CLA-2-71:OT:RR:NC:N4:433
Debra A. Aillet
Customs Compliance Analyst
Tiffany & Co.
15 Sylvan Way
Parsippany, NJ 07054
RE: The tariff classification of three pendant necklaces assembled in Spain, and the country of origin of those three jewelry pieces.
Dear Ms. Aillet:
In your letter dated April 4, 2013, you requested a tariff classification and country of origin ruling. For the three jewelry pieces (merchandise concerned) illustrative literature and material breakdown spreadsheets were provided. The material breakdown spreadsheets for the necklaces indicate that the semiprecious stones including their carvings (pendants) are country of origin China, while the precious metal chains are country of origin Spain.
Document # 32713.30793838 is described as a sterling silver mini touchstone black jade pendant. Illustrative literature indicates a carved black jade pendant, connected to a 16-inch sterling silver chain. In the center of the pendant there is a sterling silver insert.
Document # 32713.30793854 is described as a yellow gold mini lapis jug pendant. Illustrative literature indicates a carved lapis pendant in the shape of a jug, having a yellow gold wire wrapped around the upper part of the jug, connected to an 18-inch yellow gold chain.
Document # 32713.30793897 is described as a sterling silver small apple black jade pendant. Illustrative literature indicates a carved black jade pendant in the shape of a small apple, having an upper centered sterling silver insert, connected to a 16-inch sterling silver chain.
The merchandise concerned is classified in accordance with the General Rules of Interpretation (GRIs) to the Harmonized Tariff Schedule of the United States (HTSUS), at GRI 1, by the terms of the headings and any relative section and chapter notes. Legal Note 2 (b) to Chapter 71 of the HTSUS, states: Heading 7116 does not cover articles containing precious metal or metal clad with precious metal (other than as minor constituents). Upon review of the illustrative literature and material breakdown spreadsheets, the merchandise concerned contains precious metals in amounts exceeding minor constituents.
The applicable subheading for the sterling silver mini touchstone black jade pendant and the sterling silver small apple black jade pendant, will be 7113.11.5080, 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 precious metal whether or not plated or clad with precious metal: Of silver, whether or not plated or clad with other precious metal: Other: Other; Other.” The rate of duty will be 5% ad valorem
The applicable subheading for the yellow gold mini lapis jug pendant, will be 7113.19.2980, 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 precious metal whether or not plated or clad with precious metal: Other: Necklaces and neck chains, of gold: Other.” 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/.
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304), provides that unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. § 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. § 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b), CBP Regulations (19 C.F.R. § 134.1(b)), defines “country of origin” as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the country of origin within the meaning of [the marking laws and regulations].” A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See Texas Instruments, Inc. v. United States, 69 C.C.P.A. 142, 681 F.2d 778 (1982).
The following analysis is for marking purposes only. We believe that the essential character of pendant necklaces is imparted by their pendants, in that, the titles of the jewelry pieces contain the name of the semiprecious stones and identifies them as pendants; the semiprecious stones exceed the cost of the precious metal; and more importantly, it is the carved semiprecious stones that make each of the jewelry pieces alluringly appealing.
There appears to be no substantial workings or further manufacture of the pendants beyond that of assembling the precious metal chains to the pendants. It is our opinion that no substantial transformation occurs of Chinese origin semiprecious stone pendants by the addition of Spanish origin precious metal chains to form pendant necklaces. For the pendant necklaces, the country of origin is China.
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