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NY J88219

September 2, 2003

CLA-2-71:RR:NC:SP:233 J88219


TARIFF NO.: 7113.19.2100; 7113.19.2500; 7113.19.2900

Mr. Stefano Acerbi
Associazione Industriali della
Provincia de Vicenza
Piazza Castello, 3
36100 Vicenza, Italy

RE: The tariff classification of gold chains from Croatia.

Dear Mr. Acerbi:

In your letter dated July 21, 2003, you requested a tariff classification ruling.

You represent gold companies which regularly export to the United States. A few of these companies have set up their own premises in Croatia. Raw gold which has been refined and made into ingots in Switzerland is imported into Italy. In Italy, the gold is melted and made into gold wires. The gold wires are sent to the Croatia-based company which makes the finished product out of wires, generally gold chains for the final consumer.

The applicable subheading for the gold chains, if of rope, will be 7113.19.2100, Harmonized Tariff Schedule of the United States (HTS), which provides for “Necklaces and neck chains, of gold: Rope.” The rate of duty will be 5% ad valorem.

The applicable subheading for the gold chains, if of mixed link will be 7113.19.2500, HTS, which provides for “Necklaces and neck chains, of gold: Mixed link.” The rate of duty will be 5.8% ad valorem.

The applicable subheading for the gold chains if other than rope or mixed link will be 7113.19.2900, HTS, which provides for “Necklaces and neck chains of gold: Other.” The rate of duty will be 5.5% ad valorem.

You have inquired as to whether the gold chains will be eligible for duty-free treatment under the Generalized System of Preferences (“GSP”). Under the GSP, eligible articles the growth, product or manufacture of a designated beneficiary developing (“BDC”) which are imported directly into the customs territory of the United States from a BDC may receive duty-free treatment if the sum of (1) the cost or value of materials produced in the BDC, plus (2) the direct costs of the processing operations performed in the BDC, is equivalent to at least 35 percent of the appraised value of the article at the time of entry into the United States. Under General Note 4, HTS, Croatia is a designated BDC for purposes of the GSP.

If an article is produced or assembled from materials which are imported into the BDC, the cost or value of those materials may be counted toward the 35% value-content minimum only if they undergo a double substantial transformation in the BDC. Since the creating of the gold wire takes place in Italy, only one substantial transformation takes place in Croatia (the making of the chain). Accordingly, only the value of the labor performed in Croatia will be counted towards the 35% value-content requirement.

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 646-733-3036.


Robert B. Swierupski

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