CLA-2 OT:RR:CTF:TCM H173035 LWF
Mr. David E. Horton, III
Treasures from the Prophet
3515 Tullamore Road
University Heights, Ohio 44118
RE: Modification of New York Ruling Letter (NY) N018792; Admissibility of jewelry set with tumbled diamonds from the Republic of Zambia
Dear Mr. Horton:
This modification is in reference to New York Ruling Letter (“NY”) N018792, dated November 8, 2007, issued to you concerning the tariff classification of loose tumbled diamonds, jewelry set with tumbled diamonds, loose cut and polished diamonds, and jewelry set with cut and polished diamonds. All articles were from the Republic of Zambia (Zambia). In NY N018792, U.S. Customs and Border Protection (CBP) stated that jewelry set with tumbled diamonds from Zambia will not be allowed into the United States because tumbled diamonds are considered rough and Zambia is not a member of the Kimberley Process Certification Scheme (“KPCS”). We have reviewed NY N018792 and find the ruling letter to be partially in error. For the reasons set forth below, we hereby modify NY N018792.
This modification applies only to the admissibility of the jewelry set with tumbled diamonds from Zambia. The classifications contained in NY N018792 of cut and polished loose diamonds under heading 7102, Harmonized Tariff Schedule of the United States (HTSUS), and the classifications of jewelry set with cut and polished diamonds under headings 7113 and 7116, HTSUS, remain unmodified. We also emphasize that, as stated in NY N018792, because tumbled diamonds are considered rough and Zambia is not a member of the KPCS, loose tumbled diamonds from Zambia are not admissible into the United States.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to modify NY N018792 was published on March 21, 2012, in Volume 46, Number 13, of the Customs Bulletin. CBP received no comments in response to this notice.
FACTS:
In your letter, dated October 20, 2007, you stated that you intended to import certain articles, including loose tumbled diamonds from Zambia, as well as jewelry set with tumbled diamonds from Zambia. You indicated that the jewelry would consist of silver, gold, or copper and that it would be set with tumbled diamonds. While you stated that each piece of jewelry would be valued at over $40, you did not provide a carat weight of the tumbled diamonds which would be set in the jewelry.
NY N018792 states as follows:
Tumbled diamonds are not considered “worked,” but still in their “rough” state. A diamond that has been tumbled is where the surface has been rendered glossy and shiny by chemical treatment, also known as chemical polishing. Chemical polishing is different from traditional abrasive polishing in that the diamonds are not mounted individually and polished on a polishing wheel, but are loaded, in bulk, into a chemical reactor.
ISSUE:
Is silver, gold, or copper jewelry set with tumbled diamonds from Zambia admissible into the United States?
LAW AND ANALYSIS:
The U.S. Clean Diamond Trade Act of 2003 (“CDTA”), (Pub. L. 108-19, 117 Stat. 631), concerns efforts by the United States to curb the use of funds derived from the sale of rough diamonds by state actors and rebels to finance military activities and subvert international efforts to promote peace and stability. Section 4 of the CDTA (19 U.S.C. § 3903(a)) prohibits the importation into, or exportation from, the United States of any rough diamond, from whatever source, that has not been controlled through the Kimberley Process Certification Scheme. See Treasury Regulations section 592 (31 C.F.R § 592). “Rough diamond” is defined in 19 U.S.C. § 3902(9) and 31 C.F.R. § 592.310 as meaning “any diamond that is unworked or simply sawn, cleaved, or bruted and classifiable under subheading 7102.10, 7102.21, or 7102.31 of the Harmonized Tariff Schedule of the United States.”
The HTSUS provisions referenced in 19 U.S.C. § 3902 are the following:
7102: Diamonds, whether or not worked, but not mounted or set:
7102.10: Unsorted…
7102.21: Industrial:
Unworked or simply sawn, cleaved or bruted:
7102.31: Nonindustrial:
Unworked or simply sawn, cleaved or bruted:
* * * * *
Based on the CDTA definition of “rough diamond,” we find that the jewelry at issue is admissible into the United States and is not subject to Kimberley Process Certification Scheme requirements. The CDTA restricts the import of rough diamonds into the United States. The term “rough diamond” is defined in section 19 U.S.C. § 3902(9) as meaning any diamond that is unworked or simply sawn, cleaved, or bruted and classifiable under subheading 7102.10, 7102.21, or 7102.31, HTSUS. 31 C.F.R. § 592.310. Heading 7102, HTSUS, provides for “diamonds, whether or not worked, but not mounted or set” (emphasis added). By contrast, the instant merchandise consists of gold, silver, or copper jewelry set with tumbled diamonds from Zambia. Therefore, it is not classified in heading 7102, HTSUS. Because the merchandise is not classified in heading 7102, HTSUS, it is not considered a “rough diamond” under the CDTA. Consequently, the jewelry set with tumbled diamonds from Zambia is not subject to Kimberley Process Certification Scheme requirements and are not prohibited from import under the U.S. Clean Diamond Trade Act.
This modification applies only to the admissibility of jewelry set with tumbled diamonds from Zambia.
HOLDING:
As gold, silver, or copper jewelry set with tumbled diamonds is not classified in heading 7102, HTSUS, the tumbled diamonds do not fall within the U.S. Clean Diamond Trade Act’s definition of a “rough diamond.” The jewelry is admissible into the United States under the terms of the CDTA.
Note, however, that rough diamonds from Zambia classified in subheadings 7102.10, 7102.21, or 7102.31, HTSUS, would not be admissible to the United States.
EFFECT ON OTHER RULINGS:
In accordance with the above analysis, NY N018792, dated November 8, 2007, is hereby MODIFIED.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial Trade and Facilitation Division