Analysis
HTS 7116.10.25 covers of natural or cultured pearls: cultured under heading 7116 (articles of natural or cultured pearls, precious or semiprecious stones (natural…).
Neighbouring lines carry rates from duty-free to 10.5%, so the exact line matters. The widest gap is with 7116.20.50 (other: other), at duty-free: a product that belongs there but is entered here, or the reverse, changes the duty by 5.5 percentage points.
The general duty rate is 5.5% of the customs value, which is above most the rates in chapter 71 (76th percentile of 108 lines with an ad valorem rate). On a shipment valued at $10,000 that is $550 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 5.5%. 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.
The column 2 rate, for countries without normal trade relations, is 110%, 20.0 times the general rate.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 7116.10.10 | Of natural or cultured pearls: natural | 3.3% |
| 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 |