March 14 CBP Bulletin Withdraws Revocation Ruling on "Cut but not Set" Gems
In the March 14, 2012 issue of the U.S. Customs and Border Protection Bulletin (Vol. 46, No. 12), CBP published a notice on its withdrawal of a proposed ruling revocation on the phrase "cut but not set" in HTS Chapter 71 for tumbled semi-precious gemstones, and treatment CBP previously accorded to substantially identical transactions.
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2009 Proposal Said "Tumbling" Is not "Cutting," Stones Not Under HTS 7103
In 2009, CBP proposed to revoke HQ 951866 (1992), which classified tumbled semi-precious gemstones in subheading 7103.99.10, as "cut but not set" semiprecious stones that are suitable for use in the manufacture of jewelry. CBP had proposed to revoke this ruling as it found "cut" and "tumbled" were interchangeably used in error, according to the definition of "cut but not set" in HQ H012548 (2008).
(In HQ H012548, CBP stated that "cutting" and "polishing" were two different processes in gem manufacturing1. Thus in proposing to revoke HQ 951866, CBP reasoned that the subject tumbled stones could not be classified in a subheading of 7103 for cut stones suitable for use in manufacturing jewelry. See ITT's Online Archives 09052750 for summary of CBP's proposal to revoke HQ 951866.)
But 2011 Ruling Said "Cut" Includes Tumbling and Other Processes
Since the publication of the proposed revocation, CBP has reconsidered the definition of the term "cut". A new ruling HQ H140915 (2011) found that the definition of the term "cut" as espoused by HQ H012548 to be too narrow and modified the ruling. As a result, CBP expanded the definition of "cut" to involve one or more of the following processes: carving, cleaving, sawing, girdling, bruting, grinding, faceting, polishing, cabbing, and tumbling.
(See ITT's Online Archives 11051723 and 11052007 for summaries of CBP's proposal to modify the definition of "cut but not set" in Chapter 71. See 11082605 for summary of CBP expanding the definition of "cut" to include other processes.)
CBP Now Says Tumbled Stones Are Classified Under 7103
CBP now states it is clear that the tumbled semiprecious stones classified in HQ 951866 are covered by the terms of subheading 7103.99.10 and should remain classified there. Therefore, CBP is withdrawing its intent to revoke HQ 951866 and any other ruling not specifically identified. Additionally, CBP is withdrawing its intent to revoke any treatment previously accorded by CBP to substantially identical transactions.
1CBP concluded that the process of "cutting" gemstones creates new facets and angled surfaces on gemstones, whereas the process of "polishing" simply smoothed and brightened the surface of the stones.
CBP Contact -- Tamara Anolic (202) 325-0036