CLA-2-71:OT:RR:NC:N4:433

Susanne Michelle Ray
Jewellery Designer and Maker
Figbird Design
155 The Cove Road
Hallett Cove, South Australia 5158
Australia

RE: The tariff classification of a necklace and pair of earrings from Australia.

Dear Mrs. Ray:

In your letter dated September 8, 2014, you requested a tariff classification ruling. Illustrative literature was provided.

Item 1 is a pendant necklace. The item consists of a sterling silver beaded chain onto which three, acrylic, flora-shaped pendants are connected.

Item 2 is a pair of brass earrings with gold-fill 14/20 earwires. Each earring consists of a brass shaped ornament onto an earwire. Gold-filled, also known as “rolled gold” or “rolled gold plate” is a process of bonding (cladding) a solid layer of gold by means of heat and pressure to a base metal, such as brass. It is unclear from the description, whether the earwires are gold-filled only or both the earwires and their ornaments together are gold-filled. It is also unclear whether or not the cladding is on a single side or double side or all around the earrings.

Legal Note 2 (a) to Chapter 71 of the Harmonized Tariff Schedule of the United States (HTSUS) provides in pertinent part that “Headings 7113, 7114, 7115 do not cover articles in which precious metal or metal clad with precious metal is present as minor constituents only, such as minor fittings or minor ornamentation (for example, monograms, ferrules and rims). Further, the Explanatory Notes (ENs), which constitute the official interpretation of the Harmonized Tariff Schedule at the international level, for Chapter 71, heading 7113 “Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal,” provide in pertinent part, that to fall within heading 7113 – 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). With case in point, we do not find that the sterling silver beaded chain to be of minor constituents as the chain is needed for the necklace to be worn, and the same holds true for the earrings in that the earwires are needed for the earrings to be worn. As such, both items are classified within heading 7113 of the HTSUS.

The applicable subheading for the “sterling silver bead chain pendant necklace” will be 7113.11.5000, 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. The applicable subheading for the “pair of brass earrings with gold-fill 14/20 earwires,” regardless of ear-wires only or both ear-wires and their ornaments are gold-filled, will be 7113.20.5000, 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 base metal clad with precious metal: Other: Other.” The rate of duty will be 5.2% 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/.

General Note 28, HTSUS, institutes the United States-Australia Free Trade Agreement Implementation Act. In relevant parts to this ruling at hand, GN 28 provides:

(a) Originating goods under the terms of the United States-Australia Free Trade Agreement (UAFTA) are subject to duty as provided for herein. For the purposes of this note, goods of Australia, as defined in subdivisions (b) through (n) of this note, that are imported into the customs territory of the United States and entered under a provision for which a rate of duty appears in the “Special” subcolumn of column 1 followed by the symbol “AU” in parentheses are eligible for the tariff treatment and quantitative limitations set forth in the “Special” subcolumn, in accordance with sections 201 through 203, inclusive, of the United States-Australia Free Trade Agreement Implementation Act (Pub.L. 108-286; 118 Stat. 919). For the purposes of this note, the term “UAFTA country” refers only to Australia or to the United States.

(b) For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UAFTA country under the terms of this note only if - -

(i) the good is a good wholly obtained or produced entirely in the territory of Australia or of the United States, or both;

(ii) the good was produced entirely in the territory of Australia or of the United States, or both, and—

(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note;

(B) the good otherwise satisfies any applicable regional value content requirement referred to in subdivision (n) of this note; or

(C) the good meets any other requirements specified in subdivision (n) of this note; and such good satisfies all other applicable requirements of this note;

(iii) the good was produced entirely in the territory of Australia or of the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note; or

(iv) the good otherwise qualifies as an originating good under this note.

(e) De minimis.

(i) Except as provided in subdivision (e)(ii) below, a good (other than a textile or apparel good described in subdivision (d) above) that does not undergo a change in tariff classification pursuant to subdivision (n) of this note shall nonetheless be considered to be an originating good if–

(A) the value of all nonoriginating materials that are used in the production of the good, and do not undergo the applicable change in tariff classification, does not exceed 10 percent of the adjusted value of the good;

(B) the value of such nonoriginating materials is included in calculating the value of nonoriginating materials for any applicable regional value content requirement for the good; and

(C) the good meets all other applicable requirements of this note.

(n) Change in tariff classification rules.

Chapter 71.

6. A change to headings 7113 through 7117 from any other heading, except from headings 7113 through 7118.

For the sterling silver beaded chain pendant necklace there is a lack of supporting records and/or contradicting records, for example: (1) manufacturer’s declarations attesting that the sterling silver beaded chain was manufactured in said country, at said location, under the following process description, with bill of materials to include description of component parts, quantity of component parts used, unit cost of each part, extended cost of each part and country of origin of those parts, and (2) the sterling silver end caps claimed to be of Australian origin are said in an E-mail from A&E Metal to you that they are from the United States; note: purchases and sales, even from the United States, do not confirm whether or not goods are manufactured in the United States versus bought from abroad. Further, the sterling silver spring rings of Italian origin do not meet the tariff shift rule of origin, specified above, as they are classified in the same heading, 7113, as the finished pendant necklace; nevertheless those spring rings could fall under the de minimis rule, not exceeding 10% of the adjusted value, under GN 28 (e) upon proper supporting documentation.

For the pair of brass earrings with gold-fill 14/20 ear wires there is a lack of supporting records, for example: manufacturer’s declarations attesting that the brass sheets and round wires were manufactured in said country, at said location, under the following process description, with bill of materials to include description of component parts, quantity of component parts used, unit cost of each part, extended cost of each part and country of origin of those parts, and (2): manufacturer’s declarations attesting to the cutting and pressing of the earring ornaments and the assembly of those ornaments to the ear-wires at said country, at said location, under the following process description, with bill of materials to include description of component parts, quantity of component parts used, unit cost of each part, extended cost of each part and country of origin of those parts,

A review of the furnished documentation with this ruling request indicates insufficient records, as well as contradicting records, in which to properly analyze the pendant necklace and pair of earrings for eligibility under the UAFTA. Consequently, at this time, we are unable to rule on the eligibility of the UAFTA and its preferential duty treatment for the pendant necklace and pair of earrings.

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 E-mail Address: [email protected].

Sincerely,

Gwenn Klein Kirschner
Director
National Commodity Specialist Division