Refer to section 1010.100 of this chapter
for general definitions not noted herein. To the extent there is a
differing definition in section 1010.100 of this chapter, the definition
in this section is what applies to part 1027. Unless otherwise indicated,
for purposes of this part:
(a) Covered goods means:
(1) Jewels (as defined in
paragraph (c) of this section);
(2) Precious metals (as defined in paragraph (d) of this section);
(3) Precious stones (as defined in
paragraph (e) of this section); and
(4) Finished goods (including, but not limited to, jewelry, numismatic
items, and antiques), that derive 50 percent or more of their value
from jewels, precious metals, or precious stones contained in or attached
to such finished goods;
(b) Dealer.
(1) Except
as provided in paragraphs (b)(2) and (b)(3) of this section, the term
“dealer” means a person engaged within the United States as a business
in the purchase and sale of covered goods and who, during the prior
calendar or tax year:
(i) Purchased more than $50,000 in covered goods; and
(ii) Received more than $50,000 in gross
proceeds from the sale of covered goods.
(2) For purposes of this section, the term
“dealer” does not include:
(i) A retailer (as defined in paragraph
(f) of this section), unless the retailer, during the prior calendar
or tax year, purchased more than $50,000 in covered goods from persons
other than dealers or other retailers (such as members of the general
public or foreign sources of supply); or
(ii) A person licensed or authorized
under the laws of any State (or political subdivision thereof) to
conduct business as a pawnbroker, but only to the extent such person
is engaged in pawn transactions (including the sale of pawn loan collateral).
(3) For purposes of paragraph
(b) of this section, the terms “purchase” and “sale” do not include
a retail transaction in which a retailer or a dealer accepts from
a customer covered goods, the value of which the retailer or dealer
credits to the account of the customer, and the retailer or dealer
does not provide funds to the customer in exchange for such covered
goods.
(4) For purposes of paragraph
(b) of this section and section 1027.210(a), the terms “purchase”
and “sale” do not include the purchase of jewels, precious metals,
or precious stones that are incorporated into machinery or equipment
to be used for industrial purposes, and the purchase and sale of such
machinery or equipment.
(5) For
purposes of applying the $50,000 thresholds in paragraphs (b)(1) and
(b)(2)(i) of this section to finished goods defined in paragraph (a)(4)
of this section, only the value of jewels, precious metals, or precious
stones contained in, or attached to, such goods shall be taken into
account.
(c) Jewel means an organic substance
with gem quality market-recognized beauty, rarity, and value, and
includes pearl, amber, and coral.
(d) Precious metal means:
(1) Gold, iridium,
osmium, palladium, platinum, rhodium, ruthenium, or silver, having
a level of purity of 500 or more parts per thousand; and
(2) An alloy containing 500 or more parts
per thousand, in the aggregate, of two or more of the metals listed
in paragraph (d)(1) of this section.
(e) Precious
stone means a substance with gem quality market-recognized beauty,
rarity, and value, and includes diamond, corundum (including
rubies and sapphires), beryl (including emeralds and aquamarines),
chrysoberyl, spinel, topaz, zircon, tourmaline, garnet, crystalline
and cryptocrystalline quartz, olivine peridot, tanzanite, jadeite
jade, nephrite jade, spodumene, feldspar, turquoise, lapis lazuli,
and opal.
(f) Retailer means a person engaged within
the United States in the business of sales primarily to the public
of covered goods.
