CLA-2-71:OT:RR:NC:N4:462
Charina Kong
China Diamond Production Co., Ltd.
Unit 205, 2/F, Guardforce Centre
3 Hok Yuen Street East
Hong Kong
RE: The country of origin of a gold and diamond anniversary ring.
Dear Ms. Kong:
In your letter dated December 6, 2019, you requested a country of origin ruling. Images were provided in lieu of a sample.
The article under consideration is a round diamond anniversary ring in 18k white gold. In your letter you explain that you intend to purchase pure gold in Hong Kong and diamonds from India. You state that the gold would be cast into a ring in Hong Kong. The ring would then be shipped to China where the diamonds would be set and other finishing processes would be performed.
Pursuant to Part 134, Customs 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), Customs 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 this part.” A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Association v. United States, 628 F. Supp. 978 (Ct. Int’l Trade 1986).
In the scenario that is presented, the ring emerges as a new and different article of commerce in Hong Kong, when compared to the gold from which it was made. You state that the ring would then be shipped to China where the diamonds would be set and other finishing processes would be performed. Customs has held that mounting of a gemstone onto a ring casting is considered a simple combining operation. As such, the simple assembly operation does not substantial transform the rings into products of China. In addition, finishing operations, such as polishing, are not regarded as extensive processes that result in new and different articles.
Based on the information provided, it is evident that a substantial transformation occurs when the gold is cast into a ring in Hong Kong. Therefore, the country of origin for this gold anniversary ring would be Hong Kong.
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 Sandra Sary at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division