The tariff classification of gold jewelry from Sri Lanka.

NY G87486 March 1, 2001 CLA-2-71:RR:NC:SP:233 G87486 CATEGORY: Classification TARIFF NO.: 7113.19.5000 Mr. Jaipat S. Jain Lazare Potter Giacovas & Kranjac LLP 950 Third Avenue New York, NY 10022 RE: The tariff classification of gold jewelry from Sri Lanka. Dear Mr. Jain: In your letter dated February 21, 2001, on behalf of Key Items, Inc., you requested a ruling on tariff classification. The merchandise to be imported consists of gold jewelry. The following representative samples have been submitted with your request: Style #9532 is a gold ring Style #6144 is a pair of gold earrings Style #8108 is a gold pendant The applicable subheading for the gold jewelry will be 7113.19.5000, Harmonized Tariff Schedule of the United States (HTS), which provides for articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal… other. The rate of duty will be 5.5% ad valorem. Articles classifiable under subheading 7113.19.5000, HTS, which are products of Sri Lanka are currently entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP, however, is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check the Customs Web site at www.customs.gov. At the Web site, click on “CEBB” and then search for the term “GSP.” You also ask for a ruling on whether the process employed by the manufacturer in Sri Lanka qualifies for duty free treatment under the GSP. Raw gold (24 karat) is imported into Sri Lanka and converted into 10 karat or 14 karat gold alloy pellets. The pellets are then used to manufacture the rings, earrings and pendants. Since a double substantial transformation occurs, the cost of the gold can be included in the GSP calculation. Based on the submitted cost breakdowns, the 35% requirement has been exceeded and the jewelry items qualify for duty free treatment under the GSP. 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, contact National Import Specialist Lawrence Mushinske at 212-637-7061. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division