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NY E82705




June 1, 1999

CLA-2-71:RR:NC:SP:233 E82705

CATEGORY: CLASSIFICATION

TARIFF NO.: 7113.19.5000

Mr. Amit Malhotra
Altima Jewelers Inc.
12722 Hitchcock Court
Reston, VA 20191

RE: The tariff classification of gold jewelry from India and Singapore.

Dear Mr. Malhotra:

In your letter dated May 18, 1999, you requested a tariff classification ruling.

You have indicated that you would like to export 22 and 24 karat gold to India and Singapore for the purpose of manufacturing jewelry. Since the gold will be of U.S. origin and owned by your company, you indicated that you will be billed only for the manufacturing charges, insurance and freight. You have inquired as to whether duty would apply only to the manufacturing charges.

Subheading 9802.00.80, Harmonized Tariff Schedule of the United States, provides for 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, painting. Duty would be upon the full value of the imported article, less the cost or value of such products of the United States.

In order to meet the requirements under subheading 9802.00.80, HTS, a product would have to be merely assembled abroad from Americanmade components and not substantially transformed into a new and different article.

A substantial transformation occurs when, as a result of manufacturing processes, a new and different article emerges, having a distinctive name, character, or use, which is different from that originally possessed by the article or material before being subject to the manufacturing process. In your situation, the processing of 22 and 24 karat gold from the U. S. into gold jewelry in India and Singapore would constitute a substantial transformation. The gold jewelry would be products wholly of India and Singapore and ineligible for entry under Subheading 9802.00.80, HTS. Duty would be based on the total cost of the finished articles including the value of the gold supplied from the United States, and the costs incurred in transporting the gold to India and Singapore.

The applicable subheading for the gold jewelry will be 7117.19.5000, HTS, which provides for articles of jewelry and parts thereof... of other precious metal, whether or not plated or clad with precious metal: other: other. The rate of duty will be 5.5 percent ad valorem.

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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