CLA-2-71:S:N3G:344 859689
Mr. Kirk P. Makepeace
New World Gemstone
557-194th Street
South Surrey, B.C.
Canada V36 5J9
RE: The tariff classification of Nephrite Jade blocks from
Canada.
Dear Mr. Makepeace:
In your letter of January 15, 1991, you asked for a tariff
class- ification ruling on nephrite jade blocks from Canada.
You have submitted a copy of the September 1987 issue of
National Geographic magazine in which your jade mining operations
are described, including a picture of you shown splitting an
eight-ton piece of British Columbian nephrite. You have also sent
seven photographs taken at your mine site.
You state that your jade is mined in massive blocks
averaging 2-3 tons each. You indicate, too, that the lapidary
industry cannot use blocks of any stone larger than a few pounds
as the diamond saws that are common to the lapidary industry will
only cut blocks 4 to 6 inches thick.
The jade that you intend to export to the United States are
blocks of jade that have been cut to sizes suitable for use in
the lapidary industry. One of your photographs depicts this jade
in the small "lapidary cut" size. Two of your photographs and a
picture in National Geographic show the custom-made diamond saws,
6' in diameter, that you use at your mine site to reduce the jade
in size.
We understand that your jade blocks will not be polished or
drilled. Nevertheless, nephrite jade blocks that have been sawn
to reduce the blocks to smaller sizes are for purposes of the new
harmonized tariff system "simply sawn or roughly shaped" and
therefore considered to be "worked".
The applicable subheading for the nephrite jade blocks,
whether cut to small "lapidary size" or sawn in larger sizes for
expeditious shipping and handling purposes only, will be
7103.10.4000, Harmonized Tariff Schedule of the United States
(HTS), which provides semiprecious stones...simply sawn or
roughly shaped. The duty rate will be 21% ad valorem.
Nephrite jade blocks originating in the territory of Canada,
and which are classifiable under subheading 7103.10.4000, HTS,
will be entitled to an 8.4% rate of duty under the United States-
Canada Free Trade Agreement (FTA) upon compliance with all
applicable regulations.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
Sincerely,
Jean F. Maguire
Area Director
New York Seaport