CLA-2-44:OT:RR:NC:N1:130
Mr. Daniel Weir
Weir Plywood and Door LLC
219 N. First Street
Pacific, MO 63069
RE: The tariff classification and country of origin of wood drawer components
Dear Mr. Weir:
In your letter, dated August 4, 2021, you requested a binding ruling for tariff classification and country of origin. The ruling was requested on wood drawer components. Product information and photos were provided for our review.
The wooden drawer components are made from poplar (a non-coniferous wood) boards from China. The wood boards are surfaced on four sides (“S4S”). “S4S Short Boards” measure 18” or 21” in rough-cut length by 2” or 10” in width by 5/8” or 3/4" in thickness. The “S4S Short Boards” are unfinished and may be either solid or edge-glued. “S4S Long Boards” measure 8’ in length by 2” or 10” in width by 5/8” or 3/4" in thickness. The “S4S Long Boards” are unfinished, edge-glued and finger-jointed. In your letter, you indicated these S4S boards will be imported from China to Vietnam for further processing into wood drawer components.
In your letter, you describe the manufacturing process that will take place in Vietnam. In Vietnam, the “S4S Short Boards” will be shaped with radius-cut corners on one edge, and with a 1/4" wide by 1/4" deep groove on the panel face, 1/2" from the opposite edge. The shaping runs the length of the panel, parallel to the grain. The length is then precision-trimmed to customer specification. The boards will be sanded and may be UV-coated or unfinished. After importation, the customer will further process the components, e.g., by dovetailing and/or finishing. In Vietnam, the “S4S Long Boards” will be shaped with same radius-cut corners on one edge and a groove as the “S4S Short Boards”. The “S4S Long Boards” will be sanded and UV-coated. After importation, the customer will cut the panels to length and dovetail them, as necessary.
The classifications of the final products out of Vietnam were determined in ruling N320444 as follows:
The applicable subheading for the solid wood short panels that are unfinished will be 4409.29.9100, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, molded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed: Nonconiferous: Other: Other: Other. The rate of duty will be free.
The applicable subheading for the solid wood short panels that are UV-coated and/or edge-glued will be 4421.99.9780, HTSUS, which provides for Other articles of wood: Other: Other: Other: Other: Other. The rate of duty will be 3.3 percent ad valorem.
The applicable subheading for the long panels will be 4421.99.9780, HTSUS, which provides for Other articles of wood: Other: Other: Other: Other: Other. The rate of duty will be 3.3 percent ad valorem.
Your request also concerns the country of origin of the final products out of Vietnam. Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry of origin" means the country of manufacture, production or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908). We must therefore determine if or where a substantial transformation of materials occurs in order to determine country of origin.
Solid S4S boards are classified in heading 4407, HTSUS. Heading 4407 provides for solid wood sawn lengthwise along the grain (may be referred to as “lumber”), edge-glued S4S boards are classified in 4421.99.9400, HTSUS, which provides for edge-glued lumber. Both are multiuse materials with no dedicated use. The profiling (radius-cut edge and groove) of the S4S boards in Vietnam converts the wood lumbers into wood panels continuously shaped throughout their lengths. This manufacturing process constitutes substantial transformation as the resulting products are no longer merely undedicated, multiuse materials; they are new and different articles with a distinctive name, character or use – continuously shaped wood panels for construction of wood drawers. The country of origin of continuously shaped wood panel is Vietnam.
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.
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