The tariff classification of a bracelet from Nicaragua; and the applicability of any trade programs or agreements.

N272728 March 2, 2016 CLA-2-71:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 7117.90.9000 Chris Howell Co-founder The Pulsera Project 449 Fleming Road, Unit C Charleston, SC 29412 RE: The tariff classification of a bracelet from Nicaragua; and the applicability of any trade programs or agreements. Dear Mr. Howell: In your letter dated February 4, 2016, you requested a tariff classification ruling. A color photograph of a bracelet was submitted, which consists of nine recycled paper beads strung on two nylon strings. The two strings, one blue and one red have seven beads attached side-by-side, and flowing through the strings is a slipknot with an individual bead attached to each end. The slipknot allows the bracelet to be put on and taken off. You indicate that the bracelet with beads is handmade in Nicaragua. Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined 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 2 through 6 may then be applied in order. Legal Note 3 (g) to Chapter 71, HTSUS, excludes goods of Section XI (textiles and textile articles) from its chapter and its headings and subheadings. We are of the opinion that the exclusionary note for textile articles is inapplicable, in that the bracelet is highly adorned and ornamented with nine recycled paper beads that dominate the appearance of the jewelry piece. Consequently, the merchandise concerned is classifiable as imitation jewelry. When interpreting and implementing the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The merchandise concerned is composed of different components (nylon and paper) and is considered a composite good for tariff purposes. The ENs to the HTSUS, GRI 3 (b) (VIII), state that “the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good. In this case, the nine recycled paper beads impart the essential character to the bracelet, because the size and volume of the beads, and the ornamentation of the beads, attract one’s eye to the jewelry piece. The applicable subheading for the Pulsera Project bracelet 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 will be 11% ad valorem. 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/. Besides classification of the merchandise concerned, you indicate in your ruling request, if there are any applicable trade programs or agreements. We find that the merchandise concerned, if meeting the requirements, may be eligible for preferential duty treatment under the Dominican Republic-Central America-United States Free Trade Agreement Implementation ACT (DR-CAFTA. General Note 29 of the HTSUS sets forth the rules and requirements of the DR-CAFTA, and provides for the “Change in tariff classification rules” for purposes of originating goods under the DR-CAFTA. Pursuant to GN 29 (b), goods are eligible for treatment as an originating good 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. Even though the bracelet and recycled beads are handmade in Nicaragua, it remains unclear whether the jewelry piece is wholly obtained or produced entirely in the territory of the DR-CAFTA countries. Upon supporting documentation, step-by-step process description of the making of the bracelet and bill of materials with country of origin of each component used in the bracelet, this good may be wholly obtained or produced entirely in the territory of the DR-CAFTA countries. Because the bracelet is assembled entirely in the DR-CAFTA country of Nicaragua, we turn to GN 29 (b) (ii) (A) above. Since the merchandise concerned is classified in subheading 7117.90 of the HTSUS, the applicable change in tariff classification rule or tariff shift rule of origin is set forth in GN 29 (n): Chapter 71 – 11: A change to headings 7117 through 7118 from any other heading. Accordingly, if any of the components used in the making of the bracelet are determined to be nonoriginating, upon review of the supporting documentation as identified above, then this good may be originating under the terms and requirements of the DR-CAFTA, GN 29 (b) (ii) (A). 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 neil.h.levy@cbp.dhs.gov. Sincerely, Deborah C. Marinucci Acting Director National Commodity Specialist Division