CLA-2-44:OT:RR:NC:1:130
Mr. Ronald Ige
R. Ige & Co., Inc.
4723 Marine Ave.
Lawndale, CA 90260
RE: The tariff classification of concrete form plywood panels from China
Dear Mr. Ige:
In your letter, dated October 23, 2017, you requested a binding tariff classification ruling on behalf of your client, ATS Building Products USA Corp. The ruling was requested on concrete form plywood panels that are surface covered with a high-density overlay (HDO), a medium-density overlay (MDO), or a phenolic resin film. Product information was submitted for our review.
The first and second panels consist of an 11-layer plywood constructed of birch face and back veneers and larch core veneers. No ply exceeds 6mm in thickness, and the grain of each ply runs at an angle to that of the subsequent plies. The panels are covered on the face and back with HDO and/or MDO, essentially paper impregnated with resin. The HDO and MDO fully cover and obscure the grain of the birch wood face and back. The third panel consists of the same plywood construction, but is instead coated on its face and back with an opaque black or brown phenolic resin film. The film fully obscures the grain of the birch wood face and back. At time of importation, the panels measure 4’ (W) x 8’ (L), and 3/8” to 1 1/8” in thickness. The panels are utilized to build concrete formwork.
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 HDO, MDO, and phenolic film are 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. Phenolic resin film, HDO, and MDO are all surface coverings. As the three materials obscure 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.
In your letter, you suggest that the imported plywood is classifiable in subheading 4418.40.0000, HTSUS, as Formwork (shuttering) for concrete constructional work. This conclusion is incorrect for two reasons. First, the ENs for heading 4418, HTSUS, explain that goods of the heading are used in the construction of any kind of building, and are in the form of assembled goods or as recognizable unassembled pieces. The instant plywood products are standard size sheets of a plywood construction; such sheets constitute a material with no dedicated use in the construction of a building. This particular subheading refers to recognizable, i.e., specific, formwork assemblies that are complete in their imported condition. Such assemblies would contain the exact number of panels and cut-to-shape pieces used to build a specific concrete form. The instant panels are not imported in this condition. Second, the ENs to heading 4418 are clear regarding the classification of surface-covered plywood: “plywood panels, even if surface treated for the purposes of concrete shuttering, are classified in heading 4412.” Similar products are classified in New York Rulings NY N288599, NY N247806, NY G80741, NY N078691, and NY N082159.
The applicable subheading for the multilayer wood flooring panels will be 4412.32.5700, 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: Other, with at least one outer ply of nonconiferous wood: Other. The rate of duty will be 8 percent ad valorem.
The instant panels may be subject to antidumping duties and countervailing duties (AD/CVD) for imports of hardwood plywood from China. Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at http://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at https://www.usitc.gov (click on “Antidumping and Countervailing Duty” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at http://addcvd.cbp.gov/.
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