The tariff classification of gold jewelry with diamonds assembled in Hong Kong.

NY K85856 May 21, 2004 CLA-2-71:RR:NC:SP:233 K85856 CATEGORY: Classification TARIFF NO.: 7113.19.5000 Mr. Richard Roth Alarama Jewelry Co., Inc. 21-21 44th Drive Long Island City, NY 11101 RE: The tariff classification of gold jewelry with diamonds assembled in Hong Kong. Dear Mr. Roth: In your undated letter received by us on May 6, 2004, you requested a tariff classification and country of origin ruling. Alarama Jewelry, Inc. is a manufacturer and distributor of jewelry servicing major retailers throughout the United States. Gold castings that are either made by you or purchased and diamonds that have been cut and polished in India will be sent to Hong Kong for assembly. The applicable subheading for 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: Of precious metal whether or not plated or clad with precious metal... Other.” The rate of duty will be 5.5% ad valorem. You would like relief from duty (except for labor) since you own all of the items sent to Hong Kong for assembly. Subheading 9802.00.80, HTS, provides for a partial exemption from duty on “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 and painting.” An article entered under this tariff provision is subject to a duty upon the full value of the imported assembled article, less the cost of value of U.S. components meeting these requirements assembled therein, provided there has been compliance with the documentation requirements of 19 CFR 10.24. Section 10.11(b), Customs Regulations (19 CFR 10.11(b)), provides, in part, that the “allowance of an importer’s claim is dependent upon meeting the statutory requirements for the exemption under subheading 9802.00.80 and his complying with the documentary requirements set forth in section 10.24.” Section 10.24(a), Customs Regulations (19 CFR 10.24(a)), requires the submission of a foreign assembler’s declaration with the entry of articles claimed to be entitled to the exemption under subheading 9802.00.80, HTS. The declaration must state that, to the best of the assembler’s “knowledge and belief”, the articles being imported were assembled, in whole or in part, from components that are products of the U.S., and must contain certain information concerning the U.S. components, including their description, their marks of identification, quantity, unit value at time and place of export from the U.S., the port and date of export from the U.S. and the name and address of the manufacturer. 19 CFR 10.24(a)(1). The declaration must also include a description of the assembly operations performed abroad, as well as an endorsement by the importer certifying the accuracy of the declaration and other documents submitted. At issue is not whether you own the castings and diamonds, but if they are American components or American made. The diamonds that have been cut and polished in India are obviously not. The castings if, made by you, would be American and eligible for free duty under 9802.00.80, HTS. 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. Please contact National Import Specialist Lawrence Mushinske at (646) 733-3036 for an appointment to discuss this issue at length. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division