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HQ 085903


January 22, 1990

CLA-2 CO:R:C:G 085903 JMH

CATEGORY: CLASSIFICATION

TARIFF NO.: 7114.19, 7115.90

Mr. Martin Weiss
Panda America Corporation
23326 Hawthorne Blvd.
Skypark Ten, Suite 150
Torrance, CA 90505

RE: Singold gold bullion

Dear Mr. Weiss:

This is in response to your October 19, 1989, request for a classification ruling under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) for Singold gold bullion.

FACTS:

Panda America Corporation is the exclusive importer of Singold gold bullion from Singapore. Singold gold bullion are gold items minted in the shape of coins or medallions in weights of 1/20 troy ounce, 1/10 troy ounce, 1/4 troy ounce, 1/2 troy ounce, 1 troy ounce, 5 troy ounces, and 12 troy ounces (one ounce equals 100 Singold). The design on one side of the articles is based on the animals of the Chinese lunar calender accompanied by the written weight and fineness of the gold. The other side of the item contains the words "The Republic of Singapore", the year of issue, and Chinese idioms which symbolize certain characteristics of the lunar year depicted. The one ounce and smaller sizes are also marked with a "weight denomination" which reflects 1/100 of troy ounces.

The Singold gold articles are imported into the United States as investment items in precious metals and as collectibles.

ISSUE:

What is the appropriate classification under the HTSUSA for the Singold gold bullion?

LAW AND ANALYSIS:

The classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUSA states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes..." Currently, the gold articles are being classified within subheading 7115.90, HTSUSA. Subheading 7115, HTSUSA, describes:

7115 Other articles of precious metal or of metal clad with precious metal...

7115.90.10 Other...of gold, including metal clad with gold...

However, heading 7115, HTSUSA, is a general heading to be utilized only when no other more specific headings apply. The appropriate heading, according to the terms of the headings, for the Singold gold bullion is within heading 7114.19, HTSUSA. This heading describes:

7114 Articles of Goldsmiths' or Silversmiths' wares and parts thereof, of precious metal or of metal clad with precious metal...

7114.19 Of other precious metal, whether or not plated or clad with precious metal...

The Explanatory Notes to the HTSUSA, the Harmonized Commodity Description and Coding System (HCDCS), although not dispositive, are to be looked to for the interpretation of the HTSUSA. 54 Fed. Reg. 34127, 34128 (August 23, 1989). Explanatory Note 71.14(E) states that heading 7114 includes "medals and medallions..." HCDCS, Vol. 3. p. 962. Therefore, the medallions in question, the Singold gold articles are classified within subheading 7114.19, HTSUSA.

You request that the articles be classified as gold bullion, however, there is no such classification under the HTSUSA. A possible classification for the Singold gold bullion would be within heading 9705.00.0030, HTSUSA, which describes "Collections and collectors' pieces of...numismatic interest...Numismatic (collector's) coins: Gold...(gold content)..." However, Explanatory Note 97.05(C) states that "goods produced as a commercial undertaking to...depict an event or any other matter...do not fall in this heading..." (original emphasis). HCDCS, Vol 4, p. 1619. Since the Singold gold bullion are a commercial venture they are excluded for treatment as a collectible article.

HOLDING:

The Singold gold bullion from Singapore is properly classified within subheading 7114.19, HTSUSA, as "Aricles of Goldsmiths' or Silversmiths' wares and parts thereof, of precious metal or of metal clad with precious metal...Of other precious metal, whether or not plated or clad with precious metal..." The rate of duty is 7.9 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division

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