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NY H81444




June 25, 2001

CLA-2-44:RR:NC:2:230 H81444

CATEGORY: CLASSIFICATION

TARIFF NO.: 4412.19.3000; 4412.19.4062

Mr. Jim Reynolds
John A. Steer Co.
28 S. Second Street
Philadelphia, PA 19106

RE: The tariff classification, country of origin and marking of plywood manufactured in Russia and sorted, graded and sanded in Denmark; eligibility of GSP

Dear Mr. Reynolds:

In your letter dated May 25, 2001, on behalf of your client, D.L.H. Nordisk Inc., you requested a tariff classification and marking ruling.

The ruling was requested on the classification and the country of origin determination for entry and marking purposes of plywood manufactured in Russia and processed further in Denmark. In addition, you inquired if duty free treatment under the Generalized System of Preferences (GSP) would be applicable for the shipment.

The plywood is manufactured by several mills in Russia. The Russian plywood panels are shipped to Denmark where they are sorted by thickness and grade. The panels are then sanded and grade stamped in Denmark. The sanded plywood panels are imported into the United States from Denmark.

The plywood to be imported consists of 3 to 11 plies of veneer of either pine (Pinus sylvestris) or larch (Larix decidua). The plywood panels will be imported in dimensions of 1.22 meters wide by 2.244 meters long by a thickness ranging from 6.4 mm to 21.43 mm. The plywood may consist of 100 percent of the same species of wood or a mixture of the two species in any combination of layers. The veneers are hot pressed together with the face, back and internal long grain veneers of no individual thickness greater than 2.2 mm. The cross grain veneers run at a 90 degree angle to the face and back veneers and are of no thickness greater than 3.4 mm. The surfaces of the imported plywood panels will not be covered or coated but will be sanded on both the face and back.

For tariff classification purposes, the country of origin for the imported plywood panels described above is Russia. The operations performed in Denmark (sorting, grading, sanding and stamping) do not result in a substantial transformation of the plywood. Sorting, grading and stamping are operations which facilitate the sale of the plywood but do not change the plywood itself. The sanding operation is a finishing process for the plywood but does not create a new and different article of commerce. Therefore, the country of origin remains the country where the plywood was manufactured.

Under the Generalized System of Preferences (GSP), merchandise which is the growth, product or manufacture of a beneficiary developing country and imported directly from such beneficiary developing country may qualify for duty-free treatment.

Part 10.175, Customs Regulations, describes circumstances where merchandise from a beneficiary developing country may be shipped through another country and still be eligible for GSP benefits. However, none of the circumstances would apply in this case because of the sanding operation. The sanding operation is a finishing process; it is more than any of the operations allowed under the circumstances described in the regulations.

The subject plywood panels, although manufactured by a beneficiary developing country (Russia), are not shipped directly form the beneficiary developing country. Consequently, duty-free treatment under the GSP is not applicable for such shipments.

The applicable subheading for the plywood panels made of 100 percent pine or with both outer plies of pine or with a face ply of pine will be 4412.19.3000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for plywood consisting solely of sheets of wood, each ply not exceeding 6 mm in thickness; other, with both outer plies of coniferous wood; not surface covered; with a face ply of European red pine (Pinus silvestris). The rate of duty will be 3.4 percent ad valorem.

The applicable subheading for the plywood panels made of 100 percent larch or with both outer plies of larch or with a face ply of larch will be 4412.19.4062, HTSUSA, which provides for plywood consisting solely of sheets of wood, each ply not exceeding 6 mm in thickness; other, with both outer plies of coniferous wood; not surface covered; other; other; fully sanded on at least one face, but not further processed. The rate of duty will be 8 percent ad valorem.

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304) requires that unless excepted, every article of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR 134) implements the country of origin marking requirements of 19 U.S.C. 1304.

Part 134.1(b), Customs Regulations, defines country of origin as follows:
the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of this part;

Since the work performed in Denmark (sorting, grading, sanding and stamping) on the plywood manufactured in Russia does not effect a substantial transformation, the country of origin of the imported plywood, for marking purposes, is Russia.

In order to satisfy the marking requirements, each plywood panel must be conspicuously, legibly, indelibly and permanently marked with the country of origin, i.e., “Made in Russia.”

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 19 CFR 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, either directly, by reference, or by implication, is accurate and complete in every material respect.

This ruling is being issued under the assumption that the subject goods, in their condition as imported into the United States, conform to the facts and the description as set forth both in the ruling request and in this ruling. In the event that the facts or merchandise are modified in any way, you should bring this to the attention of Customs and you should resubmit 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 the Customs Service.

This ruling is being issued under the provisions of Part 177 of the Customs 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 Paul Garretto at 212-637-7009.

Sincerely,

Robert B. Swierupski
Director,

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