CLA-2-71:OT:RR:NC:N4:433
Brenda Bodnar
Director, Corporate Customs Compliance
JAG Footwear, Accessories and Retail Corporation
180 Rittenhouse Circle
Bristol, PA 19007
RE: The tariff classification of necklace and earrings from China.
Dear Ms. Bodnar:
In your letter dated September 21, 2010, you requested a tariff classification ruling. As requested, the samples submitted will be returned to you.
Sample A1605 (item number 60107762-Z01) consists of two items: (1) a base metal chain link necklace having visible metal eye pins that link colored plastic beads, colored plastic faceted gemstones and colored plastic box-like faceted ornaments onto the necklace; the necklace closes by means of a base metal lobster clasp, and (2) a pair of earrings, each having a metal fishhook finding with one hanging colored plastic box-like faceted ornament. The necklace and earrings are a coordinated pairing, and will be marketed under the brand name Design Studio. Although the samples are not packaged for retail sales, information within the ruling request states that these items are a set.
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUS is such that most goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs (1 through 6) may then be applied.
There is no disagreement that the necklace and earrings under consideration are classified in heading 7117, HTSUS. One question is whether these goods form a set put up for retail sale. GRI 6 states that “the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable.”
By application of GRI 6, we turn to GRI 3 (b) which states that when goods are prima facie classifiable under two or more (sub)headings, classification shall be determined as follows:
(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a) [by reference to the (sub)heading which provides the most specific description], shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
GRI 3 (b) states that composite goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. Under Explanatory Note (EN) to the HTSUS, (VIII) to GRI 3 (b), “the factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.”
For the subject merchandise: (1) the necklace is composed of base metal chain links and metal eye pins, which provide the structure and form for the item, thereby allowing the decorative jewelry findings to be attached, (2) each of the earrings are composed of a base metal fishhook wire, which provides the structure, form and shape for the item, onto which a decorative ornament is placed per earring. As such, the essential character for the necklace and earrings is imparted by the base metal for both jewelry pieces, resulting in the classification for these items falling to subheading 7117.19.9000, HTSUS – the provision for imitation jewelry of base metal.
EN (X) for GRI 3 (b), states that for the purposes of this Rule, the term “goods put up in sets for retail sale” shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings . . .; (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).
Here, the base metal, necklace and fishhook earrings, with decorative jewelry findings made from plastic, are both classified in the same subheading; is packaged for the specific activity of personal adornment; and although not stated or provided, both items most likely will is marketed and packaged on one blister card, for retail sale directly to the consumer without repacking. We find that the necklace and earrings meet condition (b) and (c) [based on being packaged for retail sales] for sets as listed in EN X for GRI 3 (b). However the jewelry pieces do not meet condition (a) as specified above, in that the items are not classified in two or more (sub)headings of the HTSUS. Consequently, the necklace and earrings are not classifiable as sets within the meaning of the tariff schedule, and therefore must be classified separately.
The applicable subheading for the necklace and earrings, classified separately, will be 7117.19.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Imitation jewelry: Of base metal, whether or not plated with precious metal: Other: Other: Other.” The rate of duty will be 11% ad valorem.
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 Neil H. Levy at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division