plywood, veneered panels, and similar laminated wood · similar laminated wood is defined as: 1)...
TRANSCRIPT
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.
2Not for duplication
Contact information
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Laurel Duvall, NIS 130
(646) 733-3035
1 World Trade Center, Suite 51.201
New York, NY 10007
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.
4Not for duplication
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.
6Not for duplication
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
7Not for duplication
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:
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https://www.cbp.gov/sites/default/files/documents/
cbp_rulings_prog_3.pdf
Not for duplication
Binding Rulings
10Not for duplication
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?
11Not for duplication
• 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.
12Not for duplication
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.
13Not for duplication
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
14Not for duplication
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
15Not for duplication
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.
16Not for duplication
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
18Not for duplication
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
19Not for duplication
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.
20Not for duplication
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.
22Not for duplication
What do “plywood”, “veneered panels” and
“similar laminated wood” mean in the
HTSUS?
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
24Not for duplication
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
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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?
28Not for duplication
Because fiberboard does not have a grain
Similar Laminated Wood
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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.
Heading 4412Classification in 4412 is determined by the
FACE PLY
Meranti plywoodCherry Veneered Particleboard
Oak blockboard
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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
32Not for duplication
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
Classifying in 4412
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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?
36
To determine classification of panels in heading
4412, you MUST answer the following questions:
Not for duplication
Classifying in 4412
37
To determine classification of panels in heading
4412, you MUST answer the following questions:
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
To determine classification of panels in heading
4412, you MUST answer the following questions:
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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
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.
42Not for duplication
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.
43Not for duplication
Included in scope
44Not for duplication
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.
45Not for duplication
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.
46Not for duplication
Radiata pine plywood
Excluded from Scope
47Not for duplication
• 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”
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?
49Not for duplication
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.
Manufacturing Scenarios
Veneers are cut in China and shipped to Vietnam,
where they are laminated into plywood panels.
What is the country of origin? Why?
Would this product be subject to AD/CVD?
50Not for duplication
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.
Manufacturing Scenarios
Hardwood plywood faced with Radiata pine is
shipped from China to Vietnam, where it is overlaid
with birch veneer.
What is the country of origin? Why?
Would this product be subject to AD/CVD?
51Not for duplication
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!
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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.
53Not for duplication