CLA-2-71:OT:RR:NC:N4:433
Ms. Susan Byrne
Tiffany & Company
15 Sylvan Way
Parsippany, NJ 07054
RE: The tariff classification and marking of a resin heart shaped pendant on an acrylic cord assembled in the United States.
Dear Ms. Byrne:
In your letter dated April 9, 2009, you requested a country of origin ruling on a resin pendant on an acrylic cord assembled in the United States. For purposes of this ruling, the classification of the item will be ruled upon too. We are returning your sample.
The item is described as a “resin pendant on acrylic cord” with the components assembled in the United States. The acrylic cord is made in Japan and imported to the U.S. on spools at a cost of $.35/per piece; the resin heart is fabricated in Thailand and imported to the U.S. at a cost of $1.90 per piece; the spring ring, tag, jump ring and end-caps are fabricated and polished in the U.S. at a cost of $4.62 per piece; the sterling silver design is fabricated and attached to the resin pendant in the U.S. at a cost of $6.82. It is stated that the cord is cut to size and assembled with components in the U.S. at a cost of $1.09 per piece and the pendant is strung onto the cord in the U.S. at a cost of $.47 per piece.
Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) shall be governed by the General Rules of Interpretation (GRIs): GRI 1-6 in hierarchical order. GRI-1 provides that “the table of contents, alphabetical index, and titles of sections, chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, according to the following provisions:”
Legal Note 11 to Chapter 71 of the HTSUS provides in pertinent part, that the expression “imitation jewelry” means any small articles of personal adornment for example rings, bracelets, necklaces, brooches, earrings pendants, pins, and the like – not incorporating precious metal or metal clad with precious metal, except as minor constituents. We find that the sterling silver design attached to the pendant to be more than minor constituents, and therefore the assembled necklace is classified as an article of silver in HTSUS heading 7113.
The applicable subheading for the resin heart shaped pendant on an acrylic cord with sterling silver design 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 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/.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article – see 19 CFR 134.11.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35.
In this case, the resin heart shaped pendant from Thailand is not substantially transformed as a result of the U.S. processing and assembly into the completed necklace. The country of origin for the resin heart shaped pendant on an acrylic cord with sterling silver design is Thailand.
Accordingly, the necklace has to be marked so that the ultimate purchaser can discern the county of origin of the item. In its assembled condition the completed necklace should be marked: made in Thailand, manufactured in Thailand, product of Thailand or other words of similar meaning.
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,
Robert B. Swierupski
Director
National Commodity Specialist Division