CLA-2-44:OT:RR:NC:2:230
Mr. James E. King
Affiliated Custom Brokers USA Inc.
193 West Service Road
P.O. Box 2421
Champlain, NY 12919
RE: The tariff classification of diced wood pellets from Canada
Dear Mr. King:
In your letter dated September 19, 2012, you requested a tariff classification ruling on behalf of your client, Tafisa Canada. The ruling was returned to you for additional information which was resubmitted to this office on October 16, 2012.
The ruling was requested on “Woodforce Engineered Diced Pellets”. Two samples of the product were submitted for our review, and will be retained for reference purposes.
The pellets are cut to generally rectangular, but not uniform, dimensions; they measure approximately 5mm square. They are fibrous pieces that range from paper thickness to a thickness of approximately 5mm. The pieces are not dense and easily break into “layers” and fiber. You explain that the Woodforce pellets are manufactured by cutting and dicing medium density fiberboard (MDF) panels. You note that the panels are constructed of wood fiber, thermosetting resins (melamine urea formaldehyde (MUF), and an organic polymer. The polymer largely replaces the MUF that would be standard in an MDF panel, and you state that the polymer acts as a dispersant when the pellets are added to molten thermoplastics; the polymer accounts for the uncharacteristic lack of density in the MDF. The diced fiberboard is added to the plastics as a reinforcing material.
In your letter, you argue for classification of the Woodforce pellets in subheading 4401.39.4090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms: Other. This classification does not describe the instant product. The Woodforce product is not composed of sawdust or wood waste agglomerated into pellets. It is an MDF board that is cut down into very small four-sided pieces. The Explanatory Notes (ENs) to heading 4411, which covers fiberboard of wood, whether or not bonded with resins or other organic substances, state
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 (emphasis added) or formed to shapes other than square or rectangular and whether or not they have been worked at the surface, the edge or the end, 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.
The instant product is merely cut fiberboard and remains classifiable in heading 4411.
The applicable subheading for the Woodforce Engineered Diced Pellets will be 4411.12.1000, HTSUS, which provides for Fiberboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances: Medium density fiberboard (MDF): Of a thickness not exceeding 5 mm: Not mechanically worked or surface covered. The rate of duty will be free.
You have also asked whether the product is eligible for NAFTA treatment. Because the MDF panel is classified in heading 4411, HTSUS, and the pellets are also classified in heading 4411, HTSUS, the product does not meet the tariff shift requirement for NAFTA eligibility. However, because the product is subject to an unconditionally free rate of duty, there would be no benefit from such eligibility.
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