CLA-2-71:OT:RR:NC:N4:433
David Mora
Mac Terra Import
2109 Carnation Court
Garland, TX 75040
RE: The tariff classification of sterling jewelry from Spain.
Dear Mr. Mora:
In your letter dated November 16, 2015, you requested a tariff classification ruling. Illustrative literature was provided.
Your ruling request concerns various pieces of jewelry divided into two categories. The first category of jewelry pieces include: necklaces, a ring and a pair of earrings in 0.925 polished sterling silver containing Praga crystal beads. The second category of jewelry pieces include: macramé bracelets with one or more 0.925 sterling silver charms, macramé bracelets each having an individual 0.925 sterling silver ornament, and a macramé bracelet that has an individual 0.925 sterling silver ornament plus four charms. For Harmonized Tariff Schedule (HTS) purposes, this ruling will take into account that all of the jewelry pieces are valued over $18 per dozen pieces. In the event that any of the jewelry pieces are valued at $18 and under, per dozen pieces or parts, please submit a new ruling request, as the duty rate is significantly higher.
Category-1:
Item MAR1211R is described as the large star pendant in 0.925 polished sterling silver with 28 light pink Praga (Czech Republic region) crystal (glass) beads (4mm in diameter), with black jewelry string necklace, and sterling silver lobster clasp – this item will be referred to as a pendant necklace.
Item MAR0177R is described as the medium star ring in 0.925 polished sterling silver with 12 light pink Praga crystal beads (4mm in diameter).
Item CAD1211R is described as the 65 cm. long necklace with 42 light pink Praga crystals strung with 0.925 sterling silver, and sterling silver lobster clasp. The photo depicts sterling silver eye pins running throughout the necklace connecting the Praga crystal “beads” together.
Item MAR00263 is described as the cultivated pearl (7-8mm, approximately), and 0.925 polished sterling silver fish earrings. This item appears to be further described as the light pink Praga crystal earrings with 0.925 sterling silver hook. Due to the inconsistency of description, we are unable to rule upon this item at this time. Upon clarification furnished of this item, a new ruling will be issued.
Category-2:
Item MAR00108 is described as the macramé bracelet in black jewelry string with 1, 0.925 sterling silver charm.
Item MAR00109 is described as the macramé bracelet in black jewelry string with 2, 0.925 sterling silver charms.
Item MAR00110 is described as the macramé bracelet in black jewelry string with 3, 0.925 sterling silver charms.
Item MAR00111 is described as the macramé bracelet in black jewelry string with 4, 0.925 sterling silver charms.
Item MAR00223 is described as the macramé bracelet in black jewelry string with 1, 0.925 sterling silver fish.
Item MAR00224 is described as the macramé bracelet in black jewelry string with 1, 0.925 sterling silver shell.
Item MAR00225 is described as the macramé bracelet in black jewelry string with 1, 0.925 sterling silver shell plus 4 charms.
Legal Note 2 (a) to Chapter 71 of the Harmonized Tariff Schedule of the United States (HTSUS) provides headings 7113, 7114, 7115 do not cover articles in which precious metal or metal clad with precious metal is present as minor constituents only, such as minor fittings or minor ornamentation (for example, monograms, ferrules and rims), and paragraph (b) of the foregoing note does not apply to such articles. Legal Note 2 (b) provides that heading 7116 does not cover articles containing precious metal or metal clad with precious metal (other than as minor constituents).
Legal Note 11 to Chapter 71 of the HTSUS provides that for the purposes of heading 7117, the expression “imitation jewelry” means articles of jewelry within the meaning of paragraph (a) of note 9 above (but not including buttons or other articles of heading 9606, or dress combs, hair slides or the like, or hairpins, of heading 9615), not incorporating natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed) nor (except as plating or as minor constituents) precious metal or metal clad with precious metal. See Legal Note 9 (a), HTSUS, for a complete listing of exemplars (rings, bracelets, necklaces, earrings ….) concerning the expression “articles of jewelry” as it relates to the expression “imitation jewelry.”
The Explanatory Notes (ENs), which constitute the official interpretation of the HTS at the international level, for Chapter 71, heading 7113 “Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal,” provide in pertinent part, that to fall within heading 7113 – these articles “must” contain precious metal or metal clad with precious metal (including base metal inlaid with precious metal) to an extent exceeding minor constituents; (thus a cigarette case of base metal with a simple monogram of gold or silver remains classified as an article of base metal). Still, further evidence of the meaning of minor constituents can be found in the ENs to heading 7116, HTSUS, which provides in pertinent part, that the goods of heading 7116 may contain precious metal or metal clad with precious metal as minor constituents (e.g., a pearl necklace with a gold fastener).
Upon review of the illustrative literature, we find that the proper classification: for category-1 jewelry pieces, the large star pendant necklace, the medium star ring, and the 65 cm. long necklace with 42 Praga crystal beads stung together via numerous sterling silver eye pins, to be subheading 7113.11.5080, HTSUS; and for category-2 jewelry pieces, macramé bracelets with one or more sterling silver charms, macramé bracelets having an individual sterling silver ornament, and a macramé bracelet that has an individual sterling silver ornament plus four sterling silver charms, to be 7113.11.5080.
For category 1 jewelry pieces, we are of the opinion that the “sterling silver casting” of the pendant and ring is not of minor constituents and is essential in the creating of the jewelry pieces. Additionally, for category-1, we are of the opinion that the “sterling silver eye pins” of the 65 cm. long necklace with 42 Praga crystal beads are not of minor constituents, in that the eye pins in their aggregate connect the beads together, thereby forming the beaded necklace. For category-2 jewelry pieces, we are of the opinion that the “sterling silver charms and ornaments,” both providing the ornamentation for the jewelry pieces, are of more than minor constituents.
The applicable subheading for MAR1211R, MAR0177R, CAD1211R, MAR00108, MAR00109, MAR00110, MAR00111, MAR00223, MAR00224 and MAR00225, 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.
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).
Although not requesting a country of origin ruling, it would be prudent of your company to seek such a ruling, because the simple combining of beads, charms and ornaments does not usually effect a “substantial transformation” of castings, whether pendants, rings, bracelets, etc. from that of their country of manufacture. See 19 Code of Federal Regulations (CFR), Part 134 – Country of Origin Marking, Subpart A, 134.1 (b).
If you choose to request a country of origin ruling, please submit complete process descriptions for each country where manufacturing or assembly took place. Also include any other relevant documents of the work undertaken, the advancement of constituent materials and the location of work performed.
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 [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division