CLA-2-44:OT:RR:NC:1:130
Mr. Mauricio A. Manzur
Global Pacific, LLC
1022 Sunshine Ct.
Westfield, IN 46074
RE: The tariff classification of continuously shaped wood panels from China
Dear Mr. Manzur:
In your letter, dated February 5, 2020, you requested a binding tariff classification ruling. The ruling was requested on V-groove/nickel gap shiplap panels and nickel gap shiplap panels. Photos and product information were submitted for our review.
The products described in your submission are wood panels measuring approximately ¾” in thickness, 16’ in length, and with widths ranging from 3.5” to 7.25”. The panels are constructed of edge-glued Radiata pine wood that is milled with a continuous profile throughout its length. One panel has a profile that is a combination of tongue/groove and shiplap joinery. The panel is reversible; with one side facing, the installed panel edges are flush, while, with the other side facing, there is a small gap between panel edges. The second profile is a combination of tongue/groove and shiplap joinery with beveled edges. These panels are also reversible. The beveled edges, when installed, form V-shaped recesses between the panels. The reverse side of the assembled panels has the appearance of shiplap with small gap spacing between the panel faces. One photo provided also shows a panel with two equally spaced grooves on one face of the panel. You state that the panels are finished with water-resistant gesso and a final antifungal coating. You identify the panels as being for outdoor use, primarily as porch or soffit ceilings.
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 Harmonized Tariff Schedule of the United States (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 “woodwork, including that of wood marquetry or inlaid wood, used in the construction of any kind of building, etc., in the form of assembled goods or as recognisable unassembled pieces…” The instant panels are recognizable wood articles, i.e., ceiling or siding panels, utilized in the construction of a building.
While the wood does have a continuous profile, classification in heading 4409, HTSUS, is precluded due to the edge-gluing and gesso and antifungal coatings. The language of heading 4409 provides only for wood that is end-jointed to increase length. The ENs to heading 4409 also explain that goods classified therein are constructed of timber, not wood that has been engineered in a manner such as edge-gluing. Furthermore, The ENs for heading 4409 specifically exclude “(w)ood which has been surface worked beyond planing or sanding, other than painting, staining or varnishing (e.g., veneered, polished, bronzed, or faced with metal leaf).” The gesso and antifungal coatings constitute surface working beyond painting, staining, or varnishing.
The applicable subheading for the continuously shaped, edge-glued panels will be 4418.99.9095, 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: Other. The rate of duty will be 3.2 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4418.99.9095, HTSUS, unless specifically excluded, are subject to an additional 25 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 subheading 4418.99.9095, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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