HQ 952677: Protest No. 1401-92-100082; Carved Serpentine and/or Semiprecious stones; Subheading 6815.99.40; Headings 6815 and 7116; ENs 68.15 and 71.16; General EN 3 to Chapter 71; EN Annex III to Section XIV; Note 1, Chapter 68; HQ 950057

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 952677

                        February 4, 1993



CLA-2 CO:R:C:M 952677 EJD

CATEGORY:   Classification

TARIFF NO:  7116.20.20   

Mr. Dennis Murphy
District Director
U.S. Customs Service
101 East Main Street
Norfolk, Virginia  23510

RE:  Protest No. 1401-92-100082; Carved Serpentine and/or
     Semiprecious stones; Subheading 6815.99.40; Headings 6815
     and 7116; ENs 68.15 and 71.16; General EN 3 to Chapter 71;
     EN Annex III to Section XIV; Note 1, Chapter 68; HQ 950057

Dear Mr. Murphy:

     This is in response to the Application for Further Review of
Protest No. 1401-92-100082, which pertains to the tariff
classification of various carved serpentine or other semiprecious
stones under the Harmonized Tariff Schedule of the United States
(HTSUS).

FACTS:

     The merchandise under consideration consists of four
figurines labeled "R262/3," "R314/3," "263/3" and "X05-1 2PC" of
carved serpentine or other semiprecious stone.  The figurines
were invoiced as agate fruits, xin-shan jade fruits, rose-quartz
fruits, and xin-shan jade fruits, respectively.  

     The protestant contends that the merchandise is classifiable
under subheading 6815.99.40, HTSUS, which provides for articles
of stone or other mineral substances not specified elsewhere. 
The entry was liquidated under subheading 7116.20.20, HTSUS,
which provides for articles of semiprecious stones.

     All four figurines of carved serpentine or other
semiprecious stones were sent to the Savannah Customs Laboratory
for analysis.  

ISSUE:

     Whether carved serpentine articles are of stone and
classifiable under subheading 6815.99.40, HTSUS, or of
semiprecious stone and classifiable under subheading 7116.20.20,
HTSUS?

LAW AND ANALYSIS:

     The classification of goods under the HTSUS is governed by
the General Rules of Interpretation (GRIs), taken in order.  GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.

     The two competing headings for these carved articles are the
following:

     Heading 6815, HTSUS, which provides for "[a]rticles of stone
     or of other mineral substances (including articles of peat),
     not elsewhere specified or included."

     Heading 7116, HTSUS, which provides for "[a]rticles of
     natural or cultured pearls, precious or semiprecious stones
     (natural, synthetic or reconstructed)."

     The Harmonized Commodity Description and Coding System
(HCDCS) Explanatory Notes (ENs) constitute the Customs
Cooperation Council's official interpretation of the Harmonized
System.  While not legally binding on the contracting parties,
and therefore not dispositive, the ENs provide a commentary on
the scope of each heading of the Harmonized System and are thus
useful in ascertaining the classification of merchandise under
the System.  Customs believes the notes should always be
consulted.  See T.D. 89-80.  

     In Headquarters Ruling Letter (HQ) 950057, dated October 31,
1991, other carved serpentine stones were classified under
subheading 7116.20.20, HTSUS, as articles of semiprecious stones.

     Sample figurines were examined at the Savannah Customs
Laboratory for a determination of the various weights of the
figurines' constituent components.  Customs laboratory report, 4-
92-22168-004, dated July 22, 1992, provided the following
results:

     "R262/3" Figurine
     
          Components                    % By Weight

         *Quartz                             73
         *Serpentine                         17
          Wire Frame                         10
     "263/3" Figurine    

          Components                    % By Weight

         *Quartz                             70
         *Serpentine                         20
         *Wire Frame                         10

     "R314/3" Figurine

          Components                    % By Weight

         *Serpentine                         92
          Wire Frame                          8

     "X05-1 2PC" Figurine

          Components                    % By Weight
         *Quartz                              8
         *Serpentine                         18
         *Talc                               64   
          Wire Frame                         10

     
     The asterisks in the laboratory report indicate the named
material is listed in HTSUS Explanatory Notes Section XIV III-
Annex as semiprecious stones.  This annex applies to certain
minerals when they are of a quality suitable for use in jewelry,
etc.

     EN 68.15 states that "[t]his heading covers articles of
stone or of other mineral substances, not covered by the earlier
headings of this Chapter and not included elsewhere in the
Nomenclature[.]"  (HCDCS, p. 909).  (Emphasis in the original.) 
Additionally, Note 1, Chapter 68, Section XIII, HTSUS, states
that "[t]his Chapter does not cover . . . (d) [a]rticles of
Chapter 71."  Therefore, if these carvings are of semiprecious
stones they are not properly classifiable within Chapter 68,
HTSUS.

     General EN 3 to Chapter 71 provides, in pertinent part,
that:

     This Chapter includes:

                            *  *  * 

     (3)  In general, articles made wholly or partly of natural
          or cultured pearls, diamonds or other precious or semi-
          precious stones (natural, synthetic or reconstructed),
          precious metals or metal clad with precious metal
          (headings 71.13 to 71.16) (HCDCS, p. 949). 

     EN 71.16 states, in pertinent part, at pgs. 963-4, that:

          This heading covers all articles (other than those
     excluded by Notes 2(b) and 3 to this Chapter), wholly of 
     natural or cultured pearls, precious or semi-precious
     stones, or consisting partly of natural or cultured pearls
     or precious or semi-precious stones, but not containing
     precious metals or metals clad with precious metal (except
     as minor constituents) (see Note 2 (b) to this Chapter).

     It thus includes:

                             *  *  *

     (B)  Other articles consisting wholly or partly of precious
          or semi-precious stones. . . .  Subject to these
          conditions, the heading therefore covers crosses and
          rings (frequently in agate), bracelets (other than
          wrist-watch bracelets), goblets and cups (often in
          garnet); statuettes and ornamental articles (e.g., of
          jade) . . . .  (Emphasis in the original.)

     Heading 7116, HTSUS, covers all articles of semiprecious
stones.  These serpentine or semiprecious stone carvings are of
the kind of articles contemplated in subheading 7116.20.20,
HTSUS, inasmuch as they are ornamental articles made from
semiprecious stones.  Even if the stone is not of jewelry
quality, it is of a quality used to make ornamental articles and
thus is within the purview of heading 7116, HTSUS.  See EN 71.03,
HCDCS, p. 953.

     Therefore, these carved serpentine or other semiprecious
stones are properly classified under subheading 7116.20.20,
HTSUS, as: 

     Articles of natural or cultured pearls, precious or
     semiprecious stones (natural, synthetic or reconstructed)  .
     . . [o]f precious or semiprecious stones (natural, synthetic
     or reconstructed) . . . [o]ther . . . [o]f semiprecious
     stones (except rock crystal),

with a rate of duty of 21 percent ad valorem.

HOLDING:

     The four figurines labeled "R262/3," "R314/3," "263/3" and
"X05-1 2PC" of carved serpentine or other semiprecious stones are
classified in subheading 7116.20.20, HTSUS.
     The protest should be denied in full.  A copy of this
decision should be attached to the Customs Form 19 and provided
to the protestant as part of the notice on the protest.

                                   Sincerely,



                                   John Durant, Director