HQ 0087616 - United States-Canada Free Trade Agreement duty free status under Chapter 99 of the Harmonized Tariff Schedule of the United States Annotated for laminated wood and finger- jointed hemlock handrails, hemlock "turning squares", laminated and bullnosed hemlock stair treads, and laminated shoerails; builders' joinery and carpentry of wood, articles of wood, edge-glued lumber, pressure treated lumber, finger-jointed lumber - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1990 HQ Rulings > HQ 0087425 - HQ 0109366 > HQ 0087616

HQ 087616

August 20, 1990

CLA-2 CO:R:C:G 087616 JMH

CATEGORY: CLASSIFICATION

TARIFF NO.: 4418.90.40, 4421.90.90, 9905.44.10, 9905.44.15

Mr. Dave Walser
Arthur J. Humphreys, Inc.
P.O. Box 249
Sumas, Washington 98295

RE: United States-Canada Free Trade Agreement duty free status under Chapter 99 of the Harmonized Tariff Schedule of the United States Annotated for laminated wood and finger- jointed hemlock handrails, hemlock "turning squares", laminated and bullnosed hemlock stair treads, and laminated shoerails; builders' joinery and carpentry of wood, articles of wood, edge-glued lumber, pressure treated lumber, finger-jointed lumber

Dear Mr. Walser:

Your June 18, 1990 request for a classification ruling under the Harmonized Tariff Schedule of the United States Annotated ("HTSUSA") for certain wood products was referred to this office for a reply. Your classification request concerned the duty free status of the products in question under the United States-Canada Free Trade Agreement ("FTA").

FACTS:

The articles in question are wood products made of Canadian hemlock and imported from Canada. They are used to form complete staircase systems for residential and/or commercial buildings. Three of the products were the subject of New York Ruling Letter 847226 ("NY 847226"), dated December 12, 1989. The items in question are:

1. Hemlock handrails made of laminated wood sections, finger-jointed and worked to a pattern having the same profile in cross section throughout its length. These handrails, were classified by NY 847226 in subheading 4418.90.40, HTSUSA.

2. Hemlock stair treads made of laminated wood sections and bullnosed along the front edge. The stair treads were classified by NY 847226 in subheading 4418.90.40, HTSUSA.

3. Hemlock "turning squares" made of various wood sections (which may be finger-jointed) laminated together to form a 10.7 cm square block with a 3.5 cm square hole in the center. The "turning squares" were classified by NY 847226 in subheading 4421.90.90, HTSUSA.

4. Hemlock shoe rails made of clear (knot-free) lumber pieces, finger-jointed and worked to produce the same profile in cross section throughout its length. It is not stated whether these shoe rails are solid or laminated.

Laminated wood articles are made from edge-glued lumber. Edge-glued lumber is lumber made of layers of wood that have been glued together. Articles which are finger-jointed are made from finger-jointed lumber. Finger-jointed lumber consists of shorter pieces of lumber that are connected to make longer pieces of lumber. Articles may be both laminated and finger-jointed.

ISSUE:

Issue 1: What is the appropriate classification of the Canadian hemlock products under the HTSUSA?

Issue 2: Whether the Canadian hemlock products are entitled to duty free treatment under the FTA?

LAW AND ANALYSIS:

Issue 1: What is the appropriate classification of the Canadian hemlock products under the HTSUSA?

The classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUSA, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes..."

This office concurs with NY 847228 in the classification of the handrails and stair treads in subheading 4418.90.40. The handrails and the bull-nosed stair treads are builders' carpentry and joinery. This subheading describes "Builders' joinery and carpentry of wood, including cellular woods panels and assembled
parquest panels; shingles and shakes...Other...Other..." There is a 4 percent ad valorem rate of duty applicable to goods of this classification that are of Canadian origin under the FTA.

This office also concurs with NY 847228 in the classification of the "turning squares" in subheading 4421.90.90. This subheading describes "Other articles of wood...Other... Other..." NY 847228 states that these articles "do not meet the description of products under heading 4418 since they are neither dedicated nor recognizable as woodwork used in the construction of any kind of building." Classification in subheading 4421.90.90 requires a 4 percent ad valorem rate of duty for goods of Canadian origin under the FTA.

The hemlock shoe rail has two possible classifications. If the shoe rail is a solid, unfinished molding, it is classified in subheading 4409.10.45, HTSUSA, as "Wood continuously shaped (...molded..) along any of its edges or faces, whether or not planed, sanded or finger-jointed...Wood moldings...Other..." All articles of this classification from Canada may enter the United States duty free. Since this classification provides for duty free entry regardless of the FTA, the question of the applicability of the FTA to a solid hemlock shoe rail does not arise.

If the hemlock shoe rail is laminated, then the proper classification is in subheading 4418.90.40 as "Builders' joinery and carpentry of wood, including cellular wood panels and assembled parquet panels; shingles and shakes...Other...Other..." As stated previously, articles of this classification of Canadian origin under the FTA are charged a 4 percent ad valorem rate of duty.

Issue 2: Whether the Canadian hemlock products, whose tariff is based upon whether they originate in Canada, are entitled to duty free treatment under the FTA?

General Note 3(c)(vii), HTSUSA, provides the FTA country of origin rules to be applied under the HTSUSA. These rules were taken from Articles 301 and 304 and Annex 301.2 of the FTA. Chapter Three, Articles 301 and 304, Annex 301.2, FTA published in full at 19 U.S.C. 2112(E)(2), 2212(A), H.R. Doc. No. 216, 100th Cong., 2d Sess. (1988). General Note 3(c)(vii)(B)(1), HTSUSA, states that "goods originating in the territory of Canada" includes "goods wholly obtained or produced in the territory of Canada..."

"Goods wholly obtained or produced in the territory of Canada..." means "goods harvested in the territory of Canada..." General Note 3(c)(vii)(L)(2), HTSUSA. The hemlock which is grown in Canada is a good "wholly obtained or produced" in Canada.

Wood is considered an agricultural crop which is harvested. See United States v. Border Brokerage Co., 706 F.2d 1579 (1983), United States v. Norman G. Jensen, 550 F.2d 662 (CCPA 1977), Headquarters Ruling Letter 082963, dated July 25, 1990, Headquarters Ruling Letter 078239, dated March 23, 1987. Therefore, the Canadian hemlock in question is a good "originating in the territory of Canada" within the meaning of the FTA. The wood is eligible for any provisions which apply to products covered by the FTA.

Chapter 99 of the HTSUSA contains two duty free provisions relevant to the wood articles of Canadian origin in question. The two provisions, subheadings 9905.44.10 and 9905.44.15, HTSUSA, provide free rates of duty for "Goods originating in the territory of Canada under general note 3(c)(vii) of the tariff schedule." The subheadings state the following:

9905.44.10 Pressure treated lumber, finger-jointed builders' joinery, and edge-glued lumber
(provided for in subheading
4418.90.40)...

[Subheading 4418.90.40 describes
"Builder's joinery and carpentry of wood, including cellular wood panels and assembled parquet panels; shingles and shakes...
Other...Other..."]

9905.44.15 Laminated hemlock post blanks, finger- jointed lumber, and edge-glued lumber
(provided for in subheading
4421.90.90)...

[Subheading 4421.90.90 describes
"Other articles of wood...Other...
Other..."]

The laminated handrails and shoe rails and the bull-nosed stair treads are classified in subheading 4418.90.40. However, the language of subheading 9905.44.10 does not mimic the language of subheading 4418.90.40, to which it refers. Therefore, it must be determined exactly what articles classified in subheading 4418.90.40 are to receive duty free treatment under subheading 9905.44.10.

Heading 4418 covers "Builders' joinery and carpentry of wood, including cellular wood panels and assembled parquet panels; shingles and shakes..." Subheading 4418.90.40, is the "other" subheading for heading 4418. It covers articles that fall within heading 4418, but which do not fall in any of the
specific subheadings. Specific subheadings exist for parquet panels, and shingles and shakes. Therefore, since these articles are not covered by subheading 4418.90.40, they are not included within subheading 9905.44.10. This exclusion of parquet panels, shingles and shakes leaves "Builders' joinery and carpentry of wood, including cellular wood panels..." to be possibly covered by subheading 9905.44.10.

Subheading 9905.44.10 covers in part "Pressure treated lumber..." Pressure treated lumber is lumber that has been treated with a chemical under pressure. Lumber, within the HTSUSA, is unfinished wood of all types that has been sawn, chipped, sliced or peeled lengthwise and that does not exceed 6 mm in thickness. Lumber which meets this definition is classified in heading 4407, HTSUSA, not under heading 4418. Heading 4407 provides a free rate of duty. Since pressure treated lumber is already duty free, it is unlikely that subheading 9905.44.10 refers to pressure treated lumber of these types.

Also covered by subheading 9905.44.10 is "edge-glued lumber". Edge-glued lumber does not meet the definition of lumber in order to be classified in heading 4407. This layered lumber is classified under various headings of the HTSUSA according to the product made from the lumber.

Since heading 4418 covers specific articles, builders' joinery and carpentry, the subheading 9905.44.10 reference to pressure treated lumber and edge-glued lumber alludes to articles made of these types of lumber. It is the opinion of this office that subheading 9905.44.10 refers to builders' joinery and carpentry made of pressure treated lumber, and builders' joinery and carpentry made of edge-glued lumber, whether or not they are finger-jointed. Cellular wood panels are not considered to be builders' joinery and carpentry. Thus, cellular wood panels are not included in subheading 9905.44.10.

The articles in question classified in subheading 4418.90.40, the laminated handrail and shoe rail and the stair treads, are covered by subheading 9905.44.10. Laminated wood articles are articles made of edge-glued lumber. Thus, under the above interpretation of subheading 9905.44.10, the laminated handrails, shoe rails and stair treads are eligible for duty free entry into the Customs territory of the United States.

The "turning squares" are classified in subheading 4421.90.90, the "basket" provision of heading 4421, HTSUSA, which describes "Other articles of wood..." The language of subheading 9905.44.15 is clear that laminated hemlock post blanks are included in this duty free provision. However, the remainder of the provision refers to types of lumber, finger-jointed lumber
and edge-glued lumber. Since lumber is classified in heading 4407 or in the heading appropriate to the product made from the lumber, in the case of edge-glued lumber, the language of subheading 9905.44.15 cannot be referring to lumber. It is the opinion of this office that subheading 9905.44.15 is meant to cover laminated hemlock post blanks, articles made of finger- jointed lumber and articles made of edge-glued lumber, whether or not finger-jointed, that are classified in subheading 4421.90.90.

The "turning squares" are laminated, and therefore, edge- glued. Since the "turning squares" are articles of edge-glued lumber that are classified in subheading 4421.90.90. They are eligible for duty free entry under subheading 9905.44.15.

Subheadings 9905.44.10 and 9905.44.15 were announced on May 25, 1990 in Presidential Proclamation 6142. This proclamation was not pubished until May 30, 1990. 55 Fed. Reg. 21835 (May 30, 1990). The Chapter 99 subheadings were included in Section C of the proclamation. Section C states "Effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after April 1, 1990, subchapter V of chapter 99 to the HTS is modified..." 55 Fed. Reg. at 21838. Therefore, the effective date of subheadings 9905.44.10 and 9905.44.15 is April 1, 1990.

HOLDING:

It is the opinion of this office that subheading 9905.44.10 is meant to be read as "builders joinery and carpentry made of pressure treated lumber, and builders joinery and carpentry made of edge-glued lumber classified in subheading 4418.90.40, whether or not finger-jointed."

The Canadian hemlock items classified in subheading 4418.90.40, the laminated handrails, shoe rails, and stair treads are builders' carpentry or joinery made of edge-glued lumber, are eligible for duty free entry under subheading 9905.44.10.

It is the opinion of this office that subheading 9905.44.15 is meant to be read as "laminated hemlock post blanks and other articles made of edge-glued lumber, whether or not finger- jointed, classified in subheading 4421.90.90."

The Canadian laminated hemlock shoe rails are articles made of edge-glued lumber that are also finger jointed. Since the shoe rails are classified in subheading 4421.90.90 and are articles made of edge-glued lumber, they are eligible for duty free treatment under subheading 9905.44.15.

The effective date of subheadings 9905.44.10 and 9905.44.15 for articles entered or withdrawn from a warehouse for consumption is April 1, 1990, in accordance with Presidential Proclamation 6142 of May 25, 1990.

Sincerely,

John Durant, Director
Commercial Rulings Division

Previous Ruling Next Ruling

See also: