CLA-2-44:OT:RR:NC:2:230
Mr. Jeff U. Kim
Far East American, Inc.
5410 McConnell Ave.
Los Angeles, CA 90066
RE: The tariff classification of plywood from China
Dear Mr. Kim:
In your letter, dated January 31, 2013, you requested a tariff classification ruling on five plywood products. Photos and specifications were provided for our review.
The ruling was requested on five variations of Birch/Bintangor plywood. Each product will be imported in sheets measuring 4’ x 8’ x 5.2mm. Each is constructed of five veneer plies, and the grain of each ply runs at an angle to that of the successive ply. You state that that each sheet has one outer ply of Birch, one outer ply of Bintangor, and a core of poplar or eucalyptus. The Birch outer ply for each product is grade E, while the Bintangor grade varies, specifically BB Face, CC Face, Overlay Face, Utility Face, and Reject/Back. The sheets are not surface covered. You identify the uses of the plywood to include underlayment, furniture, construction, decoration, and packaging.
The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRIs), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require the remaining GRI will be applied, in the order of their appearance.
Both the Birch and Bintangor are non-coniferous woods. While the Bintangor is generally considered to be a tropical wood, it is not a tropical wood for classification purposes. Bintangor is not one of the tropical woods enumerated in Subheading Note 2 to Chapter 44, Harmonized Tariff Schedule of the United States (HTSUS).
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs. While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989).
The EN’s to heading 44.12 identify plywood as “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…” Each of the five products is within the scope of the term “plywood”. GRI 1 also dictates that the classification of each product is determined by the identity of its face ply.
The term “face ply” is not defined in the HTSUS or in the ENs. When a tariff term is not defined by the HTSUS or the legislative history, its correct meaning is its common or commercial meaning. See Rocknel Fastener, Inc. v. United States, 267 F.3d 1354, 1356 (Fed. Cir. 2001). "To ascertain the common meaning of a term, a court may consult 'dictionaries, scientific authorities, and other reliable information sources' and 'lexicographic and other materials.'" Id. (quoting C.J. Tower & Sons of Buffalo, Inc. v. United States, 673 F.2d 1268, 1271, 69 C.C.P.A. 128 (C.C.P.A. 1982); Simod Am. Corp. v. United States, 872 F.2d 1572, 1576 (Fed. Cir. 1989)).
Headquarters Ruling HQ044702, dated March 9, 2009, defines “face ply” in accordance with the International Wood Products Association (IWPA) Procurement Standard for Imported Hardwood Plywood and the APA – Engineered Wood Association Panel Handbook and Grade Glossary: “the term ‘face ply’ means the side or outer surface which has the highest grade or better grade.” This definition is also consistent with the Voluntary Product Standard for Structural Plywood (PS-1-09) and the American National Standard for Hardwood and Decorative Plywood (ANSI/HPVA HP-1-2009), which define “face” as “the side of a panel that is of higher veneer quality on any panel whose outer plies are of different veneer grades”, and “the better side of any plywood panel in which the outer plies are of different veneer grades”, respectively.
You state that the Birch outer ply is grade E by the ANSI/HPVA HP-1-2009 hardwood plywood standard, while the Bintangor is graded BB Face to Reject/Back by the IWPA hardwood plywood standard. While we recognize that there is a broad range of quality within the lower grades of each scale, we will determine the classification by the grade rating and not by the relative quality of each individual panel within those grades.
As the outer ply with the higher grade constitutes the face ply, where the Bintangor has the higher grade, the Bintangor is the face ply. Where the Birch has the higher grade, the birch is the face ply. And, finally, where the Birch and Bintangor grades are generally equivalent, neither outer ply would give the panel its essential character. In this case, as explained in New York Ruling N026645, dated May 9, 2008, classification would be determined in accordance with GRI 3(c), or the last classification occurring in the HTSUS, i.e., the Bintangor.
The applicable subheading for plywood panels with an outer ply of E grade Birch and a higher grade outer ply of Bintangor will be 4412.32.3175, HTSUS, which provides for Plywood, veneered panels and similar laminated wood: Other plywood consisting solely of sheets of wood, each ply not exceeding 6 mm in thickness: Other, with at least one outer ply of nonconiferous wood: Not surface covered, or surface covered with a clear or transparent material which does not obscure the grain, texture or markings of the face ply: Other: Other: Other: Other: Not surface covered. The rate of duty will be 8 percent ad valorem.
The applicable subheading for the plywood panels with an outer ply of E grade Birch and a lower grade outer ply of Bintangor will be 4412.32.0540, HTSUS, which provides for Plywood, veneered panels and similar laminated wood: Other plywood consisting solely of sheets of wood, each ply not exceeding 6 mm in thickness: Other, with at least one outer ply of nonconiferous wood: Not surface covered, or surface covered with a clear or transparent material which does not obscure the grain, texture or markings of the face ply: With a face ply of Birch: Other: Not surface covered. The rate of duty will be free.
The applicable subheading for the plywood panels with an outer ply of E grade Birch and an equivalent grade outer ply of Bintangor will be 4412.32.3175, HTSUS, which provides for Plywood, veneered panels and similar laminated wood: Other plywood consisting solely of sheets of wood, each ply not exceeding 6 mm in thickness: Other, with at least one outer ply of nonconiferous wood: Not surface covered, or surface covered with a clear or transparent material which does not obscure the grain, texture or markings of the face ply: Other: Other: Other: Other: Not surface covered. The rate of duty will be 8 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
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 Laurel Duvall at (646) 733-3035.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division