7102 - Diamonds, whether or not worked, but not mounted or set:

This HTS category, 7102, encompasses diamonds that have undergone some form of processing, such as cutting or polishing, but have not yet been incorporated into jewelry or other articles by being mounted or set. This includes both rough and worked diamonds intended for industrial applications and those of gem quality. The key defining characteristic for classification under 7102 is the state of the diamond – it must be a loose stone, not attached to any setting.

Distinguishing 7102 from its siblings at the root level of the HTS is crucial. Unlike categories covering live animals (Chapter 01) or other diverse product groups, 7102 falls within Section XIV, specifically Chapter 71, which deals with precious materials and articles thereof. This places it alongside categories for natural or cultured pearls, semi-precious stones, precious metals, and articles made from these materials. Therefore, 7102 is differentiated by its focus solely on diamonds, irrespective of their industrial or non-industrial use, as long as they remain unmounted and unset.

The subcategories within 7102 serve to further refine the classification based on the intended use and condition of the diamonds. The "Unsorted" designation (7102.10.00.00) applies to diamonds that have not been categorized by size, shape, quality, or intended application. Subsequent subdivisions distinguish between "Industrial" diamonds, which are primarily used for manufacturing and technical purposes due to their hardness and durability, and "Nonindustrial" diamonds, which are typically of gem quality and intended for use in jewelry or as investment stones. This breakdown allows for specific tariff rates and trade regulations to be applied based on the diamond's commercial value and application.