CLA-2-44:OT:RR:NC:1:230
Mr. Markus V. Schaefer
Global Product Sourcing, LLC
7 Mary Way
Rancocas Business Park
Hainesport, NJ. 08036
RE: The tariff classification plywood with paper overlay from China
Dear Mr. Schaefer:
In your letter, received April 4, 2017, you requested a binding tariff classification ruling. The ruling was requested on plywood paneling that has been overlaid with printed paper. Samples were submitted for our review and will be retained for reference.
Two samples were submitted for our review. The first measures 2.7mm in thickness, while the second measures 5mm in thickness. Both are imported in 4’ x 8’ panels. The 2.7mm product consists of three layers of non-coniferous wood laminated together with the grains of each layer running at a 90 degree angle to that of the subsequent layers. The 5mm product consists of five layers of non-coniferous wood, the grains of which are oriented in the same manner as those of the 2.7mm product. Both panels are grooved at regular intervals on their faces. The paper overlay is applied to the face of each panel and is printed with a wood grain.
Both panels meet the definition of “plywood”, which is specifically provided for under heading 4412, Harmonized Tariff Schedule of the United States (HTSUS). “Plywood” is defined in the Explanatory Notes to the Harmonized System (ENs) as “consisting 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.” The instant panels consist of three and five wood layers, and the grain of each layer runs at a 90 degree angle to that of the successive layers. Therefore, the panels are of a plywood construction and are classifiable in heading 4412.
The paper overlay meets the definition of a surface covering, as set forth in Additional U.S. Note 1(c) to Chapter 44. The note states:
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.
Paper is specifically noted as a surface covering applicable to goods of heading 4412. The paper overlays the surface of the plywood, enhancing its properties, and it obscures the grain of the wood beneath it.
Additionally, Note 4 to Chapter 44, HTSUS, provides that the face grooving does not preclude classification in heading 4412. The note states:
Products of heading 4410, 4411 or 4412 may be worked to form the shapes provided for in respect of the articles of heading 4409, curved, corrugated, perforated, cut or formed to shapes other than square or rectangular or submitted to any other operation provided it does not give them the character of articles of other headings.
Grooving is a type of continuous shaping provided for in heading 4409, HTSUS. Therefore, all operations performed in the manufacture of the panels provide for classification in heading 4412, HTSUS.
In your letter, you inquire as to whether the panels may be classifiable under subheading 4412.32.3165, HTSUS. The instant panels cannot be classified in subheading 4412.32.3165, HTSUS, because a requirement of that classification is that the panels must be “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.” Your product meets the definition of “surface covered”, but the panels are surface covered with a paper that obscures the grain of the wood beneath it.
The applicable subheading for the non-coniferous plywood panels overlaid with paper 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.
You also inquire as to the classification of the same panels, but constructed with both outer plies consisting of a coniferous wood, such as Radiata pine. You suggest that the panels would be classifiable under subheading 4412.39.4059, HTSUS. The panels cannot be classified in this subheading for multiple reasons. First, a requirement of that classification is that the panels must be “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.” Your product meets the definition of “surface covered”, but the panels are surface covered with a paper that obscures the grain of the wood beneath it. Second, the panels would have to be constructed of Agathis spp. wood. Radiata pine, as well as most common coniferous woods, is not of the Agathis species.
The applicable subheading for the coniferous plywood panels overlaid with paper will be 4412.39.5050, 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 both outer plies of coniferous wood: Other: Other. The rate of duty will be 5.1 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 the World Wide Web at https://hts.usitc.gov/current.
You have asked whether this product is subject to antidumping duties or countervailing duties (AD/CVD). 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 the Department of Commerce at http://enforcement.trade.gov/intro/index.html. 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/trade_remedy/731_ad_701_cvd/investigations.htm, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at http://adcvd.cbp.dhs.gov/adcvdweb/.
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