CLA-2-44:OT:RR:NC:N1:130
Ms. Andrea Abraham
Meeks, Sheppard, Leo, & Pillsbury
4 Corporate Drive
Suite 292
Shelton, CT 06484
RE: The tariff classification of multilayer wood panels from China
Dear Ms. Abraham:
On February 11, 2021, you submitted a request for a binding classification ruling on behalf of your client, Taraca Pacific, Inc. The request was returned to you for additional information, which was received by this office on April 7, 2021. The ruling was requested on multilayer wood panels from China. Samples and product information were submitted for our review.
The products under consideration are three uncoated, multilayer wood panels. The panels are fully manufactured in China with a core of China-origin poplar and face and back plies of Australia-origin hoop pine (Araucaria cunninghamii, a coniferous wood). Each panel is sanded on both face and back. The first product is an 18mm-thick panel constructed of 11 wood layers (or plies) glued together, one on top of the next, with the grains of the successive layers oriented at 90-degree angles. No layer exceeds 6mm in thickness. The second product is a 5mm-thick panel of the same construction, but which, instead, consists of five wood layers. The third product is a 2.7mm-thick panel that is constructed of 4 layers. Nearly the entire thickness of the panel consists of three layers with the grains of the layers oriented at 90-degree angles. This panel is overlaid on one side with a hoop pine veneer (layer) that appears to measure less than 0.2mm in thickness. The grain of this veneer is parallel to that of the layer beneath it.
Each of the three panels meets the definition of “plywood” as set forth in the Explanatory Notes to the Harmonized Tariff Schedule of the United States (HTSUS) for heading 4412: panels “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.” While the 2.7mm-thick panel has a fourth layer oriented parallel to a successive layer, the layers are still “generally disposed so that the grains of successive layers are at an angle,” and the panel maintains the properties of plywood. Heading 4412 provides specifically for plywood. Therefore, in accordance with General Rule of Interpretation 1, the panels will be classified therein.
In your letter, you suggest that the 18mm- and 5mm-thick panels are classifiable in subheading 4412.39.5050, HTSUS, and that the 2.7mm-thick panels are classifiable in subheading 4412.99.9500, HTSUS. We disagree with both suggestions. None of the three panels are coated with any material, whether transparent or otherwise. Subheading 4412.39.5050, HTSUS, provides for panels that are 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 other words, subheading 4412.39.5050, HTSUS, provides for panels that are surface covered with an opaque material that obscures the grain of the wood. As these panels are not surface covered with any material, and the grain is fully apparent, this subheading is precluded. As for the 2.7mm-thick panel, as we note above, despite the fourth veneer applied to one side of the panel, the panel consists predominantly of three layers that meet the definition of plywood. The panel retains the properties of plywood and is therefore considered plywood, not a veneered panel, as provided for in 4412.99.9500, HTSUS.
The applicable subheading for the multilayered panels will be 4412.39.4062, 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: 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: Other: Fully sanded on at least one face, but not further processed. The rate of duty will be 8 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4412.39.4062, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 441239.4062, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
The merchandise in question may be subject to antidumping duties and countervailing duties (AD/CVD) for hardwood plywood from China (A570-051, C570-052). 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 https://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/trade_remedy/documents/orders.xls, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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. 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