CLA-2-:71:S:N:N3G:344 875238
Mr. Branislav Krtinic
Impex Overseas Corporation
350 Fifth Avenue - 22nd Floor
New York, N. Y. 10118
RE: The tariff classification of 14K gold chain necklaces,
earrings, rings, bracelets and pendants from Yugoslavia.
Dear Mr. Krtinic:
In your letter of June 3, 1992, you requested a tariff
classification ruling on certain 14K gold jewelry articles.
You have indicated in your letter that you purchase gold
bullion from an American bank and send it to Yugoslavia where it
is melted down and alloyed with copper and silver and made into
chains, earrings, rings, bracelets and pendants.
You ask if you are required to pay duty on these 14K gold
jewelry articles upon importation into the United States,
inasmuch as you already own the gold.
Subheading 9802.00.80, Harmonized Tariff Schedule of the
United States, provides for articles assembled abroad in whole or
in part of fabricated components, the product of the United
States, which (a) were exported in condition ready for assembly
without further fabrication (b) have not lost their physical
identity in such articles by change in form, shape or otherwise,
and (c) have not been advanced in value or improved in condition
abroad except by being assembled and except by operations
incidental to the assembly process such as cleaning, lubricating,
painting. Duty would be upon the full value of the imported
article, less the cost or value of such products of the United
States.
In order to meet the requirements under subheading
9802.00.80, HTS, a product would have to be merely assembled
abroad from American-made components and not substantially
transformed into a new and different article.
A substantial transformation occurs when, as a result of
manufacturing processes, a new and different article emerges,
having a distinctive name, character, or use, which is different
from that originally possessed by the article or material before
being subject to the manufacturing process.
In your situation, the processing of gold bullion from the
U. S. into 14K gold jewelry in Yugoslavia would constitute a
substantial transformation. The gold jewelry would be products
wholly of Yugoslavia and ineligible for entry under Subheading
9802.00.80, HTS.
The applicable subheading for the 14K gold necklaces and
neck chains, if of rope, will be 7113.19.21, Harmonized Tariff
Schedule of the United States (HTS), which provides for necklaces
and neck chains, of gold, rope. The rate of duty will be 6.5.%
ad valorem.
The applicable subheading for the 14K gold necklaces and
neck chains if of mixed link will be 7113.19.25, HTS, which
provides for necklaces and neck chains, of gold, mixed link. The
rate of duty will be 6.5% ad valorem.
The applicable subheading for the 14K gold necklaces and
neck chains if other than rope or mixed link will be 7113.19.29,
HTS, which provides for necklaces and neck chains of gold, other.
The rate of duty will be 6.5% ad valorem.
The applicable subheading for the 14K gold earrings,
bracelets, rings or pendants will be 7113.19.50, HTS, other. The
rate of duty will be 6.5% ad valorem.
We would also refer you to Federal Register Vol. 57, No. 107
dated June 3, 1992, concerning the country of origin marking
requirements for the former Yugoslav Republics.
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