HS 050800 Red coral (Corallium rubrum)

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What products does HS 050800 cover?

This subheading covers red coral (Corallium rubrum) and similar corals, whether worked or unworked, but not further prepared. According to the World Customs Organization (WCO) Harmonized System Nomenclature, this category includes natural coral that has been harvested and may be in its raw form or minimally processed, such as cut or polished, but not incorporated into finished articles. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that this classification applies to the raw material itself, distinct from finished jewelry or decorative items.

What falls outside HS 050800?

The following products are excluded from HS 050800: finished articles of coral, such as jewelry, sculptures, or decorative objects, which are classified under their respective headings based on their function and material composition. Imitation coral, synthetic coral, or coral substitutes are also not covered by this subheading. For instance, plastic or glass items resembling coral would be classified elsewhere, typically in chapters covering plastics (Chapter 39) or glass (Chapter 70), based on their primary constituent material.

What are common classification mistakes for HS 050800?

A common error is misclassifying worked coral that has undergone significant processing or has been incorporated into a finished product. General Rule of Interpretation (GRI) 1 states that classification shall be determined according to the terms of the headings and any relative section or chapter notes. If coral is set into a piece of jewelry, it is no longer classified under 050800 but under the heading for jewelry (Chapter 71). Similarly, coral powder or fragments intended for use as a dietary supplement would be classified differently.

How should importers classify products under HS 050800?

The correct procedure for classifying products under HS 050800 involves a thorough examination of the product's form and degree of processing. Importers and customs brokers must verify that the product is indeed natural red coral or a similar coral species and that it has not been further prepared beyond basic working, such as cutting or polishing. Consulting the official tariff schedule of the importing country, such as the USITC HTS or the EU TARIC, and reviewing the explanatory notes for Heading 0508 is crucial for accurate classification.

How is the duty calculated for products under HS 050800?

A shipment of 10 kilograms of polished red coral branches, declared at a customs value of $5,000 USD, would attract a US duty of $150.00. This is calculated using the Most Favored Nation (MFN) duty rate of 3.0% ad valorem, applied to the declared value ($5,000 USD × 0.03 = $150.00). This calculation is based on the duty rate published in the USITC Harmonized Tariff Schedule for HS code 050800.9000 (for worked coral).

Which trade agreements reduce duties for HS 050800?

Several free trade agreements may reduce the applicable duty rate for HS 050800, including the Generalized System of Preferences (GSP) for eligible developing countries, which can offer duty-free entry. For instance, originating coral from countries like the Philippines may benefit from GSP. To claim preferential treatment, importers typically need to provide a GSP Form A certificate of origin. Specific bilateral agreements, if applicable to coral, would also be considered, requiring appropriate origin documentation as stipulated by the respective trade pact.

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