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NY 876519

July 30, 1992

CLA-2-71:S:N:N1:115 876519


TARIFF NO.: 7114.11.7000

Mr. Martin W. Bloch
Intertrans Corporation
9770 Harrison Road
Romulus, MI 48174

RE: The tariff classification of silver coins from Russia.

Dear Mr. Bloch:

In your letter dated June 30, 1992, you requested a tariff classification ruling, on behalf of your client, Interolympus in Saginaw, MI and their subsidiary, USA Sales, Inc.

The subject items are silver coins minted in Russia. The coins will have all wording in Russian. On one side, the weight is indicated as 1 oz and the notation Ag999 appears. This signifies that they are 99.9% silver. They are minted from U.S. origin silver that is shipped to Russia and pressed into coins.

None of these coins are legal tender. They are considered to be medals and may become collectors' items. Its intrinsic value corresponds to the actual silver content.

Your suggestion as to these coins being classified under 9802, HTS has been considered. Please note the following:

HTSUS subheading 9802.00.50 provides a partial duty exemption for articles returned to the United States after having been exported to be advanced in value or imported in condition by means of repairs or alterations. Articles entitled to this partial duty exemption are dutiable only upon the value of the foreign repairs or alterations, upon compliance with the documentary requirements of section 10.8, Customs Regulations (19 CFR 10.8). However, entitlement to this tariff treatment is precluded where the exported articles are incomplete for their intended use prior to the foreign processing, Guardian Industries Corp. v. United States, 3 CIT 9 (1982), as "repairs and alterations are made to completed articles and do not include intermediate processing operations which are performed as a matter of course in the preparation or the manufacture of finished articles." Dolliff & Company, Inc., v. United States, C.D. 4755, 81 Cust.Ct 1, 455 F.Supp. 618 (1978), aff'd, C.A.D. 1225, 66 CCPA 77, 599 F.2d 1015 (1979) (Court's emphasis). Thus, "the focus is upon whether the exported article is incomplete or unsuitable for its intended use prior to the foreign processing." Guardian Industries.

The applicable subheading for the silver coins will be 7114.11.7000, Harmonized Tariff Schedule of the United States (HTS), which provides for articles of goldsmiths' or silversmiths' wares and parts thereof: of silver, whether or not plated or clad with other precious metal: other. The duty rate will be 6% ad valorem.

Your inquiry does not provide enough information for us to give a ruling on the country of origin marking requirements. Your request for a marking ruling should include a description of the manner in which the coins will be packaged.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.


Jean F. Maguire
Area Director

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