CLA-2-71:OT:RR:NC:N4:433
Mimi Couture
Product Developer
Oak Patch Gifts
1050 Owen Loop South
Eugene, OR 97402
RE: The tariff classification of ladies earrings from Thailand and China.
Dear Ms. Couture:
In your letter dated March 2, 2011, you requested a tariff classification ruling. No samples were provided.
Style ER423-01 is described as post earrings composed of brass and plated with silver and gold, containing semiprecious gemstones. The post and nut of the earrings are made of sterling silver. Each earring features three brass flower shapes. Two flowers are plated silver; one flower is plated gold. At the center of each flower is a 1.5mm, semiprecious gemstone of Cubic Zirconium (Cubic Zirconia – CZ). This item will be imported from Thailand.
Style IN-0910-12 is described as earrings composed of silver-plated brass with semiprecious gemstones, hanging from sterling silver earwires. Each earring features a brass cross plated in silver, having a 4mm, semiprecious gemstone of Cubic Zirconium (Cubic Zirconia – CZ), hanging from a sterling silver earwire. This item will be imported from Thailand.
Style SMB855-01is described as earrings composed of painted brass, hanging from sterling silver earwires. Each earring features a painted brass shape, on top of which is a formed sterling silver wire accenting the design of the piece, hanging from a sterling silver earwire. This item will be imported from Thailand.
Style LX-0311-11 is described as earrings composed of base metal with semiprecious gemstones, hanging from base metal earwires. Each earring features four marquise-shaped, semiprecious gemstones of Cubic Zirconia (CZ), 8mm x 4mm, in a plated base metal setting, hanging from a plated base metal earwire. This item will be imported from China.
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUS is such that most goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs, 2 through 6, may then be applied in order.
For the proper classification of these four sets of earrings, one must understand Legal Note 2 (a) and (b) to Chapter 71 of the HTSUS. Legal Note 2 (a) provides that headings 7113 (in pertinent part – articles of jewelry of precious metal), 7114 (in pertinent part – articles of goldsmiths’ or silversmiths’ of precious metal) and 7115 (in pertinent part – other articles of precious metal) do not cover articles in which precious metal or metal clad with precious metal is presented as minor constituents only, such as [minor fittings] or [minor ornamentation] (for example, monograms, ferrules and rims), and paragraph (b) of the foregoing note does not apply to such articles. Legal Note 2 (b) provides that heading 7116 (in pertinent part – articles of precious and semiprecious stones; jewelry) does not cover articles containing precious metal or metal clad with precious metal (other than as minor constituents).
When interpreting and implementing the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to heading 7113, HTSUS, state in pertinent part: to fall in this heading these articles must contain precious metal or metal clad with precious metal (including base metal inlaid with precious metal) to an extent exceeding minor constituents; (thus a cigarette case of base metal with a simple monogram of gold or silver remains classified as an article of base metal). Subject to this condition the goods may also contain pearls (natural, cultured or imitation), precious or semi-precious stones (natural, synthetic or reconstructed), imitation stones, or parts of tortoise-shell, mother of pearl, ivory, amber (natural or agglomerated), jet or coral.
The ENs to heading 7116, HTSUS, state in pertinent part: this heading covers all articles (other than those excluded by Notes 2 (b) and 3 to this Chapter), wholly of precious or semi-precious, or consisting partly of precious and semi-precious stones, but not containing precious metals or metals clad with precious metals (except as minor constituents). Further delineated, the ENs to heading 7116 provide: under Note 2 (b) to this chapter the goods of this heading may contain precious metal or metal clad with precious metal as minor constituents (e.g., a pearl necklace with a gold fastener). On the other hand the heading does not cover goods (e.g., ear-rings with gold clips) in which the precious metal or metal clad with precious metal amounts to more than minor constituents (heading 7113).
Based on Legal Notes 2 (a) and (b) to Chapter 71, and an interpretation provided by the ENs to heading 7113 and 7116, we will undertake a review of each of the four sets of earrings:
Style ER423-01, although containing in each earring a 1.5mm, semiprecious gemstone of CZ, has the post and nut (per earring) made of sterling silver, thus amounting to more than minor constituents of precious metal. The post forms the structure onto which the three brass flower shapes are affixed. Accordingly, classification falls to heading 7113, HTSUS.
Style IN-0910-12, although containing in each earring a 4mm, semiprecious gemstone of CZ, has the earwire (per earring) made of sterling silver, thus amounting to more than minor constituents of precious metal. The earwire provides the structure and shape onto which a dangling cross is attached. Accordingly, classification falls to heading 7113, HTSUS.
Style SMB855-01, for each earring, has a sterling silver wire accent and an earwire made of sterling silver, thus amounting to more than minor constituents of precious metal. Accordingly, classification falls to heading 7113, HTSUS.
Style LX-0311-11, for each earring, has a base metal setting and earwire, and four marquise-shaped, 8mm x 4mm, semiprecious gemstone of CZ. It is an article of semiprecious stone, as the ENs to heading 7116, HTSUS, in pertinent part, state articles partly of precious or semi-precious stones, not containing precious metal or having precious metal to the extent of minor constituents are to be classified within this provision. Accordingly, classification falls to heading 7116, HTSUS.
The applicable subheading for Style ER423-01, Style IN-0910-12 and Style SMB855-01, will be 7113.11.5080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Article 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 silver, whether or not plated or clad with other precious metal: Other: Other; Other.” The rate of duty will be 5% ad valorem.
The applicable subheading for Style LX-0311-11, will be 7116.20.0580, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed): Of precious or semiprecious stones (natural, synthetic or reconstructed): articles of jewelry: Valued not over $40 per piece; Other.” The rate of duty will be 3.3% 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 Neil H. Levy at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division