CLA-2-71:OT:RR:NC:N4:433
Andrea Holtan
Senior Manager, Trade Compliance
Blue Nile, LLC
411 First Avenue South
Seattle, WA 98104
RE: The tariff classification of a pair of earrings from Canada.
Dear Ms. Holtan:
In your letter dated November 19, 2015, you requested a tariff classification ruling. Two photographs were provided.
The merchandise at issue is a pair of “Sapphire and Freshwater Cultured Pearl Halo Stud Earrings.” Each studded earring and its back is set in 14-karat white gold and plated in rhodium, and has a single large size, pearl surrounded by sixteen blue sapphires.
Legal Note 2 (a) to Chapter 71 of the Harmonized Tariff Schedule of the United States (HTSUS) provides: 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), and paragraph (b) of the foregoing note does not apply to such articles. Legal Note 2 (b) provides that heading 7116 does not cover articles containing precious metal or metal clad with precious metal (other than as minor constituents).
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). Still, further evidence of the meaning of minor constituents can be found in the ENs to heading 7116, HTSUS, which provides in pertinent part, that the goods of heading 7116 may contain precious metal or metal clad with precious metal as minor constituents (e.g., a pearl necklace with a gold fastener).
We do not find the 14-karat white gold studded casting to be of minor constituents, as the casting is required for purposes of setting the pearl and sapphires. Further, without the studded casting the earring cannot be worn on the body. Accordingly, the pair of Sapphire and Freshwater Cultured Pearl Halo Stud Earrings is classifiable in heading 7113 of the HTSUS.
The applicable subheading for the Sapphire and Freshwater Cultured Pearl Halo Stud Earrings will be 7113.19.5085, 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: 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 TSUS 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 [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division