CLA-2-71:OT:RR:NC:N4:433
George Fugger
MBI, Inc.
47 Richards Avenue
Norwalk, CT 06857
RE: The tariff classification of a pendant, necklace, and bracelet from China.
Dear Mr. Fugger:
In your letter dated September 21, 2018, you requested a tariff classification ruling. Illustrative literature and item descriptions were provided.
Item 1 is identified as the “Pers Couples Heart Pendant.” The heart pendant consists of brass with 18k gold plating, measures approximately 3/4” in length x 3/4” in width, and contains a 1/4” tapered flat bail with a .005 carat diamond. An 18” cable chain with a 2” open link extender and lobster clasp secures the pendant around the neckline. The pendant can be personalized by engraving up to 2 initials and the “+” sign between each initial.
Item 2 is identified as the “Mystic Glow Magnetic-Clasp Necklace.” The necklace consists of 0.3mm stainless steel rope-double strand wire; 105 round Amethyst glass crystals ranging from 3x4mm to 7x10mm in size, and weighing 0.35 to 4.6 carats. A 4.5mm magnetic clasp secures the necklace around the neckline. Company provided information in the aggregate indicates that the weight and cost of the Amethyst glass crystal gemstones significantly exceed that of the stainless steel rope-double strand wire and magnetic clasp.
Item 3 is identified as the “Crystal Mesh Bracelet.” The bracelet consists of 8mm stainless steel mesh that holds over 400-3mm glass crystal imitation gemstones; 1-14mm pave bead surrounded by 25 to 29 Swarovski Crystals in Crystal color; 38-41 Swarovski Crystals in Capri Blue color; and 27 to 29 Swarovski Crystals in Sapphire color; 2-12mm rondels surrounded by 38 to 42 Swarovski Crystals in Crystal color; two round hollow 11.7mm to 12.1mm base metal beads; a magnetic clasp; and colored clay. Company provided information in the aggregate indicates that the quantity of the Swarovski glass crystals and glass crystals significantly exceed that of base metal components. No individual cost or weight breakdown was provided.
In consideration of the “Pers Couples Heart Pendant,” “Mystic Glow Magnetic-Clasp Necklace,” and “Crystal Mesh Bracelet” illustrative literature and descriptions provided, you are inclined to classify the items under subheading 7116.20.0500, 7117.90.9000, and 7117.19.9000 respectively.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized Tariff Schedule of the United States (HTSUS) and are generally indicative of the proper interpretation of these headings. See T.D. 89-80.
The Explanatory Note (EN) to the HTSUS, Chapter 71, heading 7116, states in pertinent part, this heading covers all articles (other than those excluded by Notes 2 (b) and 3 to this Chapter), wholly of natural or cultured pearls, precious or semi-precious stones, or consisting partly of natural or cultured pearls or precious or semi-precious stones, but not containing precious metals or metals clad with precious metal (except as minor constituents). It is the opinion of this office that item 1 “Pers Couples Heart Pendant” consisting partly of a diamond, a precious gemstone, falls within the construct of EN 7116, HTSUS.
In the United States Court of International Trade, The Home Depot, U.S.A., Inc., v. the United States, Slip Op. 06-49, Court No. 00-00061, dated April 7, 2006, the Court considered all factors in evidence to determine essential character and that these factors were to be reviewed as a whole. See Slip Op. 06-49, for a listing of factors reviewed. Consistent with The Home Depot case, this office will consider all facts as presented, assign weight to those facts, and if possible decide which of the constituent materials or components impart the essential character to the items referenced above.
Items 2 and 3 are composed of different components and constituent materials (i.e., base metals, glass, crystal, and clay) and are considered composite goods. The Explanatory Notes to the Harmonized Tariff Schedule of the United States (HTSUS), GRI 3 (b) (VIII), state: “the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good.
For item 2, the Mystic Glow Magnetic-Clasp Necklace, the visual aspects of the glass crystal
components cannot be dismissed. With emphasis placed, it is the visual surface area of the glass crystal stones collectively that contributes to the overall esthetics to the necklace. This office also observe that the glass imitation gemstones enhance the design of the necklace. Further, taking into account that a majority of the stainless steel rope – double strand is unseen, the stainless steel rope do not impart the essential character to the necklace. As such, it is the opinion of this office that size, volume, and bulk of the glass gemstones impart the essential character to the necklace.
For item 3, the Crystal Mesh Bracelet, you have suggested a classification within subheading 7117.19.9000, HTSUS, which provides for Imitation jewelry: Of base metal, whether or not plated with precious metal: Other: Other: Other. This office disagrees. The base metal components ornaments the bracelet. The over 400 glass crystals encased in the stainless steel mesh and the over 128 Swarovski glass crystals decorating the pave and rondel beads create the visual esthetic of the bracelet, not the base metal. Accordingly, it is the opinion of this office, that the quantity, volume, and bulk of the glass crystals impart the essential character to the bracelet.
The applicable subheading for item 1 the “Pers Couples Heart Pendant” containing a diamond gemstone will be 7116.20.0500, 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:.” The rate of duty will be 3.3% ad valorem.
The applicable subheading for item 2, the “Mystic Glow Magnetic-Clasp Necklace” and item 3, the “Crystal Mesh Bracelet” will be 7117.90.9000, HTSUS, which provides for “Imitation Jewelry: Other: Other: Valued over 20 cents per dozen pieces or parts: Other: Other.” The rate of duty will be 11% 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 the World Wide Web at https://hts.usitc.gov/current.
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 Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division