NY B80798

January 13, 1997

CLA-2-71:RR:NC:SP:233 B80798

CATEGORY: Classification; Marking

TARIFF NO.: 7116.20.0500; 7116.20.1500

Mr. Michael A. Brown

Actionline International Inc.

391 Rampart Range Road

Woodland Park, CO 80863

RE: The tariff classification and marking of semiprecious stone jewelry
from Guatemala.

Dear Mr. Brown:

In your letter dated December 29, 1996, you requested a tariff
classification and a country of origin marking ruling.

The submitted sample is an anklet measuring 10 inches in length. It is
made of semiprecious stone beads and gold plated beads, strung on wire,
with a lobster claw clasp.

In your letter, you indicate that you intend to send jewelry parts,
which you will purchase in the United States, to Guatemala for assembly
into anklets and bracelets. You will then re-import the finished anklets
and bracelets. The jewelry parts will consist of semiprecious stone
beads (e.g. amethyst, garnet, bloodstone, clear quartz, lapis lazuli,
fresh water pearl, moonstone, peridot, malachite, opal, pink coral and
turquoise), gold and silver plated base metal beads, gold and silver
plated base metal clasps and nylon coated braided steel wire for
stringing.

The applicable subheading for the semiprecious stone anklets and
bracelets, if valued not over \$40 per piece, will be 7116.20.0500
Harmonized Tariff Schedule of the United States (HTS), which provides
for \"Articles of . . . semiprecious stones (natural, synthetic or
reconstructed): Articles of jewelry: Valued not over \$40 per piece.\"
The rate of duty rate will be 4.6 percent ad valorem.

If the semiprecious stone anklets and bracelets are valued over \$40 per
piece, the applicable subheading will be 7116.20.1500, HTS, which
provides for \"Articles of . . . semiprecious stones (natural, synthetic
or reconstructed): Articles of jewelry: Other.\" The rate of duty will
be 6.5 percent ad valorem.

Articles classifiable under subheadings 7116.20.0500 and 7116.20.1500,
HTS, which are products of Guatemala are entitled to duty free treatment
under the Generalized System of Preferences (GSP) upon compliance with
all applicable regulations.

You have also inquired about the country of origin marking requirements
for the semiprecious stone anklets and bracelets.

The marking statute, section 304, Tariff Act of 1930, as amended (19
U.S.C. 1304), provides that every article of foreign origin (or its
container) imported into the United States shall be marked in a
conspicuous place as legibly, indelibly, and permanently as the nature
of the article (or its container) will permit, in such a manner as to
indicate to the ultimate purchaser in the U.S. the English name of the
country of origin of the article, with certain exceptions.

The \"country of origin\" is defined in 19 CFR 134.1(b) as \"the country
of manufacture, production, or growth of any article of foreign origin
entering the United States. Further work or material added to an article
in another country must effect a substantial transformation in order to
render such other country the \'country of origin\' within the meaning
of this part; however, for a good of a NAFTA country, the NAFTA Marking
Rules will determine the country of origin.\" For tariff purposes, the
courts have held that a substantial transformation occurs if a new and
different article emerges having a distinctive name, character or use.
Anheuser-Busch Brewing Association v. The United States, 207 U.S. 556
(1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).

In this case, the assembly process in Guatemala results in a substantial
transformation. The assembled jewelry has a distinctive name, character
or use different from the unassembled jewelry parts, and therefore is a
good of Guatemala for marking purposes. Accordingly, the jewelry will be
required to have country of origin marking pursuant to 19 U.S.C. 1304
when imported into the United States.

As a general rule, marking requirements are best met by marking worked
into the article at the time of manufacture. For example, it is
suggested that the country of origin on metal articles be die sunk,
molded or etched. However, based on your submitted sample, it does not
appear to be feasible to stamp or engrave the name of the country of
origin on the jewelry. In such instances, the Customs Service normally
permits any reasonable method of marking that will remain on the article
during handling until it reaches the ultimate purchaser. This includes
the use of string tags. Section 134.44 of the Customs Regulations
explicitly provides that marking by means of string tags is an
acceptable method of indicating country of origin, as long as the tags
are affixed in a conspicuous place and so securely that, unless
deliberately removed, they will remain on the article until it reaches
the ultimate purchaser (19 CFR 134.44).

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 212-466-5739.

Sincerely,

Gwenn Klein Kirschner

Chief, Special Products Branch

National Commodity

Specialist Division