Analysis
HTS 7116.10.10 covers of natural or cultured pearls: natural under heading 7116 (articles of natural or cultured pearls, precious or semiprecious stones (natural…).
Within this group the rate runs from duty-free to 10.5%. Compared with 7116.20.40 (of semiprecious stones (except rock crystal): other), which pays 10.5%, a misclassification either way moves the duty by 7.2 percentage points.
The column 2 rate, for countries without normal trade relations, is 80%, 24.2 times the general rate.
The general duty rate is 3.3% of the customs value, which is in the middle of the rates in chapter 71 (60th percentile of 108 lines with an ad valorem rate). On a shipment valued at $10,000 that is $330 in duty before any Chapter 99 additions or preference claims.
Goods that qualify under GSP, the Australia FTA, the Bahrain FTA, the Chile FTA, the Colombia TPA, and 12 others can enter duty-free instead of paying 3.3%. It is also eligible under GSP, the developing-country programme, which Congress has to renew; check whether GSP is in force on the entry date.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 7116.10.25 | Of natural or cultured pearls: cultured | 5.5% |
| 7116.20.05 | Valued not over $40 per piece | 3.3% |
| 7116.20.15 | Articles of jewelry: other | 6.5% |
| 7116.20.30 | Graded semiprecious stones strung temporarily for convenience of transport | 2.1% |
| 7116.20.35 | Figurines of semiprecious stone | 4.5% |
| 7116.20.40 | Of semiprecious stones (except rock crystal): other | 10.5% |
| 7116.20.50 | Other: other | Free |