CLA-2-44:OT:RR:NC:N5:130
Mr. Erik Smithweiss
GDLSK, LLP
599 Lexington Avenue
New York, NY 10022
RE: The tariff classification of coated wood boards, siding, and moldings from Vietnam, Cambodia, and Indonesia
Dear Mr. Smithweiss:
In your letter, dated October 11, 2023, you requested a binding tariff classification ruling on behalf of your client, Youmu PR Trading Limited. Your request was returned to you for additional information, which was submitted to our office on December 12, 2023. The ruling was requested on wood boards, siding, and moldings. Product information and samples were submitted for our review.
The products under consideration include the following:
Quarter-round moldings: Solid wood moldings in various lengths, measuring 16.67mm x 16.77mm. The quarter round has the profile of a quarter-circle, with two sides forming a right angle. The quarter-rounds are made of solid pine wood (specific species not identified) that has been continuously shaped throughout its length with the quarter-circle profile. The moldings have been surface covered with a gesso-like coating. Quarter-round moldings are commonly used in the construction of buildings, typically with flooring.
Shoe moldings: The shoe moldings are similar to the quarter-round moldings in shape, except they are wider, measuring 11.9mm x 18.26mm. They are also made of continuously shaped, solid pine wood, and are surface-covered with a gesso-like coating. Shoe moldings are also commonly used in the construction of buildings.
S3S boards: While you identify the S3S (surfaced (i.e., planed) 3 sides) boards as moldings, they are not. The wood boards are merely rectangular and are not dedicated for any purpose by their shaping. You indicate that the boards will be 18mm thick, and will be imported in several widths, including 63.5mm, 88.9mm, 114.3mm, 139.7mm, and 184.15mm. The boards are solid pine wood and are surface-covered with a gesso-like coating.
Reversible center V siding board: This siding board measures approximately 18mm x 138.12mm, is shaped with a continuous V-groove along its face and a V-joint (tongue and groove plus V) along its edges. The board is constructed of solid pine wood and is coated with a gesso-like coating. The siding is used as a wall surface in the construction of a building.
Shiplap siding (Nickel-gap siding): This siding board measures approximately 14.3mm x 136.5mm. It is continuously shaped along one edge with a rabbet or step cut and along the other edge with an inverted rabbet cut. The board is constructed of solid pine wood and is coated with a gesso-like coating. The siding is used as a wall surface in the construction of a building.
In your letter, you argue that each of the goods is classifiable in subheading 4409.10.4010, 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: Coniferous: Other: Wood moldings: Standard wood molding: Pine (Pinus spp.): End-jointed. We disagree.
The S3S boards are not classifiable in heading 4409 because they are not continuously shaped. They are merely undedicated, rectangular boards. The remaining products, however, are continuously shaped. That said, none are classifiable in heading 4409. Each of the products is coated with a gesso-type coating that is applied by extruder. You identify the coating as a paint primer. While the coating does function as a primer, it is more than merely a primer. The coating is a surface preparation that provides an entirely new, smooth surface to each of the items.
The Harmonized Commodity Description and Coding System Explanatory Notes provide justification for the classification of these goods. The Explanatory Notes (ENs), although not dispositive nor legally binding, provide a commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The ENs to Chapter 44 state that
Generally speaking, throughout the Nomenclature, the classification of wood is not affected by treatment necessary for its preservation, such as seasoning, superficial charring, priming and stopping, or impregnation with creosote or other wood preservatives (e.g., coal tar, pentachlorophenol (ISO), chromated copper arsenate or ammoniacal copper arsenate); nor is it affected by reason of being painted, stained or varnished.
This language indicates that classification is not affected by preservation, painting, staining, or varnishing. It follows that classification is affected by any treatment beyond those listed. The ENs to heading 4409 specifically exclude “Wood which has been surface worked beyond planing or sanding, other than painting, staining or varnishing (e.g., veneered, polished, bronzed, or faced with metal leaf)...” US Customs and Border Protection has long and consistently maintained that any treatment beyond paint, stain, or varnish precludes classification in headings 4407 or 4409. Gesso is specifically named in multiple rulings, such as Headquarters ruling H256547. The gesso-type coating therefore precludes classification of the products in headings 4407 or 4409.
Uncoated S3S boards would be classifiable in heading 4407, which provides for Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm. However, S3S boards coated with gesso-type coating are precluded from classification in heading 4407. Because the boards are not dedicated by their shaping for any particular use and are therefore not classifiable in any other heading of Chapter 44, they are classifiable as other articles of wood.
The moldings and siding products are wood products that are dedicated by their shaping for use in the construction of buildings. Heading 4418 provides for builders’ joinery and carpentry, which are recognizable wood articles used in the construction of a building. The shaped wood products are described by the language “builders’ joinery”. Therefore, they are classifiable in heading 4418.
The applicable subheading for the coated quarter round moldings, shoe moldings, and siding boards will be 4418.99.9195, HTSUS, which provides for Builders' joinery and carpentry of wood, including cellular wood panels and assembled flooring panels; shingles and shakes: Other: Other: Other: Other: Other. The rate of duty will be 3.2 percent ad valorem.
The applicable subheading for the coated S3S boards will be 4421.99.9880, HTSUS, which provides for Other articles of wood: Other: Other: Other: Other: Other. The rate of duty will be 3.3 percent ad valorem.
While you state that the goods are sourced from Vietnam, Cambodia, and Indonesia, we note that Youmu PR Trading Limited is a Chinese company. In the event that the goods are of Chinese origin, we provide the following: pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4418.99.9195 and 4421.99.9880, 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 4418.99.9195 and 4421.99.9880, 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.
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.
The goods may be subject to anti-dumping and/or countervailing duties (AD/CVD) for wood moldings and millwork from China (A570-117, C570-118). 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 (ITA) and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). General information regarding the ITA and AD/CVD can be found at https://www.trade.gov/us-antidumping-and-countervailing-duties. The ITA’s “Guide on How to File for an Antidumping/Countervailing Duty Scope Ruling Request” is available at https://enforcement.trade.gov/scope/Request-Scope-Ruling.pdf
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. Additionally, please note 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