f), HTSUS, states that:

[t]his section does not cover:

(f) Precious or semiprecious stones (natural, synthetic or reconstructed) of headings 7102 or 7104, or articles wholly of such stones of heading 7116, except unmounted worked sapphires and diamonds for styli (heading 8522).

Under chapter 71, note 3(ij), HTSUS, the agate bearings, even though parts of weighing machinery of chapter 84, HTSUS, are to remain in chapter 71, HTSUS, because they are wholly of semiprecious stones. Furthermore, section XVI, note 1(f), HTSUS, excludes articles wholly of semiprecious stones.

Therefore, it is our position that the agate bearings are classifiable under subheading 7116.20.20, HTSUS, as other articles of semiprecious stones.

HOLDING:

The agate bearings are classifiable under subheading 7116.20.20, HTSUS, as other articles of semiprecious stones.

Sincerely,

John Durant, Director