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March 3, 1999

CLA-2-71:RR:NC:SP:233 D88864

CATEGORY: CLASSIFICATION

TARIFF NO.: 7113.19.5000

Isbas Inc.
Ayazma yolu Okul sok. no.7/2 Oztek Center 80350 Kagithane
Istanbul, Turkey

RE: The tariff classification of gold jewelry from Turkey.

Dear Mr. Öz:

In your letter dated February 2, 1999, you requested a tariff classification ruling.

You indicate that you operate a private free trade zone in Istanbul, Turkey. One of your potential customers presently buys gold from Switzerland and the South African Republic, processes the merchandise in Turkey and sells the jewelry items to the United States. They would like to operate in your free trade zone, buy the gold from the U.S., process it in the free zone and ship the finished jewelry items to the U.S.

The applicable subheading for gold jewelry will be 7113.19.5000, Harmonized Tariff Schedule of the United States (HTS), which provides for articles of jewelry and parts thereof, of precious metal...other. The rate of duty will be 5.5 percent ad valorem.

You have inquired as whether the gold jewelry is entitled to partial duty exemption since the gold is of U.S. origin and only the labor is Turkish. The country of origin of an article which has been processed in more than one country is that country in which the last substantial transformation takes place. A substantial transformation takes place when the processing of a material or article results in a new and different article having a distinct name, character, or use. Gold, produced in the U.S., is substantially transformed when manufactured into jewelry in Turkey. Therefore, gold jewelry produced in Turkey from gold of U.S. origin is a product of Turkey, the country in which the processing takes place.

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 Lawrence Mushinske at 212-637-7061.

Sincerely,

Robert B. Swierupski

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