CLA-2:CO:R:C:G 086375 SR
Mr. Eric C. Braunwart
American Gem Trade Association
181 World Trade Center
2050 Stemmons Expressway
Dallas, TX 75207
RE: Gem stones
Dear Mr. Braunwart:
This is in reference to your letter dated January 19, 1990,
requesting the tariff classification of certain gemstones under
the Harmonized Tariff Schedule of the United States Annotated
(HTSUSA). The gemstones will be imported from various countries.
FACTS:
The merchandise at issue consists of two form of gemstones.
One is semiprecious stone bead necklaces that are imported
temporarily strung. The other is "rough" precious and
semiprecious stones that have been trimmed or rough-sawn, but not
cut, faceted, polished and not suitable for use in the
manufacture of jewelry without further fabrication.
ISSUE:
ISSUE 1
What is the classification of semiprecious stone bead
necklaces that are imported temporarily strung?
ISSUE 2
What is the classification of rough precious and
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semiprecious stones that have been trimmed or rough-sawn, but not
cut, faceted, polished and not suitable for use in the
manufacture of jewelry without further fabrication?
LAW AND ANALYSIS:
ISSUE 1
Under the Tariff Schedules of the United States (TSUS), the
rate of duty applicable to semiprecious stone beads was 2.1
percent ad valorem, whether they were imported loose or
temporarily strung and whether the stones were graded or
ungraded. The HTSUSA became effective on January 1, 1989. Under
heading 7103, HTSUSA, loose semiprecious stones and ungraded
semiprecious stone bead necklaces temporarily strung for
convenience of transport remain dutiable at the rate of
2.1 percent ad valorem. However, the temporarily-strung
semiprecious stone bead necklaces with which you are concerned,
are strands of graded semiprecious stone beads. These graded
beads are not provided for under heading 7103, HTSUSA.
The Explanatory Notes provide the official interpretation of
the tariff at the international level. The Explanatory Notes to
heading 7103, HTSUSA, state that the stones of this heading may
be strung for the convenience of transport, provided this method
of assembly is temporary and the stones have not been graded and
are not directly suitable for use as jewelry. In Headquarters
Ruling Letter (HRL) 086104, dated December, 14, 1989, graded
semiprecious stone necklaces, temporarily strung, were classified
under subheading 7116.20.2000, HTSUSA, and dutiable at the rate
of 21 percent ad valorem. The issue concerning the tariff
classification of graded semiprecious stones that are strung
temporarily for the convenience of transport, is currently
pending before Congress. Articles of semiprecious stones are
covered by Item 202, Section 10517 of H.R. 3150.
ISSUE 2
The other merchandise at issue consists of "rough" (uncut)
precious and semiprecious gemstones that have been trimmed or
rough-sawn, but not cut, faceted or polished and not suitable for
use in jewelry without further fashioning. Under the TSUS,
"rough" and semiprecious gemstones that were imported in
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rough-sawn or roughly shaped condition were free of duty. Under
the HTSUSA, "rough" precious and semiprecious stones that are
unworked remain free of duty under subheading 7103.10.2000,
HTSUSA. However, "rough" gemstones that have been trimmed or
rough-sawn cannot be classified under this provision. They are
classifiable under subheading 7103.10.4000, HTSUSA, which
provides for precious and semiprecious stones that are other than
unworked. They are dutiable at 21 percent ad valorem.
HOLDING:
ISSUE 1
Semiprecious stone bead necklaces that are imported
temporarily strung are classifiable under subheading
7116.20.2000, HTSUSA, which provides for articles of precious or
semiprecious stones (natural, synthetic or reconstructed): of
precious or semiprecious stones, other, of semiprecious stones.
The rate of duty is 21 percent ad valorem under the General Duty
Rate column.
ISSUE 2
The merchandise at issue that consists of rough precious and
semiprecious stones that have been trimmed or rough-sawn, but not
cut, faceted, polished and not suitable for use in the
manufacture of jewelry without further fabrication, are
classifiable under subheading 7103.10.4000, HTSUSA, which
provides for precious and semiprecious stones, that are other
than unworked. The rate of duty is 21 percent ad valorem under
the General Duty Rate column.
The U.S. Customs Service is an administrative agency,
and as such has no authority to make any changes in or grant any
waiver of the provisions of the tariff schedule. If you wish to
further pursue this issue, you can contact the office of the
United States Trade Representative at 600 17th Street, N.W.,
Washington, D.C. 20506.
Sincerely,
John Durant, Director
Commercial Rulings Division
6 cc A.D. New York Seaport
1 cc Durant
1 cc legal reference