The tariff classification of gold jewelry from Korea

N347575 May 5, 2025 CLA-2-98:OT:RR:NC:N4 462 CATEGORY: Classification TARIFF NO.: 9802.00.80 Daiil Moon Moon Jewelry INC 55w 47th St. Suite 440 New York, NY 10036 RE: The tariff classification of gold jewelry from Korea Dear Mr. Moon: In your letter dated April 8, 2025, you requested a tariff classification ruling regarding the applicability of 9 802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), to the scenario delineated below. You propose a scenario whereby your U.S.-based company exports 24K gold bars to a contract manufacturer in South Korea. In Korea, the gold bars are processed into jewelry items including necklaces, bracelets, and earrings. No foreign-origin materials are added during processing. After processing, the finished jewelry is imported back into the United States. You seek confirmation on whether the value of the U.S.-origin gold bars is eligible for duty exemption under 9802.00.80, and whether duties should only apply to the processing cost incurred in Korea. 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, HTSUS, 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.” 19 C.F.R. § 10.14(c)), states in part: Operations not incidental to the assembly process. Any significant process, operation, or treatment other than assembly whose primary purpose is the fabrication, completion, physical or chemical improvement of a component, or which is not related to the assembly process, whether or not it effects a substantial transformation of the article, will not be regarded as incidental to the assembly and will preclude the application of the exemption to such article. The following are examples of operations not considered incidental to the assembly as provided under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202): (1) Melting of exported ingots and pouring of the metal into molds to produce cast metal parts. ?Therefore, the jewelry imported into the United States is not eligible for the partial duty exemption under subheading 9802.00.80, HTSUS. 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 at https://hts.usitc.gov/. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Sandra Sary at sandra.sary@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division