plywood, veneered panels, and similar laminated wood · similar laminated wood is defined as: 1)...

Plywood, Veneered Panels, and

Similar Laminated Wood New Orleans, LA

March 16, 2018

Laurel Duvall, National Import Specialist

1Not for duplication

DisclaimerThe material in this presentation is for general information purposes and is

intended to provide guidance and information to the trade community to

promote the understanding of, and compliance with, importing laws and

regulations. Legislative and administrative changes are always under

consideration and can occur at any time. Therefore, the information contained

herein should not be interpreted to indicate a certain result will occur in a

particular situation. 19 C.F.R. 177.9(b) provides that “The application of a

ruling letter by a CBP field office to the transaction to which it is purported to

relate is subject to the verification of the facts incorporated in the ruling letter, a

comparison of the transactions described therein to the actual transaction, and

the satisfaction of any conditions on which the ruling was based.” Recognizing

that many complicated factors may be involved in customs issues, an importer

may wish to obtain a ruling under CBP Regulations, 19 C.F.R. Part 177, or

obtain guidance from private-sector experts who specialize in customs matters,

such as a licensed Customs Broker, attorney or consultant. Reliance solely on

the general information in this webinar may not be considered reasonable

care.


Contact information

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Laurel Duvall, NIS 130

(646) 733-3035

1 World Trade Center, Suite 51.201

New York, NY 10007

[email protected]

Not for duplication

What does an NIS do?

A National Import Specialist specializes in imports

of specific commodities, and amongst other duties:

▪ Writes binding rulings on product classification, special trade

programs, and country of origin/marking.

▪ Reviews AD/CVD scopes for administrability and conformance

with the Harmonized Tariff Schedule of the U.S. (HTSUS)

▪ Contributes on international and national levels to the creation

and implementation of HTSUS provisions

▪ Are subject matter experts in court proceedings and other

agency matters.


Binding Rulings


I swear they aren’t a bad thing!

Binding Ruling Requests

What are binding rulings?

Rulings are written decisions issued by

CBP that are legally binding on both

the agency and the importer.


Binding Ruling Benefits

Binding rulings allow for predictable trade.

▪ Knowing the duty rate allows for financial planning.

▪ Guarantees Customs’ treatment of the product.

▪ Very transparent - You can access all rulings and research

them.

▪ If you disagree, you can challenge the ruling and rulings will

not be changed or revoked without notice.

▪ They’re free!

▪ They’re easy to request


Binding Rulings

• Classification

• Valuation

• Special Trade Programs

• Marking/Country of Origin

• Carriers, Foreign Trade Zones, Bonded

Warehouses

• Entry Processes

• Intellectual Property Rights

• Etc.

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Rulings can address many topics, including:

Not for duplication

Binding Rulings

Check out Customs’ Informed Compliance

Publication to learn more:

9

https://www.cbp.gov/sites/default/files/documents/

cbp_rulings_prog_3.pdf

Not for duplication

https://www.cbp.gov/sites/default/files/documents/cbp_rulings_prog_3.pdf

Binding Rulings


How can you search and read rulings?

rulings.cbp.gov

CROSS is a database that currently contains nearly 198,000

rulings. Sometimes you need to get creative in your

searches to find ruling guidance, but with so many rulings,

there’s a good chance there’s already a ruling on the product

you’re querying, or even a similar product.

Binding Rulings

Who issues rulings?


• National Commodity Specialist Division in NYC

(NISs)

• Regulations and Rulings, CBP Headquarters,

Washington DC

Do you know the difference between a

New York ruling and a Headquarters

ruling?

Binding Rulings

New York Rulings:

These are written rulings issued on

prospective importations. Governed by 19

CFR 177.1

The NCSD cannot issue rulings once the goods are imported or the

Port or CEE has taken action on the entry. If the importer disagrees

with the Port’s or CEE’s action, the NCSD is precluded from issuing a

ruling. You may pursue the matter by the Internal Advice procedure, or

you may file a protest with an Application for Further Review.


Binding Rulings

New York Rulings:

• New York is the first line of classification ruling issuance.

• Importers and other interested parties can request rulings

directly from the NCSD

• The NCSD is made up of commodity experts

• The NCSD issues rulings covering:

▪ Classification

▪ Country of Origin

▪ Marking

▪ Special Trade Programs/Free Trade Agreements, e.g.

NAFTA, CAFTA, etc.


Binding Rulings

HQ Rulings

• Are written by attorneys

• Include more detailed legal analysis

than NY rulings

• Importers and other parties do not

generally request prospective

classification rulings from HQ


Binding Rulings

HQ rulings cover:

• Internal Advice Requests – 19 CFR 177.11

• Protests with Application for Further Review - 19 CFR

174.23

• Reconsiderations of NY Rulings – 19 CFR 177.12

• Processes and subjects not covered by NY rulings,

such as carriers, IPR, restricted merchandise, bonded

warehouses, etc.

• Sometimes precedential rulings forwarded by the

NCSD


Binding Rulings

CBP does NOT issue binding rulings on

matters of AD/CVD

• Note that neither HQ nor the NCSD issues rulings

regarding anti-dumping or countervailing duty

cases.

• Jurisdiction for AD/CVD lies with the Dept. of

Commerce.


Binding Rulings

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If you have an NY ruling and an HQ

ruling on a particular product that

conflict, which ruling takes

precedence?

The HQ Ruling

Not for duplication

Submitting Binding Ruling Requests

Requests must include:

• Full and complete description of the item

• Complete statement of all relevant facts

• Quantity and value breakdowns of materials

• Identify the port(s) at which the goods will be

entered

• Currently or previously considered by CBP or

Courts?

• Limited to five items of the same class or kind


Electronic Binding Ruling RequestsBecause many complicated factors can be involved in Customs

issues, an importer may wish to obtain a binding ruling, or may wish

to obtain advice from an expert who specializes in Customs matters,

for example, a licensed Customs Broker, attorney or consultant.

Rulings can be requested in writing to:

Director, NCSD

Regulations and Rulings

Customs and Border Protection

201 Varick St., Suite 501

New York, NY 10014

Rulings can be requested electronically at:

https://erulings.cbp.gov/home


Advice

Please feel free to use me as a resource –

▪What we consider in classifying a product

▪If you don’t understand a ruling or the difference between

rulings

▪If you want to understand what tariff language means

But PLEASE don’t ask me to classify your goods

informally. NISs issue binding classifications.

Centers issue advice.


Dedicated to wood!


Heading 4412, HTSUS

This heading covers panels of a laminated,

multilayer construction. “Laminated”, in tariff

terms, means bonded together, usually with

glue and under pressure.


What do “plywood”, “veneered panels” and

“similar laminated wood” mean in the

HTSUS?

Heading 4412

Flooring of a plywood construction

AKA Engineered flooring


Plywood

Plywood is defined in the Explanatory Notes to the

Harmonized System (ENs) as 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


PlywoodIn tariff terms, plywood is a construction, not a thing.

Therefore, many things can be classified as plywood.

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4x8 plywood sheet

Engineered wood flooring

BlockboardBamboo plywood

Not for duplication

Veneered Panels

27

Veneered Panels are defined as panels consisting of

a thin veneer of wood affixed to a base, usually of inferior

wood (can be other materials if veneer gives panel essential

character), by gluing under pressure

Not for duplication

Veneered PanelsWhy is veneered MDF not plywood?


Because fiberboard does not have a grain

Similar Laminated Wood

29

SIMILAR LAMINATED WOOD is defined as:

1) Blockboard, laminboard and battenboard - the

core is thick and composed of blocks, laths or battens of

wood glued together and surfaced with outer plies

2) Panels in which the wooden core is replaced by

other materials such as a layer or layers of particle board,

fibreboard, wood waste glued together, asbestos or cork

Not for duplication

Similar laminated wood can also be

plywood. The subheadings allow for both.

Similar Laminated Wood


Heading 4412Classification in 4412 is determined by the

FACE PLY

Meranti plywoodCherry Veneered Particleboard

Oak blockboard

31

Not for duplication

Heading 4412

PLYWOOD – What is “surface covered”?

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

With grain visibleWith grain obscured


Fiberboard and Plywood

31

Combi-core plywood

MDF overlaid plywood

MDF is not a face ply, it is a

surface covering that

obscures the grain

MDF crossbands

do not impact

classification. They

do not negate the

properties of

plywood.MDF-faced lumber

Not plywood

because MDF

has no grain.

Classified

outside of 4412 Not for duplication

You need a break

34

So, here’s a breakdancing log.

Not for duplication

Classifying in 4412

35

To determine classification of panels in heading

4412, you MUST answer the following questions:

• Does the panel consist of layers?

• How many layers?

• What are the layers (veneer, lumber, MDF, etc.)?

• What is the thickness of each layer in mm?

• What are the species of wood of the front and back

layers (are the species coniferous, non-coniferous, or

tropical (ENs to 4421))?

Not for duplication

Classifying in 4412

• Does the construction of the panel meet the definition of

plywood, a veneered panel, or similar laminated wood?

• Does the panel have a surface coating or covering?

• Is that coating clear, transparent, or opaque?

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Not for duplication

Classifying in 4412

37



Not for duplication

• Which outer ply is the face, and which is the back?

• Does one side have a higher grade?

• Are the grades of both outer plies equal?

• Is there a functional surface coating on one

side?

• What is the function of the panel? Is it flooring, or

is it a material that can be used in multiple ways?

Classifying in 4412



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• Is the material worked?

• Is it continuously shaped (like tongue & groove)?

• Is it cut to a shape other than rectangular?

• Is it curved (as in wavy)?

• Is it drilled, perforated, or notched?

• Does it have edge-banding?

• Is it dedicated for a specific use?

Not for duplication

Classification in 4412Must compare classifications at equal heading and subheading

levels. Product must meet description before proceeding to the

next subheading.

The HTSUS works like an outline:

39

Animals

Cats

With spots……………………3.2%

Dogs

With spots……………............Free

Where do you classify cats with spots?

Not for duplication

0101.

0101.10.

0101.20.

0101.10.0010

0101.20.0010

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Classification in 4412

Not for duplicationUnfinished Maple Plywood

Plywood


AD/CVD A 570-051/C570-052

“Hardwood Plywood”

▪ Hardwood and decorative plywood, and certain veneered

panels

• Panels with two or more outer layers or plies of wood

veneers and a core.

▪ AT LEAST 3 LAYERS

• At least one of the outer layers is made up of non-coniferous

wood or bamboo.

• The panels are included in the scope regardless of surface

covering, and regardless of whether that surface covering

obscures the grain of the wood.


AD/CVD “Hardwood Plywood”

• The panels are included regardless of dimension

(thickness, length, width, thickness of layers).

• Core can be any material – veneer plies, fiberboard,

particleboard, coniferous wood, non-coniferous wood.

• Panels included regardless of panel finishing – sanded,

“distressed”, hand-scraped, etc.

• Panels included even if trimmed, cut to size, notched,

punched, drilled, or if underwent minor processing.

• Includes panels that underwent minor processing in a

third country.


Included in scope


Veneer-core plywood

Blockboard, lumber-core plywood

Veneered Particle Board

Veneered Fiberboard

Laminated Veneer Lumber

Panels with two outer

wood layers and a

core of any material

Included in scope

Hardwood plywood and veneered panels are included in

the scope regardless of coatings or surface coverings

(where a material coats or covers the face or back ply).

Includes opaque coverings.


Phenolic film-faced

Paper – MDO, HDO

Plastic

MDF

Excluded from ScopeStructural plywood that is manufactured to meet U.S.

Products Standard PS 1-09, PS 2-09, or PS 2-10 for

Structural Plywood and which has both a face and a back

veneer of coniferous wood.


Radiata pine plywood

Excluded from Scope


• Multilayer wood flooring from China

• Furniture and cabinets, assembled and

unassembled

• Non-flat panels

• Fully bamboo panels

• Phenolic coating on faces and edges,

90g/m3 or more

• Products with a face and back of cork

• Finished table tops, ready to as-

semble

• Certain LVL door/window parts

Non-flat panels

Certain LVL door parts

“top layer machined with a curved edge and one

or more profile channels throughout”

You need another break


Manufacturing Scenarios

Plywood platform from China, sent to Vietnam,

where a face ply is laminated on.

What is the country of origin? Why?

Would this product be subject to AD/CVD?


The c/o is China. 19 USC 1304 states that the country of origin

is the country where the substantial transformation took place.

That was the manufacturing of veneers (4408) into plywood

(4412). 4412 plywood leaves China, and is still 4412 after

Vietnam manufacturing.

YES.


Veneers are cut in China and shipped to Vietnam,

where they are laminated into plywood panels.




NO. The product is of Vietnamese origin and is not

subject to the AD/CVD cases.

The c/o is Vietnam. The substantial transformation of

veneers (4408) into plywood (4412) takes place in

Vietnam. This renders Vietnam the c/o.


Hardwood plywood faced with Radiata pine is

shipped from China to Vietnam, where it is overlaid

with birch veneer.




The c/o is China. 19 USC 1304. Country where substantial

transformation takes place is the country of origin. This is

where veneers (4408) are transformed into plywood (4412).

Yes. The product entering the U.S. is birch-faced plywood with c/o

China. This is plainly included in the scope.

Bonus!

52

What’s another name for a woodchuck?

Not for duplication

GROUNDHOG or MARMOT or PIG-WHISTLE!

Our Mission

We are the guardians of our Nation’s borders.

We are America’s frontline.

We safeguard the American homeland at and beyond our borders.

We protect the American public against terrorists and the instruments of terror.

We steadfastly enforce the laws of the United States while fostering our nation’s

economic security through lawful international trade and travel.

We serve the American public with vigilance, integrity and professionalism.

Our Mission

We are the guardians of our Nation’s borders.

We are America’s frontline.

We safeguard the American homeland at and beyond our borders.

We protect the American public against terrorists and the instruments of terror.

We steadfastly enforce the laws of the United States while fostering our nation’s

economic security through lawful international trade and travel.

We serve the American public with vigilance, integrity and professionalism.


plywood, veneered panels, and similar laminated wood · similar laminated wood is defined as: 1)...

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