CLA-2-71:OT:RR:E:NC:SP:233
Mr. Chiman Muchhala
Overseas Trading Co.
11021 Treyburn Drive
Glen Allen VA 23059
RE: The tariff classification of gold jewelry from India.
Dear Mr. Muchhala:
In your letter dated November 11, 2008, you requested a tariff classification ruling.
You plan to export fine gold bars of either U.S. or Canadian origin to India to be made into jewelry. The jewelry items will include necklaces, chains, bangles and pendants. You have suggested that when imported back into the U.S., the value of the U.S. gold will not be subject to duty.
Subheading 9801.00.10, HTS, provides for the free entry of products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, provided that the documentary requirements of section 10.1, Customs Regulations (19 CFR 10.1), are met. In the instant case, the conversion of the gold bars into jewelry would be considered an advance in value and improvement in condition that occurred when the goods were processed in India. Accordingly, these goods do not qualify for preferential duty treatment under subheading 9801.00.10, as American Goods Returned. Subheading 9802.00.50, HTS, provides for the assessment of duty on the value of repairs or alterations performed on articles returned to the U.S. after having been exported for that purpose. However, the application of this tariff provision is precluded in circumstances where the operations performed abroad destroy the identity of the articles or create new or commercially different articles. Treatment under 9802.00.50, HTS, is also precluded where the exported articles are incomplete for their intended use and the foreign processing operation is a necessary step in the preparation or manufacture of finished articles. Since the gold bars will be processed into a wholly new item, this provision is not applicable upon return of the gold jewelry.
Accordingly, for purposes of valuation, the value of the gold bars will not be deducted from the full value of the finished jewelry.
The applicable subheading for the gold chain will be 7113.19.2980, 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 precious metal whether or not plated or clad with precious metal: of other precious metal, whether or not plated or clad with precious metal: other: necklaces and neck chains, of gold: other.” The rate of duty will be 5.5% ad valorem.
The applicable subheading for the gold necklaces, bangles and pendant will be 7113.19.5080, 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 precious metal whether or not plated or 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.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
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 Lawrence Mushinske at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division