June 7, 2006 CBP Bulletin Notices on Necklaces of Plastic Beads with Metallic Paint and a Certain Metal Medallion
In the June 7, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 24), CBP issued notices: (a) modifying a classification ruling on necklaces of plastic beads with metallic paint, and (b) revoking a classification ruling on a certain base metal medallion. CBP states that it is also revoking any treatment it has previously accorded to substantially identical transactions.
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According to CBP, this modification and revocation are effective for merchandise entered or withdrawn from warehouse for consumption on or after August 6, 2006. CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.
Revocation or Modification of Two Classification Rulings
Necklaces of plastic beads with metallic paint. At issue are products called "Diamond Metallic Bead Necklaces." However, CBP notes that the information provided indicates that the actual composition of the necklaces is black plastic beads that have been covered with a colored coating that is either purple, green, gold or silver. According to CBP lab reports, the products are composed of polystyrene plastic beads covered with paints that are either acrylic or polyurethane based. In addition, the imported value of the necklaces is more than 20 per dozen.
CBP is issuing HQ 967788 in order to modify NY E87523 to reflect the proper classification of the subject necklaces under HTS 7117.90.7500, as imitation jewelry: other: other: valued over 20 per dozen pieces or parts: other: of plastics; rather than under HTS 7117.19.9000, as imitation jewelry: of base metal, whether or not plated with precious metal: other: other: other.
CBP explains that when the subject necklaces were initially classified in NY E87523, it did not have the benefit of technical data regarding the composition of the product from the manufacturer, nor were tests performed on the goods by the CBP Laboratory. As a result, classification in NY E87523 was made based upon the appearance of the product and the information provided by the requester. Unfortunately, the appearance, the marketing designation ("Metallic Bead Necklace"), and the available product data provided for the subject necklaces were inaccurate.
Furthermore, CBP states that based on the product information now available to CBP, it has determined that the classification provided for the subject necklaces in NY E87523 is incorrect. CBP now finds that the subject necklaces are classified in HTS 7117.90.7500.
new: HTS 7117.90.7500, duty-free; previous: 7117.19.9000, 11%.
(See ITT's Online Archives or 04/13/06 news, 06041335, for BP summary of proposed HQ 967788.)
Certain base metal medallion. At issue is an award medallion made mainly of lead that is approximately two inches in diameter with the designation Scholar ARCS Foundation, Inc. on its surface. CBP notes that it is given to award recipients and worn only at ceremonies.
CBP is issuing HQ 968149 in order to revoke NY 894287, and reclassify the subject medallion under HTS 7117.19.9000, as imitation jewelry: of base metal, whether or not plated with precious metal: other: other: other; rather than under 7806.00.0000, as other articles of lead.
CBP finds that NY 894287 is incorrect; it now argues that the medallion is "imitation jewelry" as the medallion is worn as personal adornment and does not incorporate precious metal or metal clad with precious metal, natural or cultured pearls, or precious or semi-precious stones.
Among other things, CBP contends that the medallion meets the terms of HTS heading 7117 (as imitation jewelry) and the conditions of Legal Note 11 to Chapter 71 because it is an article of personal adornment that does not incorporate precious metal or metal clad with precious metal, natural or cultured pearls, or precious or semi-precious stones.
In addition, Explanatory Note (EN) 78.06 explains that heading 7806 covers all lead articles not included in the preceding headings of [Chapter 78], or in Chapter 82 or 83, or more specifically covered elsewhere. CBP finds that the medallion is precluded from classification under HTS 7806 as it is specifically described in HTS 7117, as imitation jewelry.
new: HTS 7117.19.9000, 11%; previous: 7806.00.0000, 3%.
(See ITT's Online Archives or 04/20/06 news, 06042040, for BP summary of proposed HQ 968149 on the subject medallion.)
June 7, 2006 CBP Bulletin (Vol. 40, No. 24) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_06072006_no24/