Highlights of Tariff Classification: Jewellery and Imitation Jewellery (Chapter 71)
Lilla Zsitnyanszky
27. September 2023
In this post, we will briefly clarify the difference in the tariff classification between "jewellery" and "imitation jewellery." Additionally, we will provide an overview of the key information that should be considered in this industry.
Articles of jewellery
In the context of Position 7113 (according to Note 9 to Chapter 71), the following criteria must be met to classify an item as jewellery:
1) Material
Jewellery can be made from precious metals or from metal clad with precious metal, and it may also include decorations such as pearls or gemstones. It is important to note that if the jewellery is not entirely made of precious metal or of metal clad with precious metal, the product must contain these materials beyond the threshold of insignificant decoration. For example, a cigarette case made of copper but adorned with a golden monogram must be classified under Chapter 74 as ordinary metal products (copperware).
2) Intended Use
Small items for personal adornment (all products worn by a person on their body), such as rings, bracelets, necklaces, brooches, earrings, watch-chains, fobs, pendants, tiepins, cuff links, dress-studs, religious or other medals and insignia, etc.
Goods for personal use (all products typically carried in a pocket, handbag, or on one's person), such as cigar or cigarette cases, snuff boxes, cachou or pill boxes, powder boxes, chain purses or prayer beads, etc.
When classifying jewellery articles, it should be noted that the Combined Nomenclature lists specific products in other chapters that can be made of precious metals or of metal clad with precious metal and may serve both as personal adornment and utility items according to their product description or notes. These products should not be classified under Position 7113 but should have their own tariff code. For example:
According to Note 2(b) to Chapter 42 (items in Position 4202 and 4203: bags and similar containers)
According to Note 3(l) to Chapter 71 (Position 9101: watches and wristwatches, etc.)
According to Note 4 to Chapter 96 (ballpoint pens, pocket lighters, etc.)
Imitation jewellery in Customs Tariff
In the context of Position 7117 (according to Note 11 to Chapter 71), the following criteria must be met to classify an item as imitation jewellery:
1) Material
Imitation jewellery items can be made from any material except precious metals and metal clad with precious metal, pearls, gemstones, and gemstone jewellery that belongs to Chapter 71. However, precious metals, metal clad with precious metal, pearls, gemstones, and gemstone jewellery can only be included to a minor extent for decoration.
2) Intended Use
Small items for personal adornment, similar to the concept of jewellery as described above (all products worn by a person on their body), except for items such as buttons and hairpins (Position 9606, 9616) or hairbands (classified based on material composition). Examples of imitation jewellery include finger rings, bracelets (excluding watchbands), necklaces, earrings, cufflinks, etc.
Goods for personal use (all products typically carried in a pocket, handbag, or on one's person) cannot be considered imitation jewellery. This means that these products cannot be classified under Chapter 71 but must be classified in other chapters based on their material, such as wooden powder boxes (Chapter 44) or leather wallets (Chapter 42).
traide Support
There is a wealth of information and legal provisions to consider when it comes to classification. If the classification is incorrect, everything is incorrect: customs duties, export declarations, preferential treatment, export control provisions, excise taxes, sales taxes, and so on.
Why Choose traide AI?
At traide, we are dedicated to the customs tariff number. Our goal with traide is to offer an intelligent software package that achieves and maintains the completeness, currency, and integrity of an entire company's product master data (sometimes millions of products) according to customs tariff requirements over time. In addition, we address the issues that arise before the actual classification process and significantly influence it. This includes, in particular, the quality of the product description, which often provides inadequate information or presents this information in an unstructured and distributed manner (e.g., in HTML format on a webshop or in product data sheets).
At its core, traide software functions as an intelligent digital customs tariff expert. It helps to quickly find the correct customs tariff number, acting as a "Tariff Assistant." It also automatically checks already classified product inventories for formal and substantive accuracy and provides feedback to the user in case of errors. The result is significantly increased throughput and a lower error rate for classified products. This frees up staff resources, creates room for scaling, and enhances security.
Do you have any questions about this? Feel free to write to us! We are happy to assist you.
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