CLA-2-71:S:N:N1:115 876519
Mr. Martin W. Bloch
Intertrans Corporation
9770 Harrison Road
Romulus, MI 48174
RE: The tariff classification of silver coins from Russia.
Dear Mr. Bloch:
In your letter dated June 30, 1992, you requested a tariff
classification ruling, on behalf of your client, Interolympus in
Saginaw, MI and their subsidiary, USA Sales, Inc.
The subject items are silver coins minted in Russia. The
coins will have all wording in Russian. On one side, the weight
is indicated as 1 oz and the notation Ag999 appears. This
signifies that they are 99.9% silver. They are minted from U.S.
origin silver that is shipped to Russia and pressed into coins.
None of these coins are legal tender. They are considered
to be medals and may become collectors' items. Its intrinsic
value corresponds to the actual silver content.
Your suggestion as to these coins being classified under
9802, HTS has been considered. Please note the following:
HTSUS subheading 9802.00.50 provides a partial duty
exemption for articles returned to the United States after having
been exported to be advanced in value or imported in condition by
means of repairs or alterations. Articles entitled to this
partial duty exemption are dutiable only upon the value of the
foreign repairs or alterations, upon compliance with the
documentary requirements of section 10.8, Customs Regulations (19
CFR 10.8). However, entitlement to this tariff treatment is
precluded where the exported articles are incomplete for their
intended use prior to the foreign processing, Guardian Industries
Corp. v. United States, 3 CIT 9 (1982), as "repairs and
alterations are made to completed articles and do not include
intermediate processing operations which are performed as a
matter of course in the preparation or the manufacture of
finished articles." Dolliff & Company, Inc., v. United States,
C.D. 4755, 81 Cust.Ct 1, 455 F.Supp. 618 (1978), aff'd, C.A.D.
1225, 66 CCPA 77, 599 F.2d 1015 (1979) (Court's emphasis). Thus,
"the focus is upon whether the exported article is incomplete or
unsuitable for its intended use prior to the foreign processing."
Guardian Industries.
The applicable subheading for the silver coins will be
7114.11.7000, Harmonized Tariff Schedule of the United States
(HTS), which provides for articles of goldsmiths' or
silversmiths' wares and parts thereof: of silver, whether or not
plated or clad with other precious metal: other. The duty rate
will be 6% ad valorem.
Your inquiry does not provide enough information for us to
give a ruling on the country of origin marking requirements.
Your request for a marking ruling should include a description of
the manner in which the coins will be packaged.
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