CLA-2-71:OT:RR:NC:N4 462
Charles Newton
Descartes Visual Compliance (USA) LLC
2030 Powers Ferry Rd SE Suite 350 Atlanta, GA 14213
RE: The tariff classification of silver and cubic zirconia earrings from Thailand
Dear Mr. Newton:
In your letter dated October 25, 2024, you requested a tariff classification ruling. Photos and product descriptions were submitted for review. The items under consideration are listed below.
Style 38542-7 includes three pairs of earrings: two pairs of stud earrings with cubic zirconia stones set in sterling silver (base and post), and one pair of hoop earrings made entirely of sterling silver.
Style 65748 is a pair of earrings made of sterling silver and cubic zirconia stones. The earrings are in the shape of bows, with cubic zirconia stones adorning the bow design.
Style 30801-5 is a pair of earrings crafted from sterling silver and designed in the shape of turtles. Each earring features cubic zirconia stones as the centerpiece of the turtle design.
Style 04522 is a pair of stud earrings featuring cubic zirconia stones set in sterling silver, with a sterling silver base and post.
Style 04147 consists of six pairs of stud earrings, each with varying sizes of cubic zirconia stones. Every pair is designed with cubic zirconia stones set in sterling silver.
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUS is such that most goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs, 2 through 6, may then be applied in order.
For the proper classification of these earrings, one must understand Legal Note 2 (a) and (b) to Chapter 71 of the HTSUS. Legal Note 2 (a) provides that headings 7113 (in pertinent part – articles of jewelry of precious metal), 7114 (in pertinent part – articles of goldsmiths’ or silversmiths’ of precious metal) and 7115 (in pertinent part – other articles of precious metal) do not cover articles in which precious metal or metal clad with precious metal is presented as minor constituents only, such as [minor fittings] or [minor ornamentation] (for example, monograms, ferrules and rims), and paragraph (b) of the foregoing note does not apply to such articles. Legal Note 2 (b) provides that heading 7116 (in pertinent part – articles of precious and semiprecious stones; jewelry) does not cover articles containing precious metal or metal clad with precious metal (other than as minor constituents).
When interpreting and implementing the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs to heading 7113, HTSUS, state in pertinent part: to fall in this heading these articles must contain precious metal or metal clad with precious metal (including base metal inlaid with precious metal) to an extent exceeding minor constituents; (thus a cigarette case of base metal with a simple monogram of gold or silver remains classified as an article of base metal). Subject to this condition the goods may also contain pearls (natural, cultured or imitation), precious or semi-precious stones (natural, synthetic or reconstructed), imitation stones, or parts of tortoise-shell, mother of pearl, ivory, amber (natural or agglomerated), jet or coral.
The ENs to heading 7116, HTSUS, state in pertinent part: this heading covers all articles (other than those excluded by Notes 2 (b) and 3 to this Chapter), wholly of precious or semi-precious, or consisting partly of precious and semi-precious stones, but not containing precious metals or metals clad with precious metals (except as minor constituents). Further delineated, the ENs to heading 7116 provide: under Note 2 (b) to this chapter the goods of this heading may contain precious metal or metal clad with precious metal as minor constituents (e.g., a pearl necklace with a gold fastener). On the other hand the heading does not cover goods (e.g., ear-rings with gold clips) in which the precious metal or metal clad with precious metal amounts to more than minor constituents (heading 7113).
Since the structure of the earrings containing cubic zirconia stones is provided by the sterling silver onto which the stones are affixed, this amounts to more than minor constituents of precious metal. Accordingly, classification falls to heading 7113, HTSUS.
The applicable subheading for all of the earring listed above will be 7113.11.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Article 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: Valued not over $18 per dozen pieces or parts; Other.” The rate of duty will be 13.5% 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 at https://hts.usitc.gov/.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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