CLA-2-44:OT:RR:NC:N2:230
Mr. Nimesh Sheth
USPLY Trading Co.
3101 NW 25th Ave.
Pompano Beach, FL 33069
RE: The tariff classification of plywood with one surface covered with a laminate from China
Dear Mr. Sheth:
In your letter dated December 1, 2008 and your resubmission dated January 7, 2009, you requested a tariff classification ruling. The sample which you submitted is being retained by this office.
The subject plywood will be imported from China in panels measuring 1220 mm x 2440 mm with a thickness of 5.2 mm, 12 mm, 15 mm, and 18 mm. The edges and ends of the plywood panels are open and square cut. A sample of the 18 mm panel was submitted. In the condition as imported into the United States, the plywood panels are material with multiple applications.
The plywood in question has a core made of several poplar veneer sheets all under 6 mm in thickness and the grains of successive layers disposed at an angle to each other. (The 18 mm submitted sample consists of 9 plies of poplar and one ply of birch.) One outer surface of the plywood has been overlaid with a white melamine laminate, and the other outer surface consists of an unfinished C grade birch veneer (Betula spp.), which is 0.3 mm thick. The laminate, which has a thickness of 0.7 mm, is composed of 0.1 mm paper, 0.13 kraft paper x 4 plies, and melamine resin and has been glued to the outer 1.5 thick poplar veneer. The laminate forms a decorative, durable, and waterproof surfacing material. (A sample of the melamine laminate was submitted.) The subject panels are engineered products having a laminate securely bonded to one outer surface.
You claim that the subject plywood has a face ply of birch, which is not surface covered; furthermore you claim that the outer surface with the white laminate is the back of the plywood. You propose that the subject plywood be classified under subheading 4412.32.0540, Harmonized Tariff Schedule of the United States (HTSUS), as plywood not surface covered, with a face ply of birch (Betula spp.), free of duty.
The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRIs), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require the remaining GRIs will be applied, in the order of their appearance.
The competing provisions for the subject plywood are subheadings 4412.32.05 and 4412.32.56, HTSUS. Subheading 4412.32.05, HTSUS, provides for the following:
Other plywood consisting solely of sheets of wood, each
ply not exceeding 6 mm in thickness:
Other, with at least one outer ply of nonconiferous
wood:
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:
With a face ply of birch (Betula spp.)
Subheading 4412.32.56, HTSUS, provides for the following:
Other plywood consisting solely of sheets of wood, each
ply not exceeding 6 mm in thickness:
Other, with at least one outer ply of nonconiferous
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)
In ruling NY R02554 dated October 6, 2005, we had occasion to discuss the term “face ply,” and we stated that the term “face ply” is generally understood to be the side or outer surface which has the highest grade or better grade. In this case, one side consists of melamine laminate and the other side consists of a birch veneer. Thus, we cannot simply compare veneer grades, but we need to compare all the characteristic of each side.
Subheadings 4412.32.05 to 4412.32.31, HTSUS, provide for plywood that either has not been surface covered or has been surface covered with a clear or transparent material which does not obscure the grain, texture or markings of the face ply.
Chapter 44, Additional U.S. Note 1(c) defines the term “surface covered” as follows:
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.
Clearly, the subject plywood has been surface covered with a laminate. Your proposal that the birch surface be considered the face of the plywood is not reasonable or commercially viable. The white laminate is a decorative, hard, and durable surfacing material, which modifies the characteristics of the plywood panel, in particular the durability and stability of the surface layer. We are not persuaded that the principal application in the United States of the subject plywood is one that would ignore and conceal the laminate surface.
A comparison of the extremely thin (0.3 mm), plain, and unfinished birch veneer on one outer surface with the decorative, durable, and waterproof laminate (0.7 mm thick) on the other outer surface (a 1.5 mm thick poplar veneer) leads us, reasonably, to conclude that the better side is the laminate side. It is the laminate outer surface that gives the panels special features and the essential character in their principal applications.
We find that the subject plywood panels have been surface covered; moreover, the material obscures the grain, texture, and markings of the underlying wood veneer. Thus, subheading 4412.32.05, HTSUS, is not applicable.
The applicable subheading for the subject plywood overlaid with melamine on one side will be 4412.32.5600, HTSUS, which provides for: Other plywood consisting solely of sheets of wood, each ply not exceeding 6 mm in thickness: Other, with at least one outer ply of nonconiferous 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). The rate of duty will be 8 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 http://www.usitc.gov/tata/hts/.
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 Paul Garretto at (646) 733-3035.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division