CLA-2-44:RR:NC:2:230 C89984

Mr. Rodney Ralston
Trans-Border Customs Services, Inc.
One Trans-Border Drive
P.O. Box 800
Champlain, NY 12919

RE: The tariff classification of unassembled pallets and additional packing material from Canada

Dear Mr. Ralston:

In your letter dated June 30, 1998, on behalf of your client, Royal Lumber Manufacturing Limited, you requested a tariff classification ruling. The ruling was delayed because of a review of the classification of lumber products by the U.S. Customs Service.

The ruling was requested on unassembled pallets and additional pieces of wood for packing vinyl siding. The shipments will consist of the exact number of pieces necessary to make a specific number of pallets. The lumber will be used only for pallet assembly. The pieces will be cut to the exact sizes needed for the specific pallets. The customer will not further process the lumber in any way.

You have given a range of sizes for the pieces of the pallets in one of the letters submitted along with a diagram. We cannot give rulings on ranges of sizes for unspecified pallets. However, we will address one specific pallet described by your client in one of his letters.

The unassembled pallet in question measures 44” wide by 154” long when assembled. It consists of ten pieces of spruce-pine-fir (S-P-F) wood measuring 1” x 6” x 44” as the top deckboards, three pieces of S-P-F wood measuring 2” x 4” x 154” as the stringers and four pieces of S-P-F wood measuring 2” x 4” x 47” as the bottom deckboards. In addition, the shipment will contain unassembled pieces of wood to be used to hold the vinyl siding on the pallets. The pieces of wood consist of solid sawn S-P-F and are not further worked. They will be used as crossbars and uprights and will be added after the merchandise is loaded onto the pallets. Corner angles made of OSB (oriented strand board) aspenite particle board are also included with the additional packing material.

Two photographs illustrating the use of the products were submitted. One shows a stack of assembled long pallets. The other shows boxes of siding on one pallet with four square frame-like assemblies around the boxes. The two end frames have corners which are reinforced with particle board angles.

Classification of goods under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRI’s). GRI 1 provides that classification shall be first determined according to the terms of the headings and any relative section or chapter notes.

Heading 4415, HTSUS, provides for:

Packing cases, boxes, crates, drums and similar packings, of wood; pallets, box-pallets and other load boards, of wood; pallet collars of wood. GRI 2(a) provides that any reference in a heading to an article shall be taken to include that article when entered unassembled or disassembled.

The Explanatory Notes for heading 4415 provide a commentary on unassembled containers of this heading, as follows:

They may be unassembled or partly assembled, provided the wood is in sets of the parts necessary to make a complete container or an incomplete container having the essential character of a complete container. When wood is not in such sets, it is to be classified as sawn or planed wood, plywood, etc., as the case may be.

Unassembled specified pallets imported in exact numbers of pieces required to make a specific number of pallets are classifiable in heading 4415. However, the additional packing material used to frame the goods that the pallets will hold are not classified with the pallets. These uprights, crossbars and corner angles are classifiable separately in their condition as imported under their applicable headings.

The applicable subheading for the unassembled 44”x 154” pallet will be 4415.20.8000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for pallets, box-pallets and other load boards, of wood, other. The general rate of duty will be 10.7 percent ad valorem. This rate will remain the same in 2000.

The applicable subheading for the sawn uprights and crossbars and any other similar additional packing material will be 4407.10.0015, HTSUSA, which provides for wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or finger-jointed, of a thickness exceeding 6 mm; coniferous; not treated; mixtures of spruce, pine and fir (“S-P-F”). The general rate of duty will be Free.

The applicable subheading for the OSB aspenite corner angles will be 4410.11.0000, HTSUSA, which provides for particle board and similar board of wood; waferboard including oriented strand board. The general rate of duty will be Free.

Articles classifiable under subheading 4407.10.0015, HTSUSA, which are the products of Canada are subject to entry requirements based on the U.S./Canadian Softwood Lumber Agreement of 1996. All invoices of such articles must be annotated with the Canadian province of manufacture. If manufactured in Ontario, Quebec, British Columbia or Alberta, a permit is required.

This ruling applies to the unassembled 44”x 154” pallet described above. In the event that the subject goods, when imported into the United States, do not meet the description and the facts set forth in this ruling, the subject ruling letter will not be applicable to those goods. As such, in the event that the merchandise or the facts are modified in any way, you should resubmit a ruling request to cover the new situation. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by the Customs Service.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Paul Garretto at 212-637-7009.


Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division