CLA-2-44:OT:RR:NC:1:130
Mr. Eric J. Verburg
STTAS
2031 S. Centennial Ave.
Aiken, SC 29803
RE: The tariff classification of acoustic wall panels from Canada
Dear Mr. Verburg:
In your letter, dated February 5, 2020, you requested a binding tariff classification ruling on behalf of your client, Fini U.V. International Inc. The ruling was requested on acoustic wall panels. Photos and product information were submitted for our review.
The technical data sheet and photos you have presented depict a rigid panel that measures approximately 11 ¾” wide by 47.75” long, and 2” in thickness. The panels consist of four layers. On the panel face are rectangular, 3.3mm- and 4.8mm-thick walnut or white oak wood strips. The decorative wood strips, which vary in width and length, are arranged in a staggered fashion - not unlike bricks – with 7.6mm spaces between them. The staggered positioning of the wood strips allows the panels to “interlock” into a continuous surface when installed. The wood strips are bonded onto a 6.4mm-thick sheet of polyester fiber felt. The felt surface can be seen between the wood strips. The felt layer is bonded to a 38mm-thick layer of sturdy paperboard honeycomb. The three layers are bonded onto a 3mm-thick backing of medium density fiberboard (MDF). The felt and MDF layers “close off” the honeycomb cells. The panels are used as a wall covering enhanced with acoustic properties.
In your letter, you suggest that the panels are classifiable in subheading 6307.90.9889, Harmonized Tariff Schedule of the United States (HTSUS), and cite New York Ruling N188055 as justification. We disagree. Ruling N188055 classifies a panel consisting of felt sandwiched between a woven textile and ethylene vinyl acetate plastic sheeting. The instant product has a significantly different structure than the product in N188055, and the two have only acoustic properties in common. You assert that the panels are composite goods that are classifiable in accordance with General Rule of Interpretation 3(b) (“GRI 3(b)”), with the felt imparting the essential character of the panel. While we agree that the panels are constructed of multiple materials classifiable in multiple tariff headings, we do not agree that the panel constitutes a composite good wherein one material determines the classification of the product. Instead, the layers form a new and unique article classifiable in accordance with GRI 1.
The Harmonized Commodity Decription 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 (August 23, 1989).
Heading 4418, HTSUS, provides for “Builders’ joinery and carpentry of wood, including cellular wood panels and assembled flooring panels”. The ENs explain that goods of heading 4418, HTSUS, are recognizable wood articles utilized in the construction of a building, and the heading language specifically includes “cellular wood panels”. Headquarters Ruling 964683, dated August 5, 2002, provides guidance as to the definition of “cellular wood panels”. The ruling notes that “(t)he essence of the phrase ‘cellular wood panel’ as used in the tariff schedule and as described in the ENs, indicates to Customs that the merchandise properly classified in heading 4418, HTSUS, is wood panels that have one or multiple ‘cells’.” Ruling 964683 further considers the preceding language of the Tariff Schedule of the United States (TSUS), which identified cellular panels as “rigid assemblies bonded together with adhesive substances with both sides or faces consisting of veneer, plywood, lumber, wood-veneer panels, hardboard, wood particle board or other board composed of vegetable fibers, and with a core of hollow, honeycomb, or sponge-like construction.”
These descriptions clearly describe the instant acoustic wall panels. The wood strips on the front of each panel are rigid and form the visible wall surface when installed. The MDF layer forms the rigid panel backing. Between these wood layers are two materials with acoustic properties, the felt and the honeycomb layer. We note that, not unlike a hollow core door, the honeycomb structure also controls movement of sound waves. As such, the instant panels, which consist of rigid wood assemblies bonded with adhesive to a core of honeycomb-structured paperboard and felt sheeting, constitute “cellular wood panels”.
The applicable subheading for the acoustic wall panels will be 4418.99.9050, HTSUS, which provides for Builders’ joinery and carpentry of wood, including cellular wood panels and assembled flooring panels; shingles and shakes: Other: Other: Other: Other: prefabricated partitions and panels for buildings. The rate of duty will be 3.2 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 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