May 14, 2004 CLA-2-71:RR:NC:SP:233 K85866
TARIFF NO.: 7103.91.0010
Mr. Scott Reynolds Robert F. Barnes 1909 East 38˝ Street Austin, TX 78723
RE: The tariff classification and country of origin of cut and polished rubies from Austria.
Dear Mr. Reynolds:
In your letter dated May 4, 2004, on behalf of Signity Americas, Ltd., you requested a tariff classification ruling.
The merchandise under consideration consists of cut and polished rubies. The shipper in Austria will be receiving raw ruby material mined in Burma and shipped as uncut and unworked. They will then process this raw material into cut and polished precious stones, suitable for use in the manufacture of jewelry, but unmounted at the time of importation into the United States.
The applicable subheading for the cut and polished rubies will be 7103.91.0010, Harmonized Tariff Schedule of the United States (HTS), which provides for "Precious stones (other than diamonds) and semi-precious stones, whether or not worked or graded but not strung, mounted or set…Otherwise worked…Rubies." The rate of duty will be free.
The cutting and polishing of the raw ruby material performed in Austria is a significant manufacturing operation which has the effect of changing the character of the outer surface of the gemstone, resulting in a substantial transformation. Therefore, the country of origin of the cut and polished rubies will be Austria.
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.
Robert B. Swierupski Director, National Commodity Specialist Division