CLA-2-71:OT:RR:NC:N1:126
Gail T. Cumins
Sharretts, Paley, Carter and Blauvelt, P.C.
75 Broad Street
New York, NY 10004
RE: The tariff classification of gold coin blanks.
Dear Ms. Cumins:
In your letter dated August 14, 2018, on behalf of your client, Heraeus Metals New York LLC, you requested a tariff classification ruling.
The merchandise is described as gold coin blanks of 24k fine gold specifically designed to produce legal tender gold coins for the United States Mint. Multiple steps are described in the manufacture of these blanks. These multiple steps are as follows:
Step 1 – Melting: The gold is refined when received from mines, industrial scrap, or recycled gold (i.e., old jewelry).
Step 2 – Polishing: The refined gold strips are polished. Post-melting oxidation is eliminated from the strips.
Step 3 - First Rolling: This process consists of rolling the rough strips to reduce the thickness while hardening and conforming the material for the subsequent steps.
Step 4 – Annealing: The hardness and structure of the metal is modified further by an annealing process in the furnace.
Step 5 – Rolling for Finishing: The finishing rolling steps serve to upgrade the strip to the desired thickness with a very high precision.
Step 6 – Cutting/Blanking: From the rolled and annealed strips, blanks are cut to the shape of the finished product.
Step 7 – Weighing: The pieces are checked and the weight corrected as necessary.
Step 8 – Surface Treatment (Tumbling): The blanks are marked and scratched due to the mechanical processing. The surfaces of the blanks are polished and homogenized by using the tumbling.
Step 9 – Packaging: In the last step, the blanks are placed at the center of a polyethylene terephthalate (PET) blister. The blister is scaled with another layer of PET and ready for delivery.
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs, 2 through 6, may be applied in order. GRI 2 (a) reads: Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings at the international level. See T.D. 89-80, 54 Fed. Reg. 35127 (Aug. 23, 1989). Rule 2 (a) is further discussed and elaborated upon in the ENs to the HTSUS. The ENs to Rule 2 (a), incomplete and unfinished articles state: (I) The first part of Rule 2 (a) extends the scope of any heading which refers to a particular article to cover not only the complete article but also that article incomplete or unfinished, provided that, as presented, it has the essential character of the complete or finished article. (II) The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term "blank" means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part (e.g., bottle preforms of plastics being intermediate products having tubular shape, with one closed end and one open end threaded to secure a screw type closure, the portion below the threaded end being intended to be expanded to a desired size and shape). Semi-manufactures not yet having the essential shape of the finished articles (such as is generally the case with bars, discs, tubes, etc.) are not regarded as “blanks”.
We agree that the gold coin blanks of 24k gold, in accordance with the ENs to Rule 2 (a) (II), in that the blanks have the essential size and shape of the finished coins, and are processed to exacting standards as provided by the Mint’s technical specifications.
HTSUS subheading 7108.20.0000 “Monetary” is a provision for gold in semi-manufactured forms. The term "monetary” is not defined in the text of the HTSUS, nor the ENs to HTSUS, of heading 7108. When terms are not defined, they are construed in accordance with their common and commercial meaning – Nippon Kogasku (USA), Inc. v. United States, 69 CCPA 89, 673 F.2d 380 (1982). Common and commercial meaning may be determined by consulting dictionaries, lexicons, scientific authorities and other reliable sources. C.J. Tower & Sons v. United States, 69 CCPA 128, 673 F.2d 1268 (1982). In consultation with the online Oxford English Dictionary, the meaning for “monetary” states “Of or relating to coinage or currency.” Further reference for the meaning of coinage and coining, provides, that coinage is the action or process of coining money, and coining is the making of coin; minting. With case in point, the gold coin blanks meet the definition of “monetary” and are classifiable in subheading 7108.20.0000 of the HTSUS. The applicable subheading for the gold blank coins, will be 7108.20.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Gold (including gold plated with platinum) unwrought or in semimanufactured forms, or in powder form: Monetary.” The general rate of duty will be free.
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 the World Wide Web at https://hts.usitc.gov/current.
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 Elena Pietron at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division