CLA-2-71:OT:RR:NC:N4:433
Jordan R. Graves
Purchasing Manager
Limited Treasures, Inc.
2000 Mallory Lane, Suite 130-521
Franklin, TN 37067
RE: The tariff classification of minted coins.
Dear Mr. Graves:
In your letter dated November 4, 2010, you requested a tariff classification ruling on U.S. minted coins, which you plan to export.
The subject merchandise is U.S. minted coins (state quarters, presidential dollars, national parks quarters, etc.) exported to China for inclusion onto products, such as plush bears. These items with their attached coins are then re-imported into the U.S. for sale. Further you state that these coins can be sold as sets.
You suggest that because the “coins themselves” are bought from dealers and collectors at a premium price, rather than at face value, that the coins are immediately collectors’ items over that of circulating currency, resulting in classification under 9705.00.0060 of the Harmonized Tariff Schedule of the United States (HTSUS) – the provision in pertinent part for numismatic (collector’s) coins.
In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. The ENs, although not dispositive, nor legally binding, provide a commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to heading 7118, HTSUS, in pertinent part, covers coins of any metal (including precious metal) of officially prescribed weight and design, issued under government control for use as legal tender. Further provided, the ENs for 7118 state that consignments of individual coins or of sets of coins which are legal tender in the country of issue are classified in this heading even if they are put up for general sale in presentation cases. On the other hand, the ENs to 9705, HTSUS, in pertinent part, covers coins and banknotes which are no longer legal tender, and excludes coins and medals not regarded as collectors’ pieces, nor forming a collection of numismatic interest (for example large consignments of any one coin or medal).
Information obtained on the United States Mint website, for the Presidential $1 coins, indicates that the coins were derived for purposes of fulfilling the Presidential $1 Coin Act of 2005. These coins are circulating and legal tender featuring the image of past presidents that can be used for retail transactions, vending machines, and mass transit. The state quarters, national parks quarters, and other coins of similar character & denominations are legal tender and can be used for purchasing goods and services. Accordingly, the circulating coins, whether or not put up in presentation boxes, are of legal tender status, and therefore classifiable in subheading 7118.90, HTSUS.
The applicable subheading for the circulating, legal tender coins, will be 7118.90, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Coin: Other: Other.”
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 Neil H. Levy at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division