The tariff classification of leather bracelets from Nicaragua.

N250443 March 10, 2014 CLA-2-71:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 7117.90.9000 Chris E. Howell Co-Founder The Pulsera Project 870 Duvall Street Charleston, SC 29412 RE: The tariff classification of leather bracelets from Nicaragua. Dear Mr. Howell: In your letter dated February 17, 2014, you requested a tariff classification ruling for the leather bracelets, and application and eligibility of the leather bracelets under the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act (DR-CAFTA). In brief, the Pulsera Project is a non-profit organization that educates, empowers, and connects Nicaraguan youth with students in more than five-hundred United States schools through the sale of colorful hand-woven bracelets, or “pulseras” in Spanish. Per your description two styles of bracelets have been identified. Style “A” is a single piece of leather tied with string, has a string tie, and dangling from the string are two small wooden beads. Style “B” is three pieces of leather woven together with string, and has a string tie. The bracelets are approximately 6-inches long and a ½-inch wide. The leather and string are produced in Nicaragua. It is claimed that all of the materials are made in Nicaragua. Legal Note 11 in conjunction with Legal Note 9 (a) to Chapter 71 of the Harmonized Tariff Schedule of the United States (HTSUS) provides in pertinent part, that the expression “imitation jewelry” means any small articles of personal adornment for example rings, bracelets, necklaces, brooches, earrings, pendants, pins, and the like – not incorporating precious metal or metal clad with precious metal, except as minor constituents. Further Legal Note 2 (g) to Chapter 42 (Articles of Leather; ….), HTSUS, excludes cuff-links, bracelets or other imitation jewelry (heading 7117). Accordingly, the leather bracelets are classifiable in the provision for imitation jewelry of heading 7117, HTSUS, with its subheading of 7117.90.9000. General Note 29 to the Harmonized Tariff Schedule of the United States (HTSUS) provides for preferential tariff treatment of goods originating in a DR-CAFTA country. Note (a) and (b) of the DR-CAFTA provision provides: (a) Goods for which entry is claimed under the terms of the Dominican Republic-Central America-United States Free Trade Agreement are subject to duty as set forth herein. For the purposes of this note— (i) originating goods or goods described in subdivision (a)(ii), subject to the provisions of subdivisions (b) through (n) of this note, that are imported into the customs territory of the United States and entered under a provision— (A) in chapters 1 through 97 of the tariff schedule for which a rate of duty appears in the “Special” subcolumn of column 1 followed by the symbol “P” or “P+” in parentheses, or (B) in chapter 98 or 99 of the tariff schedule where rate of duty or other treatment is specified, are eligible for the tariff treatment and quantitative limitations set forth therein in accordance with sections 201 through 203, inclusive, of the Dominican Republic Central America-United States Free Trade Agreement Implementation Act (Pub. L. 109-53; 119 Stat. 462); (ii) wherever a special rate of duty followed by the symbol “P+” in parentheses appears in the tariff schedule, or a provision specifies that such rate of duty or other treatment applies to certain agricultural goods, such duty rate or other treatment applies to goods that otherwise qualify as originating goods under the terms of this note but as to which any operations performed in, or any material obtained from, the United States shall be considered as if the operations were performed in, and the material was obtained from, a country that is not a party to the Agreement; and (iii) except as provided in individual notes or tariff provisions, the terms “party to the Agreement” and “parties to the Agreement” refer to the following countries: Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua or the United States. (b) For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— (i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement; (ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and— (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or (B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or (iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials. Without a process description from start to finish of the producing of the two bracelets, and bills of materials for the two bracelets indicating composition of materials, weight of materials, and country of origin of the materials, we are unable to confirm whether the bracelets are wholly obtained or produced, or made exclusively from originating materials. Regardless of originating status yet to be confirmed, company provided information indicates that all materials are made in Nicaragua, meaning that there are no “non-originating” materials used in the production of the bracelets, thereby give rise to the bracelets qualifying as originating goods under the DR-CAFTA. Because the bracelets are originating goods under the DR-CAFTA and are classifiable in subheading 7117.90.9000, HTSUS, with its “Special” subcolumn of column 1 denoting letter “P,” the goods are eligible for duty-free treatment. The applicable subheading for the bracelets will be 7117.90.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Imitation Jewelry: Other: Other: Valued over 20 cents per dozen pieces or parts: Other: Other.” The rate of duty for the bracelets qualifying for preferential treatment under the DR-CAFTA will be 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 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 Neil H. Levy at (646) 733-3036. Sincerely, Gwenn Klein Kirschner Acting Director National Commodity Specialist Division