CLA-2-71:OT:RR:NC:N4:462
David M. Murphy GDLSK 599 Lexington Avenue, 36th floor New York, NY 10022 RE: The classification, country of origin, and marking of a gold, diamond, and gemstone ring Dear Mr. Murphy: In your letter dated February 27, 2025, you requested a classification, country of origin, and marking ruling on behalf of your client, Effy & Co., Inc. The merchandise under consideration is a gold ring set with diamonds and gemstone. In your letter, you state that the gold ring will be cast in the United States (“U.S.”). The diamonds and gems are acquired from and cut and polished in India or Ethiopia. The ring casting is sent to China where it undergoes cleaning and polishing, stone setting and final adjustments, and packaging before being sent back to the U.S. The applicable subheading for the gold, diamond, and gemstone ring will be 7113.19.5090, 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 other precious metal, whether or not plated or clad with precious metal: Other: Other.” The rate of duty will be 5.5% ad valorem. Your request also concerns the eligibility of the finished ring under 9802.00.5060, HTSUS. Subheading 9802.00.5060, HTSUS, provides a partial or complete duty exemption for articles returned to the U.S. after having been exported to be advanced in value or improved in condition by any process of manufacture or other means, provided that the documentary requirements of Section 10, Customs Regulations (19 CFR 10.8) are satisfied. Pursuant to 19 CFR 10.8, the importer must submit a declaration executed by the person who performed the repairs or alterations and a declaration of his own containing various attestations. Articles eligible under subheading 9802.00.5060 are subject to a duty upon the value of the repairs, alterations, processing, or otherwise changes in condition abroad, pursuant to Note 3 to Subchapter II, Chapter 98, HTSUS.
We find the described foreign processing acceptable for the purposes of 9802.00.5060, HTSUS. Accordingly, upon reimportation, the gold, diamond, and gemstone ring will be eligible for tariff treatment under 9802.00.5060, HTSUS, provided the documentary requirements of 19 CFR 10.8 are satisfied. When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (?HQ?) H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc. v. U.S., 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. U.S., 16 C.I.T. 308 (1992), aff?d, 989 F.2d 1201 (Fed. Cir. 1993). You propose that the country of origin of this ring is the U.S. We agree. The casting of the ring in the U.S. provides the essence of the finished product. The finishing and setting of stones in China do not substantially transform the casting. As a result, the country of origin of the ring is the U.S. The marking statute, section 304, Tariff Act of 1930, as amended (19 USC 1304), provides that, unless excepted, every article of foreign origin (or its container) 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. Since the country of origin, for marking purposes, of the subject imported merchandise will be the U.S., it will be excepted from the country of origin marking requirements. Whether an article may be marked with the phrase ?Made in the USA? or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the USA. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 CFR 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, please contact National Import Specialist Sandra Sary at [email protected].
Sincerely,
Steven A. Mack Director National Commodity Specialist Division