CLA-2-71:OT:RR:NC:N4:462
Julian Schick
German American Chamber of Commerce, New York
80 Pine Street
New York, NY 10005
RE: The tariff classification and marking of a jewelry making kit
Dear Mr. Schick:
On October 23, 2020, you submitted a ruling request on behalf of your client, Milchfee, Alina Schmid. A sample and descriptive information were provided.
The item under consideration is a jewelry making kit. The consumer is instructed to make a pendant and earrings using breast milk. The kit contains: silver jewelry, a velvet jewelry pouch, resin, hardener, silicon molds, syringes, a dosing needle, nitril gloves, a plastic mixing cup, a wooden stirring rod, drill bits, a plastic bag, and an instruction booklet.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs), constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary of the terms presented within the Harmonized Tariff Schedule of the United States (HTSUS). The EN to Rule 3(b)(VIII) lists as factors to help determine the essential character of such goods: the nature of the materials or components, their bulk, quantity, weight or value, and the role of a constituent material in relation to the use of the goods.
This office performed a careful examination of all constituent goods presented within the subject kit, keeping in mind the information set forth in the rules above. It is the opinion of this office that, for the purposes of establishing classification, the silver jewelry imparts the essential character of the kit.
The applicable subheading for the jewelry making kit will be 7113.11.5000, 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 other precious metal: Other: Other.” The rate of duty will be 5% ad valorem.
In your request you have stated that the following items within the kit were manufactured in China: silver jewelry, jewelry pouch, drill bit, dosing needle, syringe, and one type of silicon mold. You further state that the: nitril gloves, plastic mixing cup, wooden stirring rod, drill bits, plastic bag, and the instruction booklet were manufactured in Germany. Lastly, you state that a second type of silicon mold was manufactured in Ukraine.
Guidance in a situation where sets packaged for retail sale are involved is provided on the CBP website in “CBP Section 301 Trade Remedies Frequently Asked Questions”. The answer to “How are the Section 301 duties assessed in respect to sets packaged for retail sale, which contain components covered by the Section 301 remedy,” reads, in pertinent part, as follows:
When importing goods put up in sets for retail sale (in accordance with General Rule of Interpretation 3) that contain articles subject to the Section 301 remedy, if the product that imparts the essential character to the set (i.e. the HTSUS provision under which the entire set is classified) is covered by the Section 301 remedy, then the entire set will be subject to the additional duties.
If the HTSUS provision under which the entire set is classified is not covered by the Section 301 remedies, but the set contains components that are classified in a subheading covered by the 301 lists, the 301 duties will not be assessed on the individual components.
As previously noted, the silver jewelry imparts the essential character of the kit. As this item is a product of China, then Section 301 trade remedies apply. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings, 7113.11.5000, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheadings 7113.11.5000, HTSUS listed above.
Country of origin is defined 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 19 CFR 134.
Considering this, we find that the packaging of the kit in Germany does not substantially transform the individual components and the origin of all items within the kit must be identified. As such, all components in the kit must be individually marked with their country of origin provided such marking is visible through the retail packaging, or the packaging must identify the origin of each of these items.
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, please contact National Import Specialist Sandra Sary at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division