CLA-2-44:OT:RR:NC:1:130
Mr. Sam Lim
Far East American, Inc.
5410 McConnell Ave.
Los Angeles, CA 90066
RE: The tariff classification of multilayer wood panels from Indonesia
Dear Mr. Lim:
In your letter, dated February 20, 2020, you requested a binding tariff classification ruling. The ruling was requested on multilayer wood panels. A sample was submitted for our review and will be retained for reference.
This ruling concerns the classification of a laminated, multilayer wood panel consisting of plywood, medium density fiberboard (MDF) cross-plies, birch veneer, and a printed paper overlay. The panels measure approximately 4’ wide x 8’ long x 12.7mm in thickness. The center three plies consist of falcata (Albizia spp.), rubberwood (Hevea spp.) – both tropical woods - or a mixture of the two. Each ply measures approximately 2mm-3mm in thickness. The plies are laminated together and each is oriented such that the grain runs at a 90-degree angle to the grains of the subsequent plies. The three-ply panel is then overlaid on the face and back with a 3mm-thick sheet of MDF. While the sample has a birch veneer applied to both the face and back MDF layers, you indicate that the imported product will have a birch veneer applied only to the panel back. Finally, the MDF on the face side of the panel is overlaid with an opaque, coated paper that is printed with a woodgrain pattern.
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 panel meets the definition of “plywood” as set forth in the ENs to heading 4412 of the HTSUS, as it is 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 the panel is classified in that heading in accordance with GRI 1. The MDF cross-plies do not impact the identity of this panel as plywood. The panel maintains the properties of plywood and is merely enhanced by the MDF plies.
Both the paper and MDF layers applied to the panel face constitute “surface coverings” 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, including paper. The paper and MDF both fully obscure the grain of the face of the plywood. As such, the panel will be classified as plywood that is surface covered with a material that obscures the grain of the face ply. See New York Rulings N298990 and N288599.
Because the plywood face is falcata or rubberwood, while the panel back is birch veneer, two subheadings equally describe the panel: 4412.31 and 4412.33, HTSUS. Subheading 4412.31 provides for plywood with at least one outer ply of tropical wood (the face outer ply is rubberwood or falcata that has been surface covered with an opaque material). Subheading 4412.33 provides for plywood with “at least one outer ply of nonconiferous wood of the species…birch (Betula spp.)...” The back outer ply of the panel is birch veneer.
Tariff classification under the HTSUS is governed by the principles set forth in the GRIs, taken in order. GRI 3(a) states that, when goods are classifiable under two or more headings (or subheadings, as provided by GRI 6), “the heading which provides the most specific description shall be preferred to headings providing a more general description.” In the instant panel, the tropical face ply is overlaid with MDF and woodgrain decorative paper; this side is clearly intended to be the visible side of the panel. Because classification of goods of heading 4412 is ultimately based on the identity of the face ply, we find that the tropical wood face ply determines the more specific subheading. Therefore, we conclude that the panel is classifiable in subheading 4412.31, HTSUS.
The applicable subheading for the multilayer wood panels 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 (than 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 (than with at least one outer ply of specified tropical woods). The rate of duty will be 8 percent ad valorem.
While articles classifiable under subheading 4412.31.9200, HTSUS, may be entitled to duty free treatment under the Generalized System of Preferences (GSP), goods of Indonesian origin are not eligible for duty-free treatment. Please see General Note 4(d) to the HTSUS.
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