CLA-2-44:OT:RR:NC:N5:130
Ms. Andrea Abraham
Meeks, Sheppard, Leo & Pillsbury LLP
570 Lexington Ave., 24th floor
New York, NY 10022
RE: The tariff classification of surface covered laminated veneer lumber panels from China
Dear Ms. Abraham:
In your letter, dated September 26, 2024, you requested a binding tariff classification ruling on behalf of your client, Taraca Pacific, Inc. The request was for surface covered laminated veneer lumber panels. Product information and photos were submitted for our review.
The product under consideration is laminated veneer lumber (LVL) that has been surface covered with medium density fiberboard (MDF). The imported panels will measure 4’ wide by 9’ long by 18mm thick. The LVL consists of several jabon (a tropical wood) veneers laminated one on top of the next with grains oriented parallel to one another. The LVL measures 13mm in thickness. There is a 2.5mm-thick layer of MDF laminated onto the face and back of the LVL panel.
In your letter, you argue that the panels are classifiable in subheading 4421.99.9880, Harmonized Tariff Schedule of the United States (HTSUS), in accordance with New York Ruling N315431, dated November 12, 2020. We disagree. Ruling N315431 classifies edge-glued lumber that is surface covered with MDF. The product in the ruling is a different construction than the instant product. The instant product is surface covered LVL. Surface covered LVL is specifically provided for in another heading.
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 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 “laminated veneer lumber” as set forth in the ENs to heading 4412. “Laminated veneer lumber” is defined as panels “composed of layers of wood veneer, the grain of the outer veneers and most or all other veneers running parallel to the longitudinal axis (e.g. successive veneers).” LVL is specifically provided for in heading 4412, HTSUS, and this product is classified therein in accordance with GRI 1. The MDF 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 LVL of heading 4412, HTSUS, may be surface covered with a variety of materials, including “other material”, which includes MDF. The MDF merely enhances the properties of the LVL.
The applicable subheading for the surface covered LVL panels will be 4412.41.0000, HTSUS, which provides for Laminated veneer lumber; With at least one outer ply of tropical wood. The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 4412.41.0000, 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 4412.41.0000, 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 on the World Wide Web 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. 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 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, contact National Import Specialist Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division