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NY N018677




November 16, 2007

CLA-2-44:OT:RR:E:NC:2:230

CATEGORY: CLASSIFICATION

TARIFF NO.: 4412.32.3160

Mr. Steven A. Cohen
American Signature Inc.
1800 Moler Road
Columbus, OH 43207

RE: The tariff classification and country of origin marking of alder plywood from Nepal

Dear Mr. Cohen:

In your letter dated October 18, 2007 you requested a tariff classification and country of origin marking ruling on alder plywood.

The plywood consists of seven plies of Nepal alder, also known as “Uttis” and as Indian alder (Alnus spp.). Each ply measures approximately 2.5 mm thick and the total thickness is 17.5 mm. The plywood will be imported in 4’ x 8’ sheets with unfinished, unsanded surfaces. The plywood will be used for manufacturing sofas and chairs.

The applicable subheading for the alder plywood described above will be 4412.32.3160, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Plywood, veneered panels and similar laminated wood: Other plywood, consisting solely of sheets of wood, each ply not exceeding 6 mm in thickness: Other, with at least one outer ply of nonconiferous wood (other than a tropical wood specified in subheading note 1 of chapter 44): Not surface covered, or surface covered with a clear or transparent material which does not obscure the grain, texture or markings of the face ply: Other (than with a face ply of certain enumerated species): Other (than panels of specified dimensions): Not surface covered. The rate of duty will be 8 percent ad valorem.

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 World Wide Web at http://www.usitc.gov/tata/hts/.

Articles classifiable under subheading 4412.32.3160, HTSUS, which are products of Nepal may be entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Web site at www.cbp.gov and search for the term "GSP".

You also inquired if each plywood sheet is required to be marked with the country of origin or if the country of origin marking on each bundle is sufficient when imported to be processed by the manufacturer of sofas and chairs.

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35.

In this case, the imported alder plywood sheets are substantially transformed into sofas and chairs as a result of the U.S. processing, and therefore the U.S. manufacturer is the ultimate purchaser of the imported plywood. Under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin. Accordingly, marking the container (the bundles) in which the alder plywood sheets are imported and sold to the ultimate purchaser in lieu of marking the plywood sheets individually is an acceptable country of origin marking, provided the port director is satisfied that the article will remain in the marked container until it reaches the ultimate purchaser.

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 646-733-3035.

Sincerely,

Robert B. Swierupski
Director,

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