CLA-2-44:OT:RR:NC:1:130
Mr. Jason Cunningham
Sonnenberg & Cunningham, PA
780 Fifth Ave. South
Suite 200
Naples, FL 34102
RE: The country of origin of multiple birch wood products
Dear Mr. Cunningham:
In your letter, dated September 19, 2018, you requested a binding tariff country of origin ruling on behalf of your client, Masco Cabinetry, LLC. The request was returned for additional information, which was received by this office on November 8, 2018. The ruling was requested on multiple solid birch wood products. Samples and product information were submitted for our review and will be retained for reference.
The first product, item 66147789, is a solid birch board with two pocket holes drilled at either end. Pocket holes are diagonal drill holes designed specifically for joinery and are generally drilled with specialized tooling. The board is rectangular and measures 0.8” thick by 3” wide by 20.5” long. In Russia, the birch logs are first cut into boards surfaced on 4 sides (S4S). The boards are then shipped to China where they are cut to length, sanded, stamped with the manufacturer code, and drilled.
The second product, item 66147828, is a solid birch board with a continuous, 12mm-wide groove running the length of one of the wide sides of the board. 20mm from each end of the board, there is a 15mm-wide notch that extends from the groove horizontally to the board’s nearer edge. The board measures 0.8” thick by 1.5” wide by 30” long. The S4S boards from Russia are shipped to China where they are cut to length, sanded, stamped, grooved, and notched.
The third product, item 66147821, is a solid wood board with a 12mm-wide groove that runs the length of one of the board’s wider sides. The same side also has a narrow line that runs the length of the board, parallel to the groove. The board has a continuous profile throughout its length, and measures 0.8” thick by 1.5” wide, by 18” long. The S4S lumber from Russia is cut to length, sanded, stamped, and grooved in China.
The fourth product, item 66171673, is a solid birch board that has been drilled with two pocket holes at either end of the board. It measures 0.8” thick by 1.5” wide, and 15” long. The S4S lumber from Russia is shipped to China where it is cut to length, sanded, stamped, and drilled.
The last product, item 66147973, is a rectangular, solid birch board measuring 0.8” thick by 3” wide by 30” in length. The S4S boards from Russia are shipped to China where they are cut to length, sanded, and stamped.
Each of the boards is used in the construction of cabinetry, and you indicate that none of the parts is further manufactured after importation into the United States. However, you do not identify what the parts are nor how they are incorporated into cabinetry.
As you note, Title 19, Code of Federal Regulations, section 134 defines the “country of origin” of an item as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must affect a ‘substantial transformation’ in order to render such other country the ‘country of origin’.” As you also note, “the courts have held that a substantial transformation occurs if a new and different article emerges having a distinctive name, character, or use.”
In each case, birch logs (heading 4403, Harmonized Tariff Schedule of the United States (HTSUS)) are cut into S4S boards (heading 4407, HTSUS) in Russia. Items 66147789 and 66147673 are pocket drilled twice on either end, rendering them dedicated for a specific use. This operation precludes classification of the boards in heading 4407, HTSUS, and renders them classifiable in another heading, such as 4421 or 9403, HTSUS (contemplating additional information about the identity of the cabinet parts). Because the operations performed in China convert these two items from boards (i.e., wood sawn lengthwise) of heading 4407, HTSUS, to items of another heading, a substantial transformation has occurred. The country of origin of items 66147789 and 66147673 is China.
For item 66147821, S4S boards are cut in Russia and then shipped to China for profiling and other finishing operations. As such, the boards, classifiable in heading 4407, HTSUS, are converted to wood continuously shaped throughout its length, classifiable in heading 4409, HTSUS. With this manufacturing, a substantial transformation has occurred. The country of origin of item 66147821 is China.
Item 66147828 is not unlike items 66147789 and 66147673. S4S boards (heading 4407, HTSUS) are cut in Russia and then shipped to China where they are continuously profiled throughout their length and then notched. As with items 66147789 and 66147673, this manufacturing precludes classification in heading 4407, HTSUS, and the notching precludes classification in heading 4409, HTSUS. This manufacturing renders the items classifiable in another heading, such as 4421 or 9403, HTSUS, (contemplating additional information about the identity of the cabinet parts) . The manufacturing of this item from an S4S board to a completed component that is not further manufactured after importation constitutes a substantial transformation. The country of origin of item 66147821 is China.
Finally, item 66147973 is cut into an S4S board in Russia, and is then shipped to China to be cut to length and sanded. These operations do not change the nature of the board. The Russian S4S board is classifiable in heading 4407, HTSUS, and the resulting item is also classifiable in heading 4407, HTSUS. In this case, there has been no substantial transformation. The country of origin of item 66147973 is Russia.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under headings in Chapters 44 and 94, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to the HTSUS classifications.
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 https://hts.usitc.gov/current.
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 [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division