CLA-2-71:OT:RR:NC:N4:433
Shawn Glover
UPS Trade Management Services, Inc.
2031 S. Centennial Avenue
Aiken, SC 29803
RE: The tariff classification of a necklace and pair of earrings from China.
Dear Mrs. Glover:
In your letter dated February 20, 2012, on behalf of Avon Products Inc., you requested a tariff classification ruling. Specification sheets and a photo were provided.
Item number PP1156624 is described as the “Drusy Giftset.” The gift-set is comprised of a necklace with a pair of coordinating earrings. Based on the specification sheets and photo, the necklace is composed of a brass chain that is 10.5” by 2mm; 9 zinc castings that hold 9 epoxy (plastic) drusy stones, 12 brass jump-rings; 1 beaded freshwater pearl; and one brass clasp and extender. There are five square epoxy drusy stones, three round epoxy drusy stones and one tear drop epoxy drusy stone, all of which are set in zinc castings. Each earring is composed of an earpost and earnut made from titanium and brass, and has one square epoxy drusy stone set in a casting made from zinc. No weight specifications were provided for the necklace and earrings. Both the necklace and earrings are plated in shiny brass. Cost data indicates that the metal components which include the cost of plating and the epoxy stones are near equal in value, while the freshwater pearl is of negligible value when compared against the total cost of the gift-set.
The Explanatory Notes (ENs), which constitute the official interpretation of the Harmonized Tariff Schedule of the United States (HTSUS) at the international level, for Chapter 71, heading 7116 (Articles of natural or cultured pearls, precious and semi-precious stones (natural, synthetic or reconstructed), state in pertinent part, this heading covers all articles (other than those excluded by Notes 2 (b) and 3 to this Chapter), wholly of natural or cultured pearls, precious or semi-precious stones, or consisting partially of natural or cultured pearls or precious or semi-precious stones, but not containing precious metals or metals clad with precious metal (except as minor constituents). Additionally, the ENs to heading 7117, Imitation jewelry, excludes articles of jewelry containing natural or cultured pearls, and precious and semi-precious stones.
Furthermore, the ENs state in Note X to Rule 3 (b) that the term “goods put up in sets for retail sale” means goods which: 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 and carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking. In this instance, the necklace with its freshwater pearl is classified as an article of natural or cultured pearls (heading 7116) and the earrings containing no pearls or semiprecious gemstones are classified as imitation jewelry (heading 7117); are used together for purposes of adorning one’s self; and are packaged together for retails sales. As such, we find that the necklace and coordinating earrings fall within the term goods put up in sets for retail sales.
We are of the opinion that the necklace by means of its sheer size and bulk, as well as visual appearance, is the major piece that defines the giftset. Consequently, as the necklace contains a freshwater pearl the giftset is classifiable in heading 7116, HTSUS.
The applicable subheading for the Drusy Giftset, if the freshwater pearl is natural, will be 7116.10.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed): Of natural or cultured pearls: Natural.” The rate of duty will be 3.3% ad valorem.
The applicable subheading for the Drusy Giftset, if the freshwater pearl is cultured, will be 7116.10.2500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed): Of natural or cultured pearls: Cultured.” The rate of duty will be 5.5% 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,
Thomas J. Russo
Director
National Commodity Specialist Division