HQ 956925 - Protest 1001-93-108754; semi-precious stone jewelry; 7116.20.10; finished articles of jewelry; graded, temporarily strung stones; EN 71.16; HRL 086375 and HRL 086104 - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1995 HQ Rulings > HQ 956912 - HQ 956975 > HQ 956925

Previous Ruling Next Ruling
HQ 956925

October 3, 1994

CLA-2 CO:R:C:M 956925 KCC

CATEGORY: CLASSIFICATION

TARIFF NO.: 7116.20.20

Regional Commissioner
United States Customs Service c/o Protest and Control Section
6 World Trade Center, Room 761
New York, New York 10048-0945

RE: Protest 1001-93-108754; semi-precious stone jewelry; 7116.20.10; finished articles of jewelry; graded, temporarily strung stones; EN 71.16; HRL 086375 and HRL 086104

Dear Regional Commissioner:

This is in response to Protest 1001-93-108754, which pertains to the tariff classification of semi-precious stone jewelry under the Harmonized Tariff Schedule of the Unites States (HTSUS). Samples were submitted for our examination and are being returned as requested.

FACTS:

The semi-precious stone jewelry consists of the following:

1. Invoice from Tai Hing Trading Company: 16mm Dime A.T.Q.
16mm Dime Rhodonite
15x20mm Leaf A.T.Q.
15x20 Leaf Rhodonite
4x13mm Square Cylinder Rhodonite
4x13mm Square Cylinder A.T.Q.
4x13mm Round Cylinder A.T.Q.
15x20mm Leaf Rose Quartz
6x16mm Teardrops A.T.Q.
6x16mm Teardrops Rhodonite
9x22mm Teardrops A.T.Q.
9x22mm Teardrops Rhodonite
22mm Life-saver A.T.Q.

2. Invoice from Hing Yip Gem Co., Ltd.:
Soo Chow Jade Dragon Head Necklace 20" 6-8mm Soo Chow Jade Dragon Head Necklace 24" 6-10mm

3. Invoice from New South Gem Company:
12mm bead african turquoise 32"
10mm bead african turquoise 32"
32" 8mm bead african turquoise (sample submitted) 32" necklace 10mm beads ryolite
32" necklace 6mm beads ryolite
32" necklace 8mm beads ryolite
32" necklace 4mm beads ryolite
32" necklace 4mm bead amazonite (sample submitted) 32" necklace 8mm beads flower jasper
32" necklace 8mm beads african turquoise
32" necklace 4mm beads african turquoise
32" necklace 6mm heart assorted stones (sample submitted) 32" necklace 6mm heart tigereye

The entry of the above described jewelry was liquidated on October 15, 1993, under subheading 7116.20.20, HTSUS, as other semiprecious stones. Customs classification is based on the conclusion that the jewelry at issue is graded, temporarily strung semiprecious stones.

In a protest timely filed on December 14, 1993, the protestant contends that the semiprecious stone jewelry articles are finished jewelry articles and, therefore, are properly classified under subheading 7116.20.10, HTSUS, as articles of semiprecious jewelry. In support of its contention that the semiprecious stones are finished jewelry articles, the protestant has submitted a letter from South Pacific Wholesale Co. which states that "...the 36 and 32 inch 'endless' chips are and always have been an item of finished jewelry. They slip right over the wearer's head...There are innumerable retail catalogues selling the 36 inch chips as finished jewelry...." A retail catalogue depicting various stone necklaces was also submitted.

The competing subheadings are as follows:

7116.20 Articles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed)...Of precious or semiprecious stones (natural, synthetic or reconstructed)....

7116.20.10 Articles of jewelry.

7116.20.20 Other...Of semiprecious stones (except rock crystal).

ISSUE:

Is the semiprecious stone jewelry classified under subheading 7116.20.10, HTSUS, as articles of semiprecious jewelry, or under subheading 7116.20.20, HTSUS, as other semiprecious stones.

LAW AND ANALYSIS:

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, states, in part, that "for legal purposes, classification shall be determined according to terms of the headings and any relative section or chapter notes...."

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System (HCDCS) Explanatory Notes (ENs) may be consulted. The ENs, although not dispositive, provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the HTSUS. See, T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

EN 71.16 (pgs. 963-964), states that heading 7116, HTSUS, "...covers all articles (other than those excluded by Notes 2(b) and 3 to this Chapter), wholly of natural or cultured pearls, precious or semi-precious stones, or consisting partly of natural or cultured pearls or precious or semi-precious stones, but not containing precious metals or metal clad with precious metal...(emphasis in original)." EN 71.16 (A) states:

It includes pearls or stones graded according to size, quality, shade, etc., and constituting an article ready for use as jewellery. But the heading excludes ungraded pearls or stones merely temporarily strung for facility of transport without any setting or fitting of metal or other material; these fall in heading 71.01, 71.03 or 71.04 (see Explanatory Notes to headings 71.01 to 71.03) (emphasis in original).

Based on EN 71.16, heading 7116, HTSUS, includes finished articles of semiprecious jewelry, and graded, temporarily strung semiprecious stones. See also, Headquarters Ruling Letter (HRL) 086375 dated May 23, 1990, and HRL 086104 dated December 14, 1989. An examination of the invoiced merchandise and the three submitted samples indicates that the strung stones at issue are graded. Therefore, the issue to be determined is whether the jewelry at issue is finished articles of jewelry or temporarily strung stones.

In support of its contention that the semiprecious stones are finished jewelry articles, the protestant has submitted a letter from South Pacific Wholesale Co. which states that "...the 36 and 32 inch 'endless' chips are and always have been an item of finished jewelry. They slip right over the wearer's head...There are innumerable retail catalogues selling the 36 inch chips as finished jewelry...." A retail catalogue
depicting various stone necklaces was also submitted. We do not find this evidence compelling because it does not appear to apply to the semiprecious stones at issue.

Although the letter from South Pacific Wholesale Co. mentions 32 and 36 inch necklaces, the only evidence submitted shows the sale of 36 inch necklaces. This evidence is the catalog which shows 2 items of Amethyst and 1 item of Malachite, both of which are 36 inches in length. Whereas, the imported sizes range from 20 to 32 inches and the submitted samples are all 32 inches in length. None of the invoices described the imported articles as being 36 inches in length. Most of the invoice descriptions do not indicate length or designation as a necklace. However, the numerous articles are invoiced according to size and shape of stone.

The only other evidence available is an examination of the three samples from the actual entries. Based on this examination, we are of the opinion that the semiprecious stones are temporarily strung. A visual examination of the samples shows that the graded stones are strung on nylon thread which contains visible knots. Nylon thread is not normally used for finished stone jewelry because it is not durable and does not allow for a free-forming look. Moreover, the stone strand contains visible knots, not just a single know which could be hidden under a blouse or behind the neck. Knots make the strand of stones unappealing and may cause discomfort when worn because they stick out from the stone strand.

Based on the evidence available, we are of the opinion that the semiprecious stones are not finished articles of jewelry, but are graded, temporarily strung stones. Therefore, they are classified under subheading 7116.20.20, HTSUS, as other semiprecious stones.

HOLDING:

The subject semiprecious stone jewelry is graded, temporally strung semiprecious stones and, therefore, is classified under subheading 7116.20.20, HTSUS, as other semiprecious stones.

The protest should be DENIED. In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to customs personnel via the Customs Rulings

Module in ACS and the public via the Diskette Subscription Service, Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director
Commercial Rulings Division

Previous Ruling Next Ruling