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E-mail This PageTariff Imposition on CabochonsGuidance for ImportersAs several importers have already learned, in 2009 Customs officials at some U.S. ports of entry, such as the one in Anchorage, Alaska, began imposing a duty on the importation of cabochons. Many other ports are not charging the duty. The inconsistency among the ports is based on differing interpretations of language in the Harmonized Tariff Schedule, which does not require a duty on stones that are “cut but not set.” The officials imposing the duty have concluded that cabochons are not “cut.” The Tariff Classification Branch at Customs Headquarters is in the process of determining the correct interpretation of “cut.” This determination will be binding on all ports of entry. While the Classification Branch considers the issue, which may take some time, shipments of cabochons continue. During this period, until the decision is made, importers may challenge the duty as follows: Importers who have already had the tariff imposed should file a protest on US Customs Form 19, available in the JVC Forms Bank. Protests must be filed within 180 days after the duty is imposed. The form is also available at the US Customs website, at http://www.cbp.gov/xp/cgov/toolbox/forms/. Prospective importers of cabochons who are charged the duty should ask the Customs official to suspend action. The basis of the suspension request would be that Customs Headquarters is in the process of determining the correct interpretation of “cut but not set.” Importers should cite to a US Customs Bulletin issued in May, 2009, to substantiate that the interpretations are not uniform. The relevant portion of the Bulletin begins on page 91 and is titled Proposed Revocation of a Ruling Letter and Proposed Revocation of Treatment Relating to the Tariff Classification of Tumbled Semi-Precious Gemstones. The helpful language is in footnote 16 on page 97 where “cutting” is defined as: “The process of the cutting or sawing, grinding…faceting of precious stones or other materials to improve its brilliancy on revolving diamond charged grinding wheels. After cutting, it normally has a symmetrical shape which is sometimes in cabochon.” (emphasis added). The Bulletin is available on the Customs website at http://cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/vol43_05222009_no21/. Click on General Notices and go to page 97 for the language noted above in footnote 16. Customs officials have the discretion to grant or deny the suspension. If the official wants to verify that Headquarters is reconsidering the issue he/she can call Richard Mojica, an Attorney/Advisor with the Office of International Trade for confirmation. Mr. Mojica can be reached at 202-325-0032. JVC members can find the Cabochons US Customs Protest Form in JVC’s Forms Bank, www.jvclegal.org |
Jewelers Vigilance Committee
Does Not Provide Any Form Of Legal Advice.
Does Not Provide Any Form Of Legal Advice.