OT:RR:CTF:CPMM H266918 KSG
Martin James
Neat Concepts Limited
F25, Hastingwood Trading Estate
Harbet Road
London, England N18 3HU
RE: Revocation of NY L86523, and NY N027781; tariff classification of surface covered plywood; back ply covered
Dear Mr. James:
This letter is in reference to two New York Ruling Letters (NY) L86523, dated August 18, 2005, and NY N027781, dated June 4, 2008, regarding the tariff classification of surface covered plywood known as Neatflex™ panels under the Harmonized Tariff Schedule of the United States (HTSUS).
In NY L86523, U.S. Customs & Border Protection (CBP) classified the birch plywood with fiberboard laminate to the back ply under subheading 4412.14.0560, HTSUS, which provided for not surface covered plywood with a face ply of birch. In NY N027781, CBP classified poplar plywood with a fiberboard covered back ply in subheading 4412.32.3170 HTSUS, which provided for not surface covered plywood with a face ply of other than certain species. Amendments to the HTSUS replaced subheading 4412.14.0560 with 4412.33.0670, HTSUS, and subheading 4412.32.3170, HTSUS with subheading 4412.33.3285, HTSUS. However, the terms “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” remain the same.
We have reviewed NY L86523 and NY N027781 and determined that the rulings are in error. Accordingly, for the reasons set forth below, CBP is revoking NY L86523 and NY N027781.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as
amended by section 623 of Title VI, notice proposing to revoke NY L86523 and NY N027781 was published on September 4, 2019, in Volume 53, Number 31, of the Customs Bulletin. No comments were received in response to this Notice.
FACTS:
In NY L86523, CBP classified a wood panel consisting of 15 mm thick medium density fiberboard (MDF) laminated to the back of a three-ply 4 mm thick plywood with a birch face ply. The fiberboard is deeply grooved at 5/16” intervals to facilitate the bending of the plywood.
In NY N027781, CBP classified a wood panel consisting of a three-ply 3 mm thick poplar plywood with a 15 mm thick MDF laminated to the back ply. The fiberboard is deeply grooved at 5/16” intervals.
ISSUE:
Whether the surface covered plywood described above are properly classified in subheading 4412.33.06, HTSUS, and in subheading 4412.33.32, HTSUS, or in subheading 4412.33.57, HTSUS.
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General rules of Interpretation (“GRIs”) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI's 2 through 6 may then be applied in order.
The 2018 HTSUS subheadings at issue are as follows:
4412: 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:
4412.33 Other, with at least one outer ply of nonconiferous wood of the species alder (Alnus spp.), ash (Fraxinus spp.), beech (Fagus spp.), birch (Betula spp.), cherry (Prunus spp.), chestnut (Castanea spp.), elm (Ulmus spp.), eucalyptus (Eucalyptus spp.), hickory (Carya spp.), horse chestnut (Aesculus spp.), lime (Tilia spp.), maple (Acer spp.), oak (Quercus spp.), plane tree (Platanus spp.), poplar and aspen (Populus spp.), robinia (Robinia spp.), tulipwood (Liriodendron spp.), or walnut (Juglans spp.):
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:
4412.33.06 With a face ply of birch (Betula spp.):
Other:
4412.33.32 Other:
Other:
Other:
Other:
4412.33.57 Other
The term “surface covered” as applied to articles of headings 4411 and 4412, is defined in Additional U.S. Note 1(c), Chapter 44, HTSUS, as “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.”
In NY L86523, CBP correctly concluded that the plywood was surface covered as defined by Additional U.S. Note 1(c), Chapter 44, but then incorrectly classified it at the eight-digit level in a subheading for articles that are not surface covered or if surface covered, the surface cover must be clear or transparent material that does not obscure the grain, texture, or markings of the face ply (as opposed to the back ply). In fact, the plywood was surface covered on the back ply with a surface covering that was not clear or transparent. Additional U.S. Note 1(c), Chapter 44 relates to the surface covering of the exterior surface; it is not limited to the face surface. Accordingly, the plywood described in NY L86523 is properly classified in subheading 4412.33.57, HTSUS.
Likewise in NY N027781, the plywood is surface covered as defined by Additional U.S. Note 1(c), Chapter 44, and was incorrectly classified in a subheading for articles that are not surface covered or if surface covered, the surface cover must be clear or transparent material that does not obscure the grain, texture, or markings of the face ply. In this case, the plywood was also surface covered on the back ply with a surface covering that is not clear or transparent. Accordingly, the plywood described in NY N027781 is properly classified in subheading 4412.33.57, HTSUS.
HOLDING:
Pursuant to GRIs 1 and 6, the plywood known as Neatflex™ panels described in NY L86523, dated August 18, 2005, and in NY N027781, dated June 4, 2008, is classified in subheading 4412.33.57, HTSUS. The column one, general rate of duty is eight percent ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided for at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY L86523 and NY N027781 are revoked in accordance with the above analysis. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the CUSTOMS BULLETIN.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division