March 21 Bulletin Proposes to Modify Ruling on Kimberly Application to Tumbled Diamonds
In the March 21, 2012 issue of the U.S. Customs and Border Protection Bulletin (Vol. 46, No. 13), CBP published a notice that proposes to modify a ruling regarding whether a jewelry set with tumbled diamonds from Zambia is subject to the Kimberley Process Certification Scheme (KPCS).
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Comments on Proposed Modification Due April 20
CBP states that before taking this action, consideration will be given to any written comments received by April 20, 2012. In addition, any party who has received a ruling or decision on the merchandise that is subject to the proposed modification, or any party involved with a substantially identical transaction, should advise CBP by the date that written comments on the proposed ruling are due. (An importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agents for importations subsequent to the effective date of the final decision in this notice.)
Proposed Modification
CBP is proposing to modify the ruling below, and revoke or modify any rulings on these products that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
Jewelry Set with Tumbled Diamonds from Zambia
| Item: A jewelry set with tumbled diamonds from Zambia consisting of silver, gold, or copper. Each piece of jewelry was said to be valued at over $40, but a carat weight of the tumbled diamonds was not provided. The tumbled diamond jewelry set would be classified in subheading 7113.11.50 (5%) when set in silver; 7113.19.50 (5.5%) when set in gold; and 7116.20.15 (6.5%) when set in copper. |
| Current: Tumbled diamonds are considered rough, subject to KPCS requirements and not allowed to enter the U.S. |
| Proposed: Tumbled diamonds are not rough, not subject to KPCS requirements and allowed to enter the U.S. |
| Reason: CBP previously found the subject jewelry will not be allowed into the U.S. because tumbled diamonds are considered rough and Zambia is not a member of the KPCS. CBP had stated that a tumbled diamond is where the surface has been rendered glossy and shiny by chemical treatment (polishing) and that tumbled diamonds are not considered "worked" but still in their "rough" state. The Clean Diamond Trade Act of 2003 (CDTA)1 prohibits the importation into, or exportation from, the U.S. of any rough diamond, from whatever source, that has not been controlled through the KPCS. CBP notes that the term "rough diamond" is defined by the CDTA as any diamond that is unworked or simply sawn, cleaved, or bruted and classified under subheading 7102.10, 7102.21, or 7102.31. Based on this definition, CBP finds that the jewelry at issue is admissible into the U.S. and is not subject to the KPCS requirements. CBP explains that heading 7102 provides for diamonds, whether or not worked, but not mounted or set. As the instant jewelry consists of gold, silver, or copper jewelry set with tumbled diamonds from Zambia, it is not classified in heading 7102 and is not considered a "rough diamond" under the CDTA. Consequently, the jewelry set with tumbled diamonds from Zambia is not subject to the KPCS requirements and is not prohibited from import under the CDTA. |
| Proposed for modification: NY N018792 (2007) |
| Proposed new ruling: HQ H173035 |
1The CDTA (P.L. 108-19, 117 Stat. 631) concerns efforts by the U.S. to curb the use of funds derived from the sale of rough diamonds by state actors and rebels to finance military activities and subvert international efforts to promote peace and stability.