CLA-2-71:OT:RR:NC:N4:433
Francene Hinds
JAV International Inc.
500 Ocean Avenue
East Rockaway, NY 11518
RE: The tariff classification of bangles with charms from China.
Dear Ms. Hinds:
In your letter dated March 16, 2016 you requested a tariff classification ruling. The sample submitted will be returned to you as requested.
SKU # 555118940 is described as “Hallmark Bangle Charm Watch and Charm Bangles.” The item is a set of four bangles adorned with charms. The thin and rigid bangles are made of base metal. Each bangle contains charms made of base metal with at least one charm embedded with cubic zirconiums. The charms in various shapes and sizes attach the bangle with a jump ring. A metal watch charm is also attached to one of the bangles. No component breakdown was provided. The bangles can be worn all together. All of the items are packaged together in a jewelry box for retail sale.
The Explanatory Notes (ENs), which constitute the official interpretation of the Harmonized Tariff Schedule of the United States (HTSUS) at the international level, state in Note X to Rule 3 (b) of the General Rules of Interpretation (GRIs), 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.
The bangle charm watch and charm bangles are packaged together ready for retail sale. Accordingly, the item is a “set” for tariff purposes, in that jewelry and watch are prima facie classifiable in two or more different headings of the HTSUS, are put up together to carry out the specific function of adorning ones body.
Goods classifiable as “sets” under GRI 3 (b) of the HTSUS are classified as if they consisted of the component or components taken together, which can be regarded as conferring on the set as a whole its essential character. Regarding the essential character of the merchandise concerned, the ENs to the HTSUS, at GRI 3 (b) (VIII), state that “the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.”
Legal Note 11 to Chapter 71 of the Harmonized Tariff Schedule of the United States (HTSUS) provides that for the purposes of heading 7113, the expression "articles of jewelry" means:
(a). Any small objects of personal adornment (gem-set or not) (for example, rings,bracelets, necklaces, brooches, earrings, watch chains, fobs, pendants, tie pins, cuff links, dress studs, religious or other medals and insignia); and
b). Articles of personal use of a kind normally carried in the pocket, in the handbag or on the person (for example, cigar or cigarette cases, snuff boxes, ca chou or pillboxes, powder boxes, chain purses or prayer beads).
Legal Note 11 to Chapter 71 of the Harmonized Tariff Schedule of the United States (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.
It is our opinion that the charm watch is not the essential character of the Hallmark Bangle Charm Watch and Charm Bangles. The jewelry pieces cannot be classified as imitation jewelry in heading 7117 of the Harmonized Tariff Schedule of the United States (HTSUS) for they contain Cubic Zirconium (CZ) chips embedded within the charms, which are considered to be a simulated diamonds. The synthetic (simulated) diamond is categorized under precious gemstones. Accordingly, the merchandise concerned is classified in heading 7116, HTSUS.
The applicable subheading for the Hallmark Bangle Charm Watch and Charm Bangles will be 7116.20.0580, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed): Of precious or semiprecious stones (natural, synthetic or reconstructed): Articles of jewelry: Valued not over $40 per piece: Other.” The rate of duty will be 3.3% 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 E-mail address: [email protected].
Sincerely,
Deborah Marinucci
Acting Director
National Commodity Specialist Division