CLA-2-44:OT:RR:NC:2:230
Ms. Gloria I. Aviles-Cole
Brandywine International Hardwood
115-C Twinbridge Drive
Pennsauken, NJ 08110
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of hardwood engineered flooring from Guatemala.
Dear Ms. Aviles-Cole:
In your letter received in this office on September 18, 2009 and your resubmission with additional information of November 10, 2009, you requested a tariff classification ruling on hardwood engineered flooring from Guatemala. Four samples were submitted and are being retained by this office.
The representative samples measure 11 mm thick x 80 mm wide x 295 mm long and 11mm thick x 80 mm wide x 370 mm long. Each submitted sample represents wood flooring with a face ply of the following species: white oak, balsamo, cola de morano, and guapinol. The core and the back of the flooring panels are made of birch.
In your letter, you explained that 7-ply, 9 mm thick, unfinished birch plywood is imported from Russia into Guatemala in 5’ x 5’ sheets. In Guatemala, the birch plywood is used as a platform on top of which is laminated a face veneer of one of the above listed species.
In Guatemala, the manufacturing process begins by taking the Russian birch plywood and ripping it into 90 mm strips. The plywood strips are scored on the back with saw kerfs. An approximately two (2) millimeter thick face ply is laminated to the Russian birch plywood, and then the plywood strips are tongued and grooved on the edges and ends. The face ply is finished with clear or transparent materials.
You have also explained that white oak lumber is imported into Guatemala from the United States. In Guatemala, the white oak lumber is dried, ripped to width, and planed to thickness. The U.S. white oak (2 mm thick) is used as a face ply on the Russian birch plywood.
The applicable subheading for the hardwood engineered flooring with a face ply of white oak, balsamo, cola de morano, and guapinol will be 4412.32.3125, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Plywood, veneered panels and similar laminated wood: 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: Other : Wood flooring. The rate of duty will be 8 percent ad valorem.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, as follows:
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if—
(i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;
(ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and—
(A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or
(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
For the non-originating materials, General Note 29 (n), Chapter 44 requires “A change to heading 4401 through 4421 from any other heading.”
The Russian birch plywood imported into Guatemala is classifiable under heading 4412, HTS. The hardwood plywood flooring in the condition as imported into the United States is also classifiable under heading 4412, HTS. Thus, the non-originating material (Russian plywood) used in the production of the wood flooring does not undergo an applicable change in tariff classification.
The merchandise in question does not qualify for preferential treatment under DR-CAFTA because (a) it will not be wholly obtained or produced entirely in the territory of one or more DR- CAFTA countries; (b) one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 29(n) HTSUS; and (c) it will not be produced entirely in the territory of one or more of the DR-CAFTA parties exclusively from originating materials.
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