CLA-2-44:OT:RR:NC:1:130
Ms. Nilsa Martinez
Dantzler, Inc.
Candelaria Arenas
Toa Baja, PR 00949
RE: The tariff classification of plywood panels from India
Dear Ms. Martinez:
In your letter, dated April 9, 2018, you requested a binding ruling. The request was returned to you for additional information, which was received by this office on May 16, 2018. The ruling was requested on two plywood products. Samples were submitted for our review and will be returned to you, as requested. The samples will be returned under separate cover.
The first panel consists of an 11-layer plywood constructed of Hevea brasiliensis (“rubber wood”) veneers. In your first submission, you stated that the face ply of the panel consists of Keruing, Okoume, or “White Face Veneer”. In your second submission, you state that the face ply is Hevea. No ply exceeds 6mm in thickness, and the grain of each ply runs at an angle to that of the subsequent plies. The panels measure 17mm in thickness and are covered on the face and back with phenolic film. The edges of the panel are painted with a waterproof acrylic sealant. These panels are stated to be used for concrete shuttering.
The second panel consists of an 11-layer plywood constructed of Hevea veneers. In your second submission, you state that the face consists of Hevea, while in both your first and second submissions, you also state that the face ply consists of Keruing. No ply exceeds 6mm in thickness, and the grain of each ply runs at an angle to that of the subsequent plies. The panels measure 14mm in thickness.
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 Harmonized Tariff Schedule of the United States (HTSUS) by offering guidance in understanding the scope of the headings and the General Rules of Interpretation (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 instant products meet the definition of “plywood” as set forth in the ENs to heading 4412 of the HTSUS, as they are constructed 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.” Plywood is specifically provided for in heading 4412, HTSUS, and these products are classified in that heading in accordance with GRI 1.
The phenolic film is a “surface covering” as described in Additional US Note 1(c) to Chapter 44, HTSUS:
The term "surface covered," as applied to the articles of headings 4411 and 4412, means that one or more exterior surfaces of a product have been treated with creosote or other wood preservatives, or with fillers, sealers, waxes, oils, stains, varnishes, paints or enamels, or have been overlaid with paper, fabric, plastics, base metal, or other material.
This note specifically provides that plywood of heading 4412, HTSUS, may be surface covered with a variety of materials. As the phenolic film obscures the grain of the wood, the panels will be classified as plywood that is surface covered with a material that obscures the grain of the face ply. See New York Rulings N288599, N247806, and NY M85625.
Each wood – Hevea, Keruing, and Okoume – is a tropical wood as defined in the ENs to heading 4421, HTSUS. “White Face Veneer” is an unclear term, as you explain that it means a face ply without surface covering, but state that the plywood surface covered with phenolic film has a face ply of “White Face Veneer”. Therefore, we decline to classify any plywood identified as having such a face ply.
The applicable subheading for the plywood panels with a face ply of Hevea or Keruing and with the phenolic film surface covering will be 4412.31.9200, HTSUS, which provides for Plywood, veneered panels and similar laminated wood: Other plywood consisting solely of sheets of wood (other than bamboo), each ply not exceeding 6 mm in thickness: With at least one outer ply of tropical wood: Other: Other. The rate of duty will be 8 percent ad valorem.
The applicable subheading for the plywood panels with a face ply of Okoume and with the phenolic film surface covering will be 4412.31.6100, HTSUS, which provides for Plywood, veneered panels and similar laminated wood: Other plywood consisting solely of sheets of wood (other than bamboo), each ply not exceeding 6 mm in thickness: With at least one outer ply of tropical wood:
Other: With at least one outer ply of the following tropical woods: Dark Red Meranti, Light Red
Meranti, White Lauan, Sipo, Limba, Okoumé, Obeche, Acajou d'Afrique, Sapelli, Virola,
Mahogany, Palissandre de Para, Palissandre de Rio or Palissandre de Rose. The rate of duty will be 8 percent ad valorem.
The applicable subheading for the plywood panels with a face ply Hevea or Keruing that is not surface covered will be 4412.31.5265, HTSUS, which provides for Plywood, veneered panels and similar laminated wood: Other plywood consisting solely of sheets of wood (other than bamboo), each ply not exceeding 6 mm in thickness: With at least one outer ply of tropical 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: Other: Not surface covered. The rate of duty will be 8 percent ad valorem.
In your submission, you describe a scenario where all wood species are harvested in India, the veneers are laminated together in India, and all other manufacturing is completed in India. You also stated that the phenolic film is imported from Korea or Finland. Pursuant to Part 134, Customs Regulations (19 CFR Part 134), Section 134.1(b), the country of origin is the country of manufacture, production or growth of any article of foreign origin entering the U.S. Further work or material added to a foreign article in another country must effect a substantial transformation in order to render the final product a good of the other country. In the manufacture of these plywood products, the substantial transformation occurs when the veneers are laminated into a plywood panel. Because this manufacturing occurs in India, the country of origin of the panels is India.
Articles classifiable under subheading 4412, HTSUS, which are products of India are currently entitled to duty-free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP, however, is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Web site at www.cbp.gov and search for the term “GSP”.
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