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NY L83007

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March 9, 2005

CLA-2-71:RR:NC:SP:233 L83007

CATEGORY: CLASSIFICATION

TARIFF NO.: 9802.00.8068

Mr. C.J. Erickson
Cowan, Liebowitz & Latman, P.C.
1133 Avenue of the Americas
New York, NY 10036-6799

RE: The tariff classification of jewelry parts from St. Croix, U.S. Virgin Islands.

Dear Mr. Erickson:

In your letter dated February 11, 2005, on behalf of Leach & Garner, you requested a tariff classification ruling.

Your letter concerns two situations regarding U.S. origin gold jewelry items sent to St. Croix, U.S. Virgin Islands. The first consists of Jump Rings, Split Rings, Spacers, Lightweight Cups, Pins and Omega Springs. You have provided a catalogue and the detailed manufacturing steps performed in St. Croix.

General Note 3 (a)(iv)(A), Harmonized Tariff Schedule of the United States (HTS), concerns products of Insular Possessions:
goods imported from insular possessions of the United States are subject to the rates of duty set forth in column 1 of the tariff schedule, except that all such goods the growth or product of any such possession, or manufactured or produced in any such possession from materials the growth, product or manufacture of any such possession or of the Customs territory of the United States, or of both, which do not contain foreign materials to the value of more than 70 percent of their total value coming to the customs territory of the United States directly from any such possession are exempt from duty.

The processing operation performed in St. Croix qualifies as a substantial transformation. Accordingly, the six jewelry items are considered products of the U.S. Virgin Islands.

The second situation concerns U.S. components which do not undergo a substantial transformation in St. Croix. They are assembled into jewelry from articles comprised solely of U.S. components, other than water. These five items are Top Wires, Omega Springs, Ball Earrings, Lightweight Cups and Pins.

You have provided a catalogue depicting the pieces and a description of the work performed in St. Croix.

General Note 3(a)(iv)(D) of the HTS states that any special duty treatment afforded goods imported under the CBERA must also be afforded to imports from U.S. insular possessions. The Note states:

Subject to the provisions in section 213 of the Caribbean Basin Economic Recovery Act, goods which are imported from insular possessions of the United States shall received duty treatment no less favorable than the treatment afforded such goods when they are imported from a beneficiary country under such Act.

Based on General Note 3(a)(iv)(D), the five items in your second situation will also be entitled to free duty.

The applicable subheading for the jewelry components will be 9802.00.8068, Harmonized Tariff Schedule of the United States (HTS), which provides for “Articles, except goods of heading 9802.00.90 and goods imported under provisions of subchapter XIX of this chapter and goods imported under provisions of subchapter XX, 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, Other.” The rate of duty will be Free.

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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See also:

• Tariff No.: 9802.00.80 - U.S. articles assembled abroad, which have not lost their physical identity or have not advanced in value or improved in condition abroad
• Tariff No.: 9802.00.90 - Textile and apparel goods, assembled in Mexico in which all fabric components were wholly formed and cut in the United States, etc.