CLA-2-71:OT:RR:NC:N4:433
Shawn Glover
UPS Trade Management Services, Inc.
2031 S. Centennial Avenue
Aiken, SC 29803
RE: The tariff classification of necklaces and earrings, packaged together, from China.
Dear Mrs. Glover:
In your letter dated January 23, 2012, on behalf of Avon Products Inc., you requested a tariff classification ruling. Specification sheets with illustrative photos of the “Mixed Flowers Gift Set” were received.
Avon item number PP1148577 is described as the “Mixed Flowers Gift Set.” Item number PP1148577 is composed of a necklace and a pair of earrings, and is available in one of two options. Option one is the mixed flowers gift set, identified on the specification sheets as the “shiny silver 20mils / purple – necklace and earring.” Option two is the mixed flowers gift set, identified on the specification sheets, as the “shiny brass / topaz – necklace and earring.” Both options contain: 58 brass jewelry findings, 4 stamped steel leafs, 11 base metal components forming the chain (includes the extender chain), 27 plastic components resembling pearls or imitation gemstones, and 1 semiprecious gemstone identified as an agate. The base metal components far exceed that of the plastic components. For both options, illustrative photos indicate that the extender chain is removable and that the agate is attached to the extender chain on the necklace. Cost data indicates that the semiprecious gemstones are of negligible vale, and that the plastic pearls and gemstones cost less than the base metal components combined, while the plating for both options cost more than the plastic or metal components, either separately taken or aggregated together.
The Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (HTSUS), Chapter 71, heading 7116, Articles of natural or cultured pearls, precious and semi-precious stones…, state 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 partially 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). Additionally, the ENs to heading 7117, Imitation jewelry, excludes articles of jewelry containing natural or cultured pearls, and precious and semi-precious stones.
Furthermore, the ENs state in the “General Rules for the Interpretation of the Harmonized System,” Note X to Rule 3 (b), that the term “goods put up in sets for retail sale” means goods which: consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put up together to meet a particular need and carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking. For option one and option two, we find that the necklace with removable extender chain is a composite good, and as such, is classified as an entirety. In this case, both necklaces, each containing one agate, are classified as jewelry of semiprecious gemstones (heading 7116), while the two pair of earrings, having no semiprecious gemstones, are classified as imitation jewelry (heading 7117); are used together for purposes of adorning one’s self; and are packaged together for retails sales. As such, we find that option one: “shiny silver 20mils / purple – necklace and earring” and option two: the “shiny brass / topaz – necklace and earring” fall within the term goods put up in sets for retail sales. Moreover, it is the necklaces that impart the essential character to both of the jewelry sets.
As the necklaces in options one and two contain one semiprecious gemstone, the sets are not classifiable in heading 7117, HTSUS. Consequently, the sets, consisting of a necklace and earrings are classified in heading 7116, HTSUS – the provision in part for jewelry of natural and cultured pearls, and precious and semi-precious stones.
The applicable subheading for the Mixed Flowers Gift Set, available in two options, will be 7116.20.0580, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “
Articles of natural or cultured pearls, precious or semi-precious stones…: 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.
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/.
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,
Thomas J. Russo
Director
National Commodity Specialist Division