Imitation jewelry; earrings and bracelets; leather boxes; Legal Note 10 to Chapter 71; Legal Note 8 to Chapter 71

HQ 951580 August 5, 1992 CLA-2 CO:R:C:M 951580 NLP CATEGORY: Classification TARIFF NO.: 4202.91.00; 7117.19.50 Mr. David Rich Global Riches, Inc. 42 Bartlett Street Somerville, MA 02145 RE: Imitation jewelry; earrings and bracelets; leather boxes; Legal Note 10 to Chapter 71; Legal Note 8 to Chapter 71 Dear Mr. Rich: This is in response to your letter dated April 13, 1992, requesting the tariff classification of costume jewelry and leather boxes under the Harmonized Tariff Schedule of the United States (HTSUS). FACTS: The first articles at issue are earrings and bracelets made from Soviet coins. The wire used for the earrings and the connecting loops used for the bracelets are made from surgical steel. The coins are composed of various base metals. The second group of articles at issue are leather boxes which are approximately six to eight inches in diameter. The boxes have covers and some are padded beneath the leather. Both the jewelry and the leather boxes will be made in and imported from Latvia. ISSUE: What is the tariff classification of earrings and bracelets made out of Soviet coins? What is the tariff classification of the leather boxes? LAW AND ANALYSIS: The classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings 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 GRI's may be applied, taken in order. Heading 7117, HTSUS, provides for imitation jewelry. Legal Note 10 to Chapter 71, HTSUS, states that: For the purposes of heading 7117, the expression "imitation jewelry" means articles of jewelry within the meaning of paragraph (a) of note 8 above..., not incorporating natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed) nor (except as plating or as minor constituents) precious metal or metal clad with precious metal. Legal Note 8 to Chapter 71, HTSUS, defines "articles of jewelry" as follows: "Any small objects of personal adornment (gem-set or not) (for example, rings, bracelets, necklaces, brooches, earrings, watch chains, fobs, pendants, tie pins, cuff links, dress studs, religious or other medals and insignia)...." The subject earrings and bracelets are considered articles of jewelry and would be classifiable in Heading 7117, HTSUS. As the articles of jewelry are made out of coins, which are made of base metal, they would be classified in subheading 7117.19.50, HTSUS, which provides for "Imitation jewelry: of base metal, whether or not plated with precious metal: other: other. Heading 4202, HTSUS, provides for, inter alia: . . . toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather. . ., or wholly or mainly covered with such materials. To be classified in the above heading, articles must first meet 2 basic criteria: they must be one of, or similar to, the named articles, and they must be "of...or wholly or mainly covered" with one of the specified materials. The instant boxes are suitable for holding small items such as jewelry, cosmetics or desk items. The boxes are similar containers to jewelry boxes and they are made of leather, one of the materials specified in heading 4202, HTSUS. Therefore, the leather boxes are classified in heading 4202, HTSUS. Specifically, the leather boxes are classified in subheading 4202.91.00, HTSUS, which provides for traveling bags, toiletry bags, knapsacks, etc...: other: with outer surface of leather. HOLDING: The earrings and bracelets are classified in subheading 7117.19.50, HTSUS, which provides for imitation jewelry: of base metal, whether or not plated with precious metal: other: other. The rate of duty is 11 percent ad valorem. Latvia has been designated a beneficiary developing country for the purposes of the Generalized System of Preferences (GSP), provided for in Title V of the Trade Act of 1974, as amended (19 U.S.C. Section 2461, et seq.). Articles classifiable under subheading 7117.19.50, HTSUS, which are products of Latvia, are entitled to duty-free treatment under the Generalized System of Preferences upon compliance with all applicable requirements. The leather boxes are classified in subheading 4202.91.00, HTSUS, which provides for traveling bags, toiletry bags, knapsacks, etc...: other: with outer surface of leather. The rate of duty is 6.8 percent ad valorem. Articles classified in this subheading are not subject to the GSP and therefore, are not entitled to entry free of duty. Sincerely, John Durant, Director Commercial Rulings Division