CLA-2-44:OT:RR:NC:N5:130
Mr. Noel Courtney
Genesis Products Inc.
1853 Eisenhower Dr. S
Goshen, IN 46526
RE: The tariff classification of surface covered plywood panels from China
Dear Mr. Courtney:
In your letter, dated March 6, 2024, you requested a binding tariff classification ruling. Your request was returned to you for additional information, which was submitted to our office on April 17, 2024. The ruling was requested on surface covered plywood panels. Product information and a sample were submitted for our review.
The products under consideration are multilayer wood panels. You state that the panels measure 4 feet wide by 8 feet long and between 12mm to 19mm in thickness. The panels are constructed of 5 to 11 layers or plies of eucalyptus (a non-coniferous wood), none of which exceeds 6mm in thickness. The grain of each layer runs at a 90-degree angle to the successive layers. The panels are overlaid on both outer surfaces with a layer of particle board that measures approximately 2mm in thickness. The particle board obscures the grain of the eucalyptus wood beneath it.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level (for the 4-digit headings and the 6-digit subheadings) and facilitate classification under the Harmonized Tariff Schedule of the United States (HTSUS) by offering guidance in understanding the scope of the headings and the General Rules of Interpretation (GRI). While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989).
The instant multilayer wood panels meet the definition of plywood as set forth in the ENs to heading 4412. Plywood is defined as a panel 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. Plywood is specifically provided for in heading 4412, HTSUS, and this product is classified in that heading in accordance with GRI 1.
The particle board layers are surface coverings as described in Additional US Note 1(c) to Chapter 44, HTSUS:
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.
This note specifically provides that plywood of heading 4412, HTSUS, may be surface covered with a variety of materials, including other material, which includes particle board. The particle board merely enhances the properties of the plywood. As the particle board obscures the grain of the eucalyptus, the panels will be classified as plywood that is surface covered with a material that obscures the grain of the face ply.
The applicable subheading for the surface covered plywood panels will be 4412.33.5700, 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 of the species alder (Alnus spp.), ash (Fraxinus spp.), beech (Fagus spp.), birch (Betula spp.), cherry (Prunus spp.), chestnut (Castanea spp.), elm (Ulmus spp.), eucalyptus (Eucalyptus spp.), hickory (Carya spp.), horse chestnut (Aesculus spp.), lime (Tilia spp.), maple (Acer spp.), oak (Quercus spp.), plane tree (Platanus spp.), poplar and aspen (Populus spp.), robinia (Robinia spp.), tulipwood (Liriodendron spp.) or walnut (Juglans spp.): 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). 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 subheadings 4412.33.5700, 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 subheadings 4412.33.5700, 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 (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
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 at https://hts.usitc.gov/.
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, we 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 and Border Protection 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, please contact National Import Specialist Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division