CLA-2-:71:S:N:N3G:344 864613
Mr. Max Rosequist
Yukon Jade Ltd.
10330 SE 147th Avenue
Portland, OR 97236
RE: The tariff classification of rough-sawn nephrite jade from
Canada.
Dear Mr. Rosequist:
In your letter of May 30, 1991, you asked for a tariff
classification ruling on rough-sawn jade from Canada.
You indicate that you own and operate two nephrite jade
mines in Canada.
You have been mining for nine years and selling your rough jade
to Taiwan and China. You are now interested in manufacturing some
nephrite jade products in the United States.
Jade from your Canadian mines comes from two sources: (1)-
loose talus slope boulders, which have been weathered and rolled
down the hill from their original location and, (2)-jade in
place, normally a ledge.
You state that most of the loose talus slope boulders of
acceptable quality have already been mined and sold. There are
still a few large boulders, in the 10 to 50 ton range, most of
which must be divided for ease of handling and shipping.
All of the jade in place (in ledges) must be divided or
reduced in size before it can be removed from the mountain.
Separating the jade from the non-jade rock requires jade
miners to use alternate methods of mining. One method involves
drilling completely through a boulder every four inches in a
straight line and then wedging it apart, by driving a special
wedge in each hole.
A second method involves the use a wire cable to cut the
jade boulder. With this method a very rough surface is obtained--
not the straight flat cut that is obtained by using a circular
saw.
Under the previous Tariff Schedules of the United States
(TSUS), "rough" precious and semiprecious stones that were rough-
sawn or roughly shaped (for ease of handling and transporting)
were free of duty under a TSUS provision for precious and
semiprecious stones, natural...whether in their natural form or
broken but not advanced in condition or value from their natural
state, and not set.
With the advent of the Harmonized Tariff Schedule of the
United States (HTSUS) on January 1, 1989, rough precious stones
(other than diamonds) and semiprecious stones that are unworked
remain free of duty. "Unworked" is a reference to rough
gemstones as taken from the earth.
Nephrite jade that is rough raw stone as directly taken from
the mine and unworked is classifiable under the provision for
precious stones (other than diamonds) and semiprecious
stones...unworked or simply sawn or roughly shaped: unworked...in
subheading 7103.10.2000, HTSUS, and are free of duty.
Nephrite jade that has been trimmed, or wedged apart into
boulders of manageable size, or rough-sawn by a wire cable or by
a circular saw, is jade "simply sawn or roughly shaped," that is,
jade that has been "worked." The jade produced in the mining
operations described by you is "worked" and cannot be treated as
"raw unworked jade," as suggested by you.
The applicable subheading for the nephrite jade that has
been trimmed, or wedged apart or rough sawn, will be 7103.10.4000
(HTSUS), which provides for precious stones (other than diamonds)
and semiprecious stones...unworked or simply sawn or roughly
shaped: other [other than unworked--simply sawn or roughly
shaped]. The rate of duty will be 21% ad valorem.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport