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 > 1997 HQ Rulings > HQ 952506 - HQ 953080 > HQ 952677

Previous Ruling Next Ruling
HQ 952677




February 4, 1993

CLA-2 CO:R:C:M 952677 EJD

CATEGORY: CLASSIFICATION

TARIFF NO: 7116.20.20

Mr. Dennis Murphy
District Director
U.S. Customs Service
101 East Main Street
Norfolk, Virginia 23510

RE: Protest No. 1401-92-100082; Carved Serpentine and/or Semiprecious stones; Subheading 6815.99.40; Headings 6815 and 7116; ENs 68.15 and 71.16; General EN 3 to Chapter 71; EN Annex III to Section XIV; Note 1, Chapter 68; HQ 950057

Dear Mr. Murphy:

This is in response to the Application for Further Review of Protest No. 1401-92-100082, which pertains to the tariff classification of various carved serpentine or other semiprecious stones under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise under consideration consists of four figurines labeled "R262/3," "R314/3," "263/3" and "X05-1 2PC" of carved serpentine or other semiprecious stone. The figurines were invoiced as agate fruits, xin-shan jade fruits, rose-quartz fruits, and xin-shan jade fruits, respectively.

The protestant contends that the merchandise is classifiable under subheading 6815.99.40, HTSUS, which provides for articles of stone or other mineral substances not specified elsewhere. The entry was liquidated under subheading 7116.20.20, HTSUS, which provides for articles of semiprecious stones.

All four figurines of carved serpentine or other semiprecious stones were sent to the Savannah Customs Laboratory for analysis.

ISSUE:

Whether carved serpentine articles are of stone and classifiable under subheading 6815.99.40, HTSUS, or of semiprecious stone and classifiable under subheading 7116.20.20, HTSUS?

LAW AND ANALYSIS:

The classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRIs), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

The two competing headings for these carved articles are the following:

Heading 6815, HTSUS, which provides for "[a]rticles of stone or of other mineral substances (including articles of peat), not elsewhere specified or included."

Heading 7116, HTSUS, which provides for "[a]rticles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed)."

The Harmonized Commodity Description and Coding System (HCDCS) Explanatory Notes (ENs) constitute the Customs Cooperation Council's official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the System. Customs believes the notes should always be consulted. See T.D. 89-80.

In Headquarters Ruling Letter (HQ) 950057, dated October 31, 1991, other carved serpentine stones were classified under subheading 7116.20.20, HTSUS, as articles of semiprecious stones.

Sample figurines were examined at the Savannah Customs Laboratory for a determination of the various weights of the figurines' constituent components. Customs laboratory report, 4- 92-22168-004, dated July 22, 1992, provided the following results:

"R262/3" Figurine

Components % By Weight

*Quartz 73
*Serpentine 17
Wire Frame 10
"263/3" Figurine

Components % By Weight

*Quartz 70
*Serpentine 20
*Wire Frame 10

"R314/3" Figurine

Components % By Weight

*Serpentine 92
Wire Frame 8

"X05-1 2PC" Figurine

Components % By Weight
*Quartz 8
*Serpentine 18
*Talc 64
Wire Frame 10

The asterisks in the laboratory report indicate the named material is listed in HTSUS Explanatory Notes Section XIV III- Annex as semiprecious stones. This annex applies to certain minerals when they are of a quality suitable for use in jewelry, etc.

EN 68.15 states that "[t]his heading covers articles of stone or of other mineral substances, not covered by the earlier headings of this Chapter and not included elsewhere in the Nomenclature[.]" (HCDCS, p. 909). (Emphasis in the original.) Additionally, Note 1, Chapter 68, Section XIII, HTSUS, states that "[t]his Chapter does not cover . . . (d) [a]rticles of Chapter 71." Therefore, if these carvings are of semiprecious stones they are not properly classifiable within Chapter 68, HTSUS.

General EN 3 to Chapter 71 provides, in pertinent part, that:

This Chapter includes:

(3) In general, articles made wholly or partly of natural or cultured pearls, diamonds or other precious or semi- precious stones (natural, synthetic or reconstructed), precious metals or metal clad with precious metal (headings 71.13 to 71.16) (HCDCS, p. 949).

EN 71.16 states, in pertinent part, at pgs. 963-4, that:

This heading 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 metals clad with precious metal (except as minor constituents) (see Note 2 (b) to this Chapter).

It thus includes:

(B) Other articles consisting wholly or partly of precious or semi-precious stones. . . . Subject to these conditions, the heading therefore covers crosses and rings (frequently in agate), bracelets (other than wrist-watch bracelets), goblets and cups (often in garnet); statuettes and ornamental articles (e.g., of jade) . . . . (Emphasis in the original.)

Heading 7116, HTSUS, covers all articles of semiprecious stones. These serpentine or semiprecious stone carvings are of the kind of articles contemplated in subheading 7116.20.20, HTSUS, inasmuch as they are ornamental articles made from semiprecious stones. Even if the stone is not of jewelry quality, it is of a quality used to make ornamental articles and thus is within the purview of heading 7116, HTSUS. See EN 71.03, HCDCS, p. 953.

Therefore, these carved serpentine or other semiprecious stones are properly classified under subheading 7116.20.20, HTSUS, as:

Articles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed) . . . [o]f precious or semiprecious stones (natural, synthetic or reconstructed) . . . [o]ther . . . [o]f semiprecious stones (except rock crystal),
with a rate of duty of 21 percent ad valorem.

HOLDING:

The four figurines labeled "R262/3," "R314/3," "263/3" and "X05-1 2PC" of carved serpentine or other semiprecious stones are classified in subheading 7116.20.20, HTSUS. The protest should be denied in full. A copy of this decision should be attached to the Customs Form 19 and provided to the protestant as part of the notice on the protest.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling

See also: