Jewelry Imports Qualify for Duty-Free Treatment Under US-Oman FTA, Importer Argues
An entry of gold jewelry from Oman qualifies for duty-free treatment under the U.S.-Oman Free Trade Agreement Implementation Act, importer Empire Jewelry argued in a July 28 complaint to the Court of International Trade. The importer noted that CBP doesn't disagree as to the Harmonized Tariff Schedule subheading that applies to the case, subheading 7113.19.5090, but rather whether the jewelry originates in Oman under the terms of the FTA (Empire Jewelry v. United States, CIT # 24-00127).
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Empire imported the lone entry of gold jewelry at issue in 2021, classifying the goods under subheading 7113.19.5090, which is an "other" provision providing for articles of jewelry, made of or clad with precious metal. Ordinarily, the subheading assesses a 5.5% duty rate on applicable imports, though goods entered under this subheading originating in Oman qualify for duty-free treatment.
The importer said the correct classification of the goods subject to the UOFTA is "OM7113.19.5090" to reflect its qualification for duty-free treatment under the FTA.
Empire said it submitted various documents to CBP to prove that the jewelry originates in Oman. The submissions showed that the 24 karat fine gold bases used to make the jewelry were sourced from the United Arab Emirates and the U.S., "then later combined by hand with trace amounts of alloy metal and hand cast, to fabricate and hand-finish wearable 22 karat gold jewelry." The company said "all steps of production" occurred "entirely in Oman."
The submissions also showed that the sum of the gold bars from the UAE and the U.S., "together with the direct costs of processing operations performed entirely in Oman," aren't less than 35% of the appraised value of the jewelry at the time of entry. The evidence "satisfies the eligibility requirements of UOFTA to receive duty free treatment for Plaintiff's Gold Jewelry entry," the complaint said.