CLA-2 RR:CR:TE 962031 jb
Area Director
U.S. Customs Service
4735 Oakland Street
Denver, CO 80239
RE: Decision on Application for Further Review of Protest No.3307-98-100015; Plywood Flooring
Dear Sir:
This is a decision on an application for further review of a protest timely filed by the
F. Gallagher Transport Intl., Inc., on behalf of Reto Gamweger dba Edelweiss Wood , against your decision regarding the proper classification under the Harmonized Tariff Schedule of the United States (HTSUS) for plywood flooring. The entry at issue was liquidated on April 10, 1998.
FACTS:
The merchandise at issue consists of plywood flooring measuring 7' 2" long, 5.5" wide and 15 mm thick. Each sheet of plywood has been tongued and grooved on the edges and ends. In addition, two 20 mm circles have been cut out and reglued to the face veneer to imitate wood pegs. The plywood is composed of three wood layers: 1) a face veneer 3 mm thick consisting of a 5" wide strip of merbau (a tropical wood species specified in subheading note 1 of chapter 44) and a 1/2" wide strip of white oak; 2) a core of spruce lumber strips 8 mm thick; 3) and a back of fir veneer 4 mm thick.
Although at the time of the protest the Protestant claimed that the subject merchandise is properly classifiable in heading 4409, HTSUS, in the provision for nonconiferous wood, the Protestant now claims that the proper classification for this merchandise is in heading 4418, HTSUS, in the applicable provision for parquet panels. At the time of entry Customs classified this merchandise in heading 4412, HTSUS, in the appropriate provision for plywood, veneered panels and similar laminated wood.
ISSUE:
What is the proper classification for the subject merchandise?
LAW AND ANALYSIS:
Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes, taken in order. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI.
As in all cases, it is the explicit terms of the headings and the accompanying Explanatory Notes to the Harmonized Commodity Description and Coding System (EN) which will control the appropriate classification determination. Heading 4412, HTSUS, provides for, among other things, plywood, veneered panels and similar laminated wood. The EN to heading 4412, HTSUS state, in pertinent part:
This heading covers:
(1) Plywood consisting of three or more sheets of wood glued and pressed one on the other and generally disposed so that the grains of successive layers are at an angle; this gives the panels greater strength and, by compensating shrinkage, reduces warping. Each component sheet is known as a “ply” and plywood is usually formed of an odd number of plies, the middle ply being called the “core”.
* * *
The products of this heading remain classified herein whether or not they have been worked to form the shapes provided for in respect of the goods of heading 44.09, curved, corrugated, perforated, cut or formed to shapes other than square or rectangular and whether or not they have been surface or edge worked, or coated or covered (e.g., with textile fabric, plastics, paint, paper or metal) or submitted to any other operation, provided these operations do not thereby give such products the essential character of articles of other headings.
Heading 4418, HTSUS, provides for, among other things, parquet panels. The EN to heading 4418, HTSUS, state, in pertinent part:
This heading also covers parquet strips, etc., assembled into panels or tiles, with or without borders, including parquet panels or tiles consisting of parquet strips assembled on a support of one or more layers of wood. These panels or tiles may be tongued and grooved at the edges to facilitate assembly.
In the opinion of the Protestant the terms of heading 4418, HTSUS, may be applied to the subject merchandise. Critical to the classification of this merchandise is the fundamental understanding of the distinction in the construction between plywood of heading 4412, HTSUS, and parquet panels of heading 4418, HTSUS. Heading 4418, HTSUS, provides for parquet panels including panels having a face of multiple veneer strips which are assembled on a support of one or more layers of wood. Merchandise of heading 4418, HTSUS, usually displays a mosaic design of two or more strips across the width of the face of the wood, similar to the submitted product.
In its imported condition, the subject merchandise consists of a face ply, with two strips of veneer, that is a 5" wide strip of merbau and a 1/2" wide strip of white oak. This construction is encompassed within the terms of parquet panels of heading 4418, HTSUS. Accordingly, the subject merchandise is correctly classified in heading 4418, HTSUS.
HOLDING:
The protest should be granted in full. In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.ustreas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division