The tariff classification of 14K gold chain necklaces,earrings, rings, bracelets and pendants from Yugoslavia.

NY 875238 June 24, 1992 CLA-2-:71:S:N:N3G:344 875238 CATEGORY: Classification TARIFF NO.: 7113.19.21; 7113.19.25; 7113.19.29; 7113.19.50 Mr. Branislav Krtinic Impex Overseas Corporation 350 Fifth Avenue - 22nd Floor New York, N. Y. 10118 RE: The tariff classification of 14K gold chain necklaces, earrings, rings, bracelets and pendants from Yugoslavia. Dear Mr. Krtinic: In your letter of June 3, 1992, you requested a tariff classification ruling on certain 14K gold jewelry articles. You have indicated in your letter that you purchase gold bullion from an American bank and send it to Yugoslavia where it is melted down and alloyed with copper and silver and made into chains, earrings, rings, bracelets and pendants. You ask if you are required to pay duty on these 14K gold jewelry articles upon importation into the United States, inasmuch as you already own the gold. Subheading 9802.00.80, Harmonized Tariff Schedule of the United States, provides for articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating, painting. Duty would be upon the full value of the imported article, less the cost or value of such products of the United States. In order to meet the requirements under subheading 9802.00.80, HTS, a product would have to be merely assembled abroad from American-made components and not substantially transformed into a new and different article. A substantial transformation occurs when, as a result of manufacturing processes, a new and different article emerges, having a distinctive name, character, or use, which is different from that originally possessed by the article or material before being subject to the manufacturing process. In your situation, the processing of gold bullion from the U. S. into 14K gold jewelry in Yugoslavia would constitute a substantial transformation. The gold jewelry would be products wholly of Yugoslavia and ineligible for entry under Subheading 9802.00.80, HTS. The applicable subheading for the 14K gold necklaces and neck chains, if of rope, will be 7113.19.21, Harmonized Tariff Schedule of the United States (HTS), which provides for necklaces and neck chains, of gold, rope. The rate of duty will be 6.5.% ad valorem. The applicable subheading for the 14K gold necklaces and neck chains if of mixed link will be 7113.19.25, HTS, which provides for necklaces and neck chains, of gold, mixed link. The rate of duty will be 6.5% ad valorem. The applicable subheading for the 14K gold necklaces and neck chains if other than rope or mixed link will be 7113.19.29, HTS, which provides for necklaces and neck chains of gold, other. The rate of duty will be 6.5% ad valorem. The applicable subheading for the 14K gold earrings, bracelets, rings or pendants will be 7113.19.50, HTS, other. The rate of duty will be 6.5% ad valorem. We would also refer you to Federal Register Vol. 57, No. 107 dated June 3, 1992, concerning the country of origin marking requirements for the former Yugoslav Republics. This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, Jean F. Maguire Area Director New York Seaport