CLA-2-71:OT:RR:NC:N4:433
C.J. Erickson, Esq.
Cowan, Liebowitz & Latman, P.C.
1133 Avenue of the Americas
New York, NY 10036
RE: THE COUNTRY OF ORIGIN AND COUNTRY OF ORIGIN MARKING OF PRECIOUS METAL RINGS OF UNITED STATES ORIGIN SENT TO THE DOMINICAN REPUBLIC FOR THE SETTING OF PRECIOUS AND SEMIPRECIOUS GEMSTONES.
Dear Mr. Erickson:
In your letter dated December 28, 2015, on behalf of Tiffany & Co., you requested a country of origin ruling on precious metal rings made of gold casted in the United States and sent to the Dominican Republic to be set with melee diamonds, solitaire diamonds and other solitaire stones. For purposes of this ruling “other solitaire stones” will mean only precious and semiprecious gemstones, not being diamonds.
The merchandise concerned involves United States casted rings of gold sent to the Dominican Republic for polishing and setting of melee diamonds, solitaire diamonds and other solitaire stones of various origin. After assembling the rings in the Dominican Republic, the rings are sent back to the United States for final polishing.
To understand the country of origin and the country of origin marking of the merchandise concerned an eligibility review under the Dominican Republic-Central America-United States Free Trade Agreement Implementation ACT (DR-CAFTA) is necessary. General Note 29 of the Harmonized Tariff Schedule of the United States (HTSUS) sets forth the rules and requirements of the DR-CAFTA, and provides for the “Change in tariff classification rules” for purposes of originating goods under the DR-CAFTA.
I. Originating Good Analysis:
The DR-CAFTA was signed on August 5, 2004, and includes as parties the United States, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and Costa Rica. The provisions of the DR-CAFTA were adopted by the U.S. in the Dominican Republic Central America Free Trade Agreement Implementation Act, Public Law 109-53 (2005).
Pursuant to GN 29 (b), goods are eligible for treatment as an originating good if—
(i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the agreement;
(ii) the good was produced entirely in the territory of one or more of the parties to the agreement and—
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or
(iii) the good was produced entirely in the territory of one or more of the parties to the agreement exclusively from originating materials.
The imported precious metal rings set with precious or semiprecious gemstones are not wholly obtained or produced entirely in the territory of the DR-CAFTA countries.
The imported rings set with precious or semiprecious gemstones are assembled entirely in a DR-CAFTA country. Since the merchandise concerned is classified in subheading 7113.19, HTSUS, the applicable change in tariff classification rule or tariff shift rule of origin is set forth in GN 29 (n): Chapter 71 – 8: A change to heading 7113 from any other heading, except from heading 7116.
In this instance, all of the non-originating materials, the precious and semiprecious gemstones of various origins, undergo a change to heading 7113 from any other heading, except from heading 7116, and therefore satisfy the tariff shift rule of origin as listed above. See Headquarters rulings: HQ H033395 dated July 22, 2009 and HQ H066896 dated September 14, 2009. Accordingly, the imported precious metal rings set with precious and semiprecious gemstones are “eligible” for preferential treatment under the DR-CAFTA upon compliance with all applicable laws, regulations and agreements.
II. Country of Origin Marking:
Section 304 of the Tariff Act of 1930 (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the U.S. 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 U.S. the English name of the country of origin of the article.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. 1304. Pursuant to 19 CFR 134.1(b), “country of origin” means 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. A substantial transformation results when a new and different article emerges from the processing having a distinctive name, character or use. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 269 (1940).
In determining whether the combining of parts or materials constitutes a substantial transformation, the issue is the extent of operations performed and whether the parts lose their identity and become an integral part of the new article. Belcrest Linens v. United States, 573 F. Supp. 1149 (CIT 1983), aff’d, 741 F.2d 1368 (Fed. Cir. 1984). Assembly operations which are minimal or simple, as opposed to complex or meaningful, will generally not result in a substantial transformation. See C.S.D. 85-25.
Consistent with HQ 555801 dated January 2, 1991 and N251883 dated April 17, 2014, in which the mounting (setting) of gemstones while abroad onto precious metal rings casted in the United States was considered a simple combining operation, we are of the opinion that the setting of melee diamonds, solitaire diamonds and other solitaire stones of various origin onto gold ring castings of United States origin is also a simple combining/assembly operation. As such, the simple assembly operation does not substantial transform the precious metal rings of United States origin into goods of the Dominican Republic; consequently, the country of origin is the United States. Goods of United States origin are not subject to the country of origin marking requirements under 19 U.S.C. §1304, and are therefore exempt from country of origin marking upon importation into the United States.
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 [email protected].
Sincerely,
Deborah C. Marinucci
Acting Director
National Commodity Specialist Division