Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import...
Transcript of Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import...
Classification Mistakes to AvoidLaurel Duvall, National Import Specialist 130, Customs & Border Protection
IWPA Annual Conference
April 2, 2020
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DisclaimerThe material in this presentation is provided for guidance and general information purposes only. Reliance on this information alone may not be considered reasonable care. Because many complicated factors can be involved in Customs issues, an importer may wish to obtain a ruling under the Regulations of U.S. Customs and Border Protection, 19 C.F.R. Part 177, or may wish to obtain advice from an expert who specializes in Customs matters, for example, a licensed Customs Broker, attorney or consultant.
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Classification Errors
Errors can be common, but can also be avoided
Understanding which tariff numbers are problems and why can help improve compliance
© Matt Groening
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Binding Classification Rulings
Getting a binding classification ruling for your product is ALWAYS the best way to avoid misclassification.
The ruling is binding on both the importer and the agency.
https://erulings.cbp.gov/s/
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Biggest Classification Mistake
DO NOT CLASSIFY BY DUTY RATE
While this may be tempting, it can result in a huge bill, with interest, and penalty action (not to mention attorney fees). IT IS ILLEGAL.
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Heading 4409 Wood continuously shaped
• Wood of this heading must consist of a single, solid piece of wood (may be end-jointed to make longer). Any wood that consists of multiple pieces of wood laminated together (edge-to-edge, superimposed) is not classifiable in this heading.
• Wood can only be unfinished, painted, stained, or varnished.
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Goods in Heading 4409
Continously shaped SOLID woodNY 855719, etc.
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Goods NOT in Heading 4409Assemblies of wood are precluded. Classify based on identity.
Door jambs and crown moldings, for example, are recognizable articles used in the construction of a building, 4418.
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SEAMSIndicate wood that is not solid.
NY M82325, etc.
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Goods NOT in Heading 4409
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Molded wood, like picture frame moldings – with seams and/or coatings (other than paint, stain, and varnish) – are precluded from classification in 4409.
NY J82269, etc.NY N052963, etc.
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Tongue and groove (continuous shaping) on ends, 3.2% dutyNY N257831, etc.
Straight-cut ends (unfinished, painted, stained, or varnished only) NY
N004940,etc
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4409 Wood Flooring
Coated with UV coating, acrylic, PU, etc., 4418NY K86092, etc.
Far more likely product being imported
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Subheading 4409.21 is IMPOSSIBLE
Goods must be solid wood to be classifiable in 4409. Bamboo components cannot be made from solid wood.
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Horizontal flooring (face ≥ 4mm thick 4418.73.6000
Vertical flooring 4418.73.9000
“Engineered” flooring, face <4mm thick, 4412.10.0500, face ≥4mm thick, 4418.73.7000
Bamboo strand flooring 4418.91.9005
Bamboo moldings 4418.91.9095
NY N011396, N287566, N094275
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4409 Wood FlooringDo not classify end-matched wood flooring in 4409.10.2000, 4409.22.2500, and 4409.29.26. These classifications provide only for flooring that is straight cut on its ends.
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“Wood continuously shaped along its ends” describes flooring that is T&G on its ends. “Other” does not.
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Fiberboard flooring
Do not confuse the terms “laminate flooring” – not a legal tariff term – and “similar laminated wood” in heading 4412. “Laminate flooring”, i.e. solid fiberboard flooring is classifiable in heading 4411. 4412.99.5105 is not correct for this merchandise. Fiberboard flooring should be classified in 4411.12.2000, 4411.13.2000, or 4411.14.2000, depending on thickness:
NOT 4412
NY N238576
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Fiberboard Moldings
Fiberboard (MDF) flooring moldings ( or “accessories”) are not classified as flooring. They are usually classified in 4411.12.9010, 4411.13.9010, or 4412.14.9010.
NOT FLOORING
NY N067510
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Tileboard 4411
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Fiberboard “Laminate” flooring is NOT classifiable as “Tileboard” (e.g., 4411.92.3000). Tileboard is a heavily coated fiberboard that imitates tile and is usually waterproof. Witex USA Inc. v. U.S.
“Aquatile”
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Multilayer wood flooring, face≥4mm thick
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Additional US Note 5(b)
If your wood flooring panel is multilayer and the face ply is 4mm or more in thickness, it is classifiable in heading 4418.
≥4mm thick
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4412 Parana Pine Plywood
Do not classify your plywood as having a face ply of Parana pine (Araucaria angustifolia). This product does not currently exist in
the plywood market today. There is also a ban on export of these logs from Brazil. They are not harvested in China. There should be no goods classified in 4412.39.1000, 4412.94.6000, or 4412.99.6000
The correct classification for Radiata pine plywood (with both outer plies of coniferous wood) is 4412.39.4061, .4062, or .4069. NY N295153
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Plywood containing a layer of particle board
Do not use HTSUS numbers 4412.99.0600 and 4412.99.5701. It is very unlikely any panels would be classified here. Panels with a layer of fiberboard are not classifiable here; fiberboard and particleboard are not the same thing.
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Densified Wood 4413
Densified wood is defined in Note 2 to Chapter 44:
DO NOT classify plywood as “Densified wood” in 4413.00.0000. The wood
is chemically or physically treated to increase density and improve attributes. The wood is deeply impregnated with thermosetting plastics or molten metal and/or extreme compression. The density is very high, as much as 1.4 g/cm3 for compression and over 3.5 g/cm3 for metallized.
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Formwork for Concrete Constructional Work
Do not classify phenolic film-faced plywood in 4418.40.0000, “Formwork (shuttering) for concrete constructional work.
4418 requires that goods classified therein be recognizable articles used in the construction of a building.
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Explanatory Notes require that “Formwork” be assembled. ENs specifically state“plywood panels, even if surface treated for the purposes of concrete shuttering, are classified in heading 44.12.” This product is classified in 4412.33.5700. NY N291474
4412.33.5700
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Bamboo Moldings
Bamboo moldings are not classifiable in 4409.21. They are made of multiple laminated pieces of bamboo, or agglomerated strands. The are classifiable under 4418.91.9095.
Not for Duplication
NY N094275
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Bamboo FloorsDO NOT classify vertical, strand, or plywood flooring in 4418.73.6000. Only “horizontal” bamboo flooring should be classified in this subheading.
“Horizontal” is multilayer bamboo with unidirectional grain (parallel grains each layer)
Vertical 4418.73.9000
Engineered 4412.10.0500Or 4418.73.7000
Strand or “strand woven” 4418.91.9005
HORIZONTAL4418.73.6000
VERTICAL4418.73.9000
ENGINEERED4412.10.0500
STRAND4418.91.9005
NY N011396, N287566
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Edge-glued LumberEdge-glued lumber is only LUMBER, i.e., a non-dedicated building material. 4421.99.9400
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Edge-glued lumber. Square cut, no dedicated use
Profiled, edge-glued wood is NOT edge-glued lumber
EDGE-GLUED LUMBER
NOT EDGE-GLUED LUMBER
NY N283740
NY N309540
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