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NY I88133




November 7, 2002

CLA-2-71:RR:NC:SP:233 I88133

CATEGORY: CLASSIFICATION

TARIFF NO.: 7113.19.5000

Mr. Donald D’ Addario
Theodora, Inc.
One Executive Drive
Fort Lee, NJ 07024

RE: The tariff classification of gold and/or platinum wedding rings from Turkey.

Dear Mr. D’ Addario:

In your letter dated November 1, 2002, you requested a tariff classification ruling.

You have indicated in your letter that you propose to send gold and/or platinum in bar form and loose diamonds to a manufacturer in Turkey. They will manufacture wedding rings using your raw materials, adding only labor to produce a finished product.

You ask if you may pay duty only on the value added (labor) and not on the value of the gold and/or platinum and diamonds since they originated from you and remain your property throughout the manufacturing process.

Subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTS), 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 and 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 American-made 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 gold and/or platinum from the U.S. into gold and/or platinum rings in Turkey would constitute a substantial transformation. The gold and/or platinum rings would be products wholly of Turkey and ineligible for entry under Subheading 9802.00.80, HTS.

The applicable subheading for the gold and/or platinum wedding rings will be 7113.19.5000, HTS, which provides for “Articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal: Of precious metal whether or not plated or clad with precious metal: Of other precious metal, whether or not plated or clad with precious metal: Other: Other.” The rate of duty will be 5.5.% 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 646-733-3036.

Sincerely,

Robert B. Swierupski
Director,

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