Plastic Bead Necklace with Metallic Paint; NY E87523 Modified

HQ 967788 May 19, 2006 CLA-2 RR:CTF:TCM 967788ptl CATEGORY: Classification TARIFF NO.: 7117.90.7500 Ms. Jane L. Taeger Compliance Manager Samuel Shapiro & Company, Inc. 401 East Pratt Street Suite 500 Baltimore, MD 21202 RE: Plastic Bead Necklace with Metallic Paint; NY E87523 Modified Dear Ms. Shapiro: This is in response to your letter, on behalf of your client, Unique Industries, Inc., dated June 14, 2005, in which you request modification of the portion of New York Ruling (NY) E87523, dated September 14, 1999, that classified item #95110, referred to as “Diamond Metallic Bead Necklace,” in subheading 7117.19.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “[i]mitation jewelry: of base metal, whether or not plated with precious metal: other: other: other.” You contend that the beads in the Diamond Metallic Bead Necklace are actually plastic and therefore the article should properly be classified in subheading 7117.90.7500, HTSUS, which provides for “[i]mitation jewelry: other: other: other: of plastics.” To assist Customs and Border Protection (CBP) in ascertaining the composition of the product, you provided samples and laboratory analyses. In addition to the Diamond Metallic Bead Necklace, NY E87523 also classified four other products. You are not requesting reconsideration of the classification provided for any of the other products and this ruling will not affect those classification determinations. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625 (c)(1)), as amended by Title VI, a notice was published in the April 5, 2006, CUSTOMS BULLETIN, Volume 40, Number 15, proposing to modify NY E87523, and to revoke any treatment accorded to substantially identical transactions. No comments were received in response to the notice. FACTS: Although the products under consideration are called “Diamond Metallic Bead Necklaces,” information you have provided indicates that the actual composition of the necklaces is black plastic beads that have been covered with a colored coating that is either purple, green, gold or silver. The CBP Laboratory tested two samples of the product you provided, and the results showed the products were composed of polystyrene plastic beads covered with paints that were either acrylic or polyurethane based. The CBP Laboratory reports are: NY20051149 and NY20051150, both dated 08/18/05. Additional product information you have provided shows that the imported value of the necklaces is more than 20 cents per dozen. ISSUE: What is the classification of the necklaces made of plastic beads coated with metallic paint? LAW AND ANALYSIS: Merchandise is classifiable under the 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 may then be applied in order. The HTSUS subheadings under consideration are as follows: 7117 Imitation jewelry: Of base metal, whether or not plated with precious metal: * * * 7117.19 Other: Other: * * * 7117.19.9000 Other 7117.90 Other: * * * Other: * * * Valued over 20 cents per dozen pieces or parts: * * * Other: Of plastics When the subject necklaces were initially classified in NY E87523, CBP did not have the benefit of the technical data regarding the composition of the product from the manufacturer, nor were tests performed on the goods by the CBP Laboratory. Classification in that ruling was made based upon the appearance of the product and information provided by the requester. Unfortunately, neither the appearance, the marketing designation (“Metallic Bead Necklace”) nor available product data provided accurate information about the product. Based on the product information currently before CBP, we have determined that the classification provided for the product identified as item #95110, called Diamond Metallic Bead Necklace, in NY E87523 is incorrect. The correct classification for the product is subheading 7117.90.7500, HTSUS. HOLDING: Item #95110, referred to as a “Diamond Metallic Bead Necklace,” composed of plastic beads that have been coated with colored metallic-appearing paint is classified in subheading 7117.90.7500, HTSUS, which provides for: “Imitation jewelry: Other: Other: Valued over 20 cents per dozen pieces or parts: Other: Of plastics. The 2006 column one duty rate for products of that subheading is “Free.” 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 www.usitc.gov. EFFECT ON OTHER RULINGS: NY E87523, dated September 14, 1999, is modified. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the CUSTOMS BULLETIN. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division