CLA-2-71:OT:RR:NC:N4:433
Debra A. Aillet
Customs Compliance Analyst
Tiffany & Co.
15 Sylvan Way
Parsippany, NJ 07054
RE: The tariff classification of four pendant necklaces and a pair of earrings assembled in Spain, and the country of origin of those five jewelry pieces.
Dear Ms. Aillet:
In your letter dated April 4, 2013, you requested a tariff classification and country of origin ruling. For the five jewelry pieces (merchandise concerned) illustrative literature and material breakdown spreadsheets were provided. The material breakdown spreadsheets for the necklaces indicate that the semiprecious stones including their carvings (pendants) are country of origin China, while the precious metal chains are country of origin Spain. For the earrings, the material breakdown spreadsheet indicates that the semiprecious stones including their carvings (pendants) are country of origin China, while the precious metal wires with bezels are of country of origin Spain.
Document # 32713.30793927 is described as a sterling silver round 13 mm hematite pendant. Illustrative literature indicates a rounded, carved hematite pendant, connected to a 16-inch sterling silver chain. At the top part of the pendant there is a sterling silver tube insert.
Document # 32713.30793803 is described as a sterling silver mini rock crystal toy pendant. Illustrative literature indicates a carved rock crystal pendant, connected to a 16-inch sterling silver chain.
Document # 32713.30793781 is described as a sterling silver large apple black jade pendant. Illustrative literature indicates a carved black jade pendant in the shape of a large apple, having an upper centered sterling silver insert, connected to a 30-inch sterling silver chain.
Document # 32713.30793846 is described as a sterling silver mini black jade jug pendant. Illustrative literature indicates a carved black jade pendant in the shape of a jug, having a sterling silver wire wrapped around the upper part of the jug, connected to an 18-inch sterling silver chain.
Document # 32713.30793889 is described as sterling silver round 13 mm hematite diamond earrings. Illustrative literature indicates a pair of rounded, carved hematite earrings, having an upper centered singular diamond per earring. Each pendant is connected to the earring by a white gold wire with a loop. At the end of the loop there is a sterling silver decorative bezel in the shape of a ball.
The merchandise concerned is classified in accordance with the General Rules of Interpretation (GRIs) to the Harmonized Tariff Schedule of the United States (HTSUS), at GRI 1, by the terms of the headings and any relative section and chapter notes. Legal Note 2 (b) to Chapter 71 of the HTSUS, states: Heading 7116 does not cover articles containing precious metal or metal clad with precious metal (other than as minor constituents). Upon review of the illustrative literature and material breakdown spreadsheets, the merchandise concerned contains precious metals in amounts exceeding minor constituents.
The applicable subheading for the merchandise concerned will be 7113.11.5080, 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 silver, whether or not plated or clad with other precious metal: Other: Other; Other.” The rate of duty will be 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/.
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304), provides that unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. § 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. § 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b), CBP Regulations (19 C.F.R. § 134.1(b)), defines “country of origin” as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the country of origin within the meaning of [the marking laws and regulations].” A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See Texas Instruments, Inc. v. United States, 69 C.C.P.A. 142, 681 F.2d 778 (1982).
The following analysis is for marking purposes only. We believe that the essential character of pendant necklaces and earrings is imparted by their pendants, in that, the titles of the jewelry pieces contain the name of the semiprecious stones and identifies them as pendants, with the exception of the earrings that contain the name of the semiprecious stones, but are not identified as pendants; the semiprecious stones either exceed the cost or are appreciable in cost as compared to the cost of the precious metal; and more importantly, it is the carved semiprecious stones that make each of the jewelry pieces alluringly appealing. Even though the title of the earrings does not contain the word pendant, they are recognized in the trade as pendant earrings.
There appears to be no substantial workings or further manufacture of the pendants beyond that of assembling the precious metal chains or wires with bezels to the pendants. It is our opinion that no substantial transformation occurs of Chinese origin semiprecious stone pendants by the addition of Spanish origin precious metal chains to form pendant necklaces. Further it is our opinion that no substantial transformation occurs of Chinese origin semiprecious stone pendants by the addition of Spanish origin wires with bezels to form pendant earrings. For the pendant necklaces and pendant earrings, the country of origin is China.
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,
Thomas J. Russo
Director
National Commodity Specialist Division