CLA-2-71:OT:RR:NC:N4:463
John A. Schoenig
GDLSK LLP
599 Lexington Avenue, 36th FL
New York, NY 10022-7648
RE: The tariff classification and country of origin of a jeweled seahorse pendant.
Dear Mr. Schoenig:
In your letter dated September 23, 2019, on behalf of your client, VDA Jewellery Limited, you requested a tariff classification and country of origin ruling on a seahorse pendant. We received literature and a photo for review.
You request classification in subheading 7113.19.5090, Harmonized Tariff Schedule of the United States (HTSUS) and suggested that the country of origin is Hong Kong.
Per the literature and photo provided, the subject merchandise is a jeweled, gold pendant in the shape of a seahorse. In Hong Kong, the seahorse is cast in gold, cleaned and buffed. The pendent is then sent to China with the diamonds (India) and colored stones (Thailand), where the casting is electroplated with rhodium, the diamonds and colored stones are mounted in the casting. The finished pendant is cleaned and packaged for shipping to the United States.
CLASSIFICATION
Classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes.
Legal Note 1(b) and Legal Note 9 to Chapter 71 of the HTSUS are applicable and pertinent to the classification of the seahorse pendant.
Legal Note 1(b), HTSUS, provides in pertinent part that all articles consisting wholly or partly of precious metal or metal clad with precious metal are to be classified in Chapter 71, HTSUS.
Legal Note 9, HTSUS, provides in pertinent that for purposes of heading 7113, the expression “articles of jewelry” means:
(a) Any small objects of personal adornment (for example, rings, bracelets, necklaces, brooches, earrings, watch chains, fobs, pendants, tie pins, cuff links, dress studs, religious or other medals and insignia); ….
In accordance with the HTSUS Chapter 71 Legal Notes, the gold seahorse pendant is classified in 7113.19.5090, HTSUS, as “Articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal: Of other precious metal, whether or not plated or clad with precious metal: Other: Other: Other.” The duty rate will be 5.5%.
COUNTRY OF ORIGIN
The country of origin of an article that is processed in more than one foreign territory or country is the foreign territory or country, or insular possession where it last underwent a “substantial transformation,” 19 CFR 134.1(b).
CBP has long held that a “complex or meaningful” assembly operation may result in a substantial transformation while a “minimal, simple, assembly-type operation” ordinarily will not result in a substantial transformation. The term “simple assembly” is defined in 19 CFR 102.11(o) as “the fitting together of five or fewer parts all of which are foreign (excluding fasteners such as screws, bolts, etc.) by bolting, gluing, soldering, sewing or by other means without more than minor processing.”
In Hong Kong, gold and metal alloys are combined and the liquefied gold is poured into a mold to form the pendant casting. After cooling, the casting is removed from the mold and tempered. The pendant is subsequently cleaned, buffed and sent to China, where the gemstones are mounted into the casting. The metallic surface of the pendant is then electroplated with rhodium and the finished pendant is cleaned, polished, packaged, and shipped to the U.S.
As described above, the process of smelting and casting the gold in Hong Kong constitutes a substantial transformation. In contrast, the mounting process and electroplating performed in China is a simple assembly operation that does not transform the gold pendant into a new or different article of commerce. In NY N271751, CBP ruled that a single “substantial transformation” occurred when the ring was cast, with all subsequent processes, including the mounting of diamonds, representing ancillary, non-substantial operations. Based on the aforementioned, the country of origin of the seahorse pendant is Hong Kong.
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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division