H313088

HQ H313088 February 3, 2021 OT:RR:CTF:VS H313088 EE CATEGORY: Origin Ms. [X] [X X X] RE: Diamond Engagement Rings; Country of Origin Marking Dear Ms. [X]: This is in response to your correspondence, dated July 16, 2020, in which you request a ruling concerning the country of origin of certain diamond engagement rings. Your request, submitted as an electronic ruling request, was forwarded to this office on August 14, 2020 from the National Commodity Specialist Division for review. Our ruling is set forth below. You have asked that certain information submitted in connection with this request be treated as confidential. Inasmuch as this request conforms to the requirements of 19 C.F.R. § 177.2(b)(7), the request for confidentiality is approved. The information designated as confidential in your request and contained within brackets in the ruling will not be released to the public and will be withheld from published versions of this ruling. FACTS: The articles under consideration are finished engagement rings imported by [X] (“the importer”). There are three main components of a diamond engagement ring: the shank, the ring-head, and the cut and polished loose diamond. The shank (often referred to as the setting), is the portion of the ring that is circular and fits around the finger. The ring-head is the part of the ring elevated from the shank of the ring that allows the diamond to be fastened securely to the shank. The diamond is a cut and polished loose diamond. You state that the shank of the engagement ring can be either domestic or foreign. Foreign shanks are either imported directly from the foreign vendor or they are delivered to the importer from a domestic vendor who has imported the shanks from their foreign supplier. You state that the gold shanks are classified under subheading 7113.19.5090, HTSUS; platinum shanks are classified under subheading 7113.19.5025, HTSUS. You state that the ring-heads are sourced domestically. Gold ring-heads are classified under subheading 7113.19.5090, HTSUS. Platinum ring-heads are classified under subheading 7113.19.5025, HTSUS. The cut and polished Kimberley compliant diamonds are imported from various foreign vendors. The diamonds are classified under subheading 7102.00.3910, HTSUS, or under subheading 7102.39.0050, HTSUS. You state that the entire end-to-end process of creating a finished engagement ring averages about 80-120 minutes per ring and requires the work of a skilled and highly trained jeweler using specialized equipment. You claim that the imported components undergo a substantial transformation when creating the finished engagement ring. The manufacturing process for the engagement rings includes: the inspection of the ring-head, diamond, and shank; ring-head integration; sizing of the ring; polishing; setting of the diamond in the ring-head; and plating. During the ring-head integration, a hole is drilled in the shank and the shank is filed to accommodate the ring-head. The two pieces are then joined together by soldering and then they are cleaned. Sizing is the process of increasing (sizing up) or decreasing (sizing down) the diameter of the shank to fit the wearer’s finger. Sizing up the ring involves cutting the shank component with a hand saw, bending the two cut ends outward, fabricating a section of the same precious metal is the original shank, adding the new section to the shank, and soldering the section to the shank to fill in the gap. Sizing down the ring involves cutting and removing a small section of the shank using two incisions, bending the cut ends of the shank inward to remove the gap, and soldering the shank ends together. Polishing includes removing surface material, improving the surface and preparing it for buffing by the use of sandpaper and/or coarse compounds. Buffing with the use of buffing wheels and buffing compounds makes the surface smooth, producing a high luster and mirror finish if desired. The setting is the process of affixing the diamond in the ring-head. It involves cutting notches in the ring-head prongs using a drill and a burr, bending the prongs over the diamond to ensure a secure fit, and shaping the ends of the prongs to meet strict standards. The notches in the prongs are cut with a drill and burr, and are cut in the precise size and shape to fit the diamond. At the end of the process, the prongs are rounded to the crown of the diamond. Plating with rhodium is an electro-chemical process to coat a fine layer of rhodium over white gold to increase durability and shine. It involves submerging a completed ring in a cleaning solution and a rhodium solution for a controlled amount of time. Finally, the ring is placed in a solution for several minutes in an ultrasonic cleaner which uses ultrasound to remove unwanted particles and debris from the ring and steam cleaned where the ring is placed under a high-pressure jet of steam to remove any remaining particles and debris. The finished ring is then reviewed to ensure that all quality standards are met. Rings not meeting quality assurance standards are reworked and reprocessed as necessary. ISSUE: What is the country of origin for marking purposes of the diamond engagement rings? LAW AND ANALYSIS: Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304), provides that unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such a manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. § 1304 was that the ultimate purchaser should be able to know by an inspection of the markings on the imported goods the country of which the good is the product. “The evident purpose is to mark the goods so at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940). Part 134, Customs and Border Protection (“CBP”) Regulations (19 C.F.R. § 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. 19 C.F.R. § 134.1(b), defines “country of origin” 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. A substantial transformation occurs “when as a result of a process an article emerges, having a distinctive name, character or use” from the original material subjected to the process. Belcrest Linens v. United States, 741 F.2d 1368, 1372 (Fed. Cir. 1984). If the manufacturing process is a minor one, which leaves the identity of the imported article intact, a substantial transformation has not occurred. See Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026 (1982), aff’d per curiam, 702 F.2d 1022 (Fed. Cir. 1983). CBP looks at the totality of the circumstances and makes decisions on substantial transformation on a case-by-case basis. The country of origin of the article’s components, the extent of the processing that occurs within a given country, and whether such processing renders a product with a new name, character, and use are primary considerations. In addition, facts such as resources expended on product design and development, extent and nature of post-assembly inspection procedures, and worker skill required during the actual manufacturing process are considered when analyzing whether a substantial transformation has occurred and no one factor is determinative. CBP has previously considered whether the assembly of a ring with a stone is considered a substant

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304), provides that unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such a manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. § 1304 was that the ultimate purchaser should be able to know by an inspection of the markings on the imported goods the country of which the good is the product. “The evident purpose is to mark the goods so at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940).Part 134, Customs and Border Protection (“CBP”) Regulations (19 C.F.R. § 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. 19 C.F.R. § 134.1(b), defines “country of origin” 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. A substantial transformation occurs “when as a result of a process an article emerges, having a distinctive name, character or use” from the original material subjected to the process. Belcrest Linens v. United States, 741 F.2d 1368, 1372 (Fed. Cir. 1984). If the manufacturing process is a minor one, which leaves the identity of the imported article intact, a substantial transformation has not occurred. See Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026 (1982), aff’d per curiam, 702 F.2d 1022 (Fed. Cir. 1983).CBP loo