The country of origin of acetylated lumber

N262023 March 11, 2015 CLA-2-44:OT:RR:NC:2:230 CATEGORY: COUNTRY OF ORIGIN Mr. Ken Skillman Universal Forest Products 5200 Highway 138 Union City, GA 30291 RE: The country of origin of acetylated lumber Dear Mr. Skillman: This is in response to your letter, dated February 24, 2015, requesting a ruling on the country of origin of acetylated lumber. You outline a scenario wherein Radiata Pine lumber is cut in New Zealand, and is subsequently shipped to the Netherlands, where it is treated with acetic anhydride. You note in your submission that the acetylation process renders the wood much less absorbent, more dimensionally stable, and more durable. You do not indicate any particular details about the wood, other than to state that it is “lumber” and has a thickness greater than 6mm. That said, aside from the acetylation, you indicate that no other processing of the wood will take place in the Netherlands. Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry of origin" means 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 Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908). The Explanatory Notes to Chapter 44 state that, “(g)enerally speaking, throughout the Nomenclature, the classification of wood is not affected by treatment necessary for its preservation, such as seasoning, superficial charring, priming and stopping, or impregnation with creosote or other wood preservatives (e.g., coal tar, pentachlorophenol (ISO), chromated copper arsenate or ammoniacal copper arsenate); nor is it affected by reason of being painted, stained or varnished.” Acetylation qualifies as such a preservative process. If the product manufactured in New Zealand is wood sawn or chipped lengthwise from logs, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm, and merely undergoes treatment with acetic anhydride in The Netherlands, there is no substantial transformation of the product. Because no substantial transformation is effected by the acetylation, the country of origin of the product is New Zealand. 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 Laurel Duvall at (646) 733-3035. Sincerely, Gwenn Klein Kirschner Director National Commodity Specialist Division