The tariff classification of diamond and pearl jewelry assembled in Thailand.

N041326 October 20, 2008 CLA-2-98:OT:RR:E:NC:SP:233 CATEGORY: Classification TARIFF NO.: 7113.19.5000; 9802.00.80 Mr. Geoffrey Levy Western Stone and Metal Corp. 8085 South Chester Street Centennial, CO 80112 RE: The tariff classification of diamond and pearl jewelry assembled in Thailand. Dear Mr. Levy: In your letter dated October 10, 2008, you requested a tariff classification ruling. Your company ships loose polished diamonds and loose pearls together with 14 carat gold castings to your factory in Thailand. At the factory the stones are set into the castings or the pearls are glued onto the castings. The resulting jewelry is then re-imported into the United States. The diamonds are a product of Israel while the pearls are products of Tahiti, Australia, Japan or China. The gold castings are wholly a product of the United States. The applicable subheading for the gold jewelry will be 7113.19.5000. Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal… other, other.” The rate of duty will be 5.5% ad valorem. All merchandise imported into the United States is subject to duty on its full appraised value and total quantity unless specifically exempted. Heading 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.” 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.All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full cost or value of the imported assembled article, less the cost or value of the U.S. components assembled therein, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24). The value of the gold castings can be deducted from the value of the jewelry when reimported. 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 World Wide Web at http://www.usitc.gov/tata/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. If you have any questions regarding the ruling, contact National Import Specialist Lawrence Mushinske at (646) 733-3036. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division