CLA-2-71:OT:RR:NC:SP:233
Mr. Robert Silverman
Grunfeld, Desiderio, Lebowitz, Silverman and Klestadt
Counselors at Law
399 Park Avenue 25th Floor
New York, NY 10022-4877
RE: The tariff classification of gold chains from India.
Dear Mr. Silverman:
In your letter dated November 12, 2008, on behalf of Dynamix Chains Mfg.Pvt.Ltd, you requested a tariff classification ruling. The samples which you submitted are being returned separately, as requested.
Samples and description have been submitted for four gold chains. Style number 8R-S is a rope chain necklace that contains two types of links – “S Stations” and rope links. Style number FRZ30-1041 is a “Box Chain” necklace with banana stations. The necklace has two types of links, one link consisting of simple circle loops with no visible loops. Additionally, two larger loops are located on the necklace separating the two types of links. The third sample, style number BRL-1040, is a “Box Chain” necklace with a cable link section. The necklace has two separate kinds of links. The two link styles are separated by two circular gold hoops on two different ends of the necklace. All three necklaces also contain a standard clasp to fasten and remove the necklace from the wearer’s neck. A fourth sample, which has not been assigned a style number, is a rope chain necklace with only one style of link and includes a standard clasp.
A description has been provided regarding the manufacture of these gold chains. Bars or scraps of 24 or 14 karat gold will be produced in various countries. The bars or scraps will be shipped to India, melted down, alloyed to karat and drawn out into 6 mm wire. The wire will then be drawn out through a series of steps to wire sticks measuring one mm or less. The wire is then annealed and wound on spools. The spooled gold wire is then inserted into a machine that converts it into unclosed chain links of 50 meters to 100 meters in length. The dimensions of the links are specifically designed for rope chains, box chains and mixed link chains. The unclosed chain links will be soldered closed, flattened, polished and cut to shorter lengths. Clasps will be added to complete the necklaces. Then the chains will be cleaned, polished, packaged and shipped directly to the United States. This manufacturing process involves a double substantial transformation in India and thus makes India the country of origin for these chains.
The applicable subheading for the rope link gold chains will be 7113.19.2180, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal: Of other precious metal, whether or not plated with precious metal: Other: Necklaces and neck chains, of gold: Rope: Other”. The rate of duty will be 5% ad valorem.
The applicable subheading for the mixed link gold chains, style numbers 8R-S, FRZ30-1041 and BRL-1040, will be 7113.19.2580, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal: Of other precious metal, whether or not plated with precious metal: Other: Necklaces and neck chains, of gold: Mixed link: Other”. The rate of duty will be 5.8% ad valorem.
Articles classifiable under subheading 7113.19.2180 and 7113.19.2580, HTSUS, which are products of India, are currently entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP, however, is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Web site at www.cbp.gov and search for the term “GSP”.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Lawrence Mushinske at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division