The tariff classification and country of origin of edge-glued and finger-jointed cedar siding from China

NY L85371 June 23, 2005 CLA-2-44:RR:NC:2:230 L85371 CATEGORY: Classification TARIFF NO.: 4418.90.4590 Mr. Craig Moorhead Nelson International Inc. 1100-1166 Alberni St. Vancouver, BC V6E 3Z3 Canada RE: The tariff classification and country of origin of edge-glued and finger-jointed cedar siding from China Dear Mr. Moorhead: In your letter dated May 30, 2005 you requested a tariff classification and a country of origin determination ruling. The product to be classified is cedar siding manufactured in China from Canadian western red cedar. A description of the processing and representative samples of the cedar from Canada and the siding from China were submitted. Western red cedar is exported from Canada to China in the form of boards in nominal sizes of 2” x 6” x 72” and 2” x 8” x 72”. The boards are kiln dried, surfaced four sides and eased four edges. They are of a low grade and contain numerous knots and other defects, such as wane, shake, honeycomb, split, decay, crook, bow and twist. In China, the knots and defects of the boards are removed using a chop saw. Perpendicular or vertical cuts are made to remove knots and similar defects across the width. Horizontal cuts are made to remove defects that run down the length such as split and wane. You state that 70 – 85 percent of the boards will require horizontal cuts. After the defects are removed, the remaining defect free wood pieces are edge-glued and finger-jointed together to make boards measuring in actual sizes 1-1/2” x 5-1/2” x 16’ or 1-1/2” x 7-1/4” x 16’. The finger-jointed, edge-glued boards are resawn at an angle across the width using thin kerf single band saws. Three to four pieces of bevel siding are produced from each board. The resawn bevel siding is planed on the angled face and on the butt end and it is eased on three corners. The siding is graded and packed for shipment in bundles of ten pieces. The product to be imported into the United States from China is identified as clear FJ (finger-jointed) EG (edge-glued) bevel siding. The siding consists of boards with an angled smooth face in two nominal sizes, ½” x 6” x 16’ and ½” x 8” x 16’. The applicable subheading for the edge-glued and finger-jointed bevel siding will be 4418.90.4590, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for builders’ joinery and other carpentry of wood, other. The rate of duty will be 3.2 percent ad valorem. You also requested a country of origin determination for the subject edge-glued and finger-jointed bevel siding from China. 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. The "country of origin" is defined in 19 CFR 134.1(b) as "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; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin." For tariff purposes, the courts have held that a substantial transformation occurs if a new and different article emerges having a distinctive name, character or use. AnheuserBusch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). We find that the western red cedar boards from Canada have been substantially transformed by the processing done in China. The multi-purpose and low grade cedar boards have been manufactured into a new and different article having a specific purpose, namely, clear edge-glued (EG) and finger-jointed (FJ) bevel siding. Accordingly, the country of origin for the subject edge-glued and finger-jointed cedar siding is China. The above country of origin determination applies for both duty purposes and for marking purposes. The edge-glued and finger-jointed cedar siding is required to be marked with the country of origin, “Made in China.” Importation of these products may be subject to import regulations administered by the U.S. Department of Agriculture (U.S.D.A.). Information regarding applicable regulations administered by the U.S.D.A. may be addressed to that agency at the following location: U.S. Department of Agriculture A.P.H.I.S., PPQ 4700 River Road, Unit 136 Riverdale, MD 20737 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 U.S. Customs and Border Protection (CBP) 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 CBP. 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, National Commodity Specialist Division