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Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020 Not for Duplication

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Page 1: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

Classification Mistakes to AvoidLaurel Duvall, National Import Specialist 130, Customs & Border Protection

IWPA Annual Conference

April 2, 2020

Not for Duplication

Page 2: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel 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.

Not for Duplication

Page 3: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

3Not for Duplication

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

Page 4: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

4Not for Duplication

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/

Page 5: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

5Not for Duplication

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.

Page 6: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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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.

Not for Duplication

Page 7: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

7Not for Duplication

Goods in Heading 4409

Continously shaped SOLID woodNY 855719, etc.

Page 8: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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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.

Not for Duplication

SEAMSIndicate wood that is not solid.

NY M82325, etc.

Page 9: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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Goods NOT in Heading 4409

Not for Duplication

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.

Page 10: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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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

Not for Duplication

4409 Wood Flooring

Coated with UV coating, acrylic, PU, etc., 4418NY K86092, etc.

Far more likely product being imported

Page 11: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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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.

Not for Duplication

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

Page 12: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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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.

Not for Duplication

“Wood continuously shaped along its ends” describes flooring that is T&G on its ends. “Other” does not.

Page 13: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

13Not for Duplication

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

Page 14: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

14Not for Duplication

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

Page 15: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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Tileboard 4411

Not for Duplication

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”

Page 16: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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Multilayer wood flooring, face≥4mm thick

Not for Duplication

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

Page 17: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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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

Not for Duplication

Page 18: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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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.

Not for Duplication

Page 19: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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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.

Page 20: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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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.

Not for Duplication

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

Page 21: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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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

Page 22: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

22Not for Duplication

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

Page 23: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

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Edge-glued LumberEdge-glued lumber is only LUMBER, i.e., a non-dedicated building material. 4421.99.9400

Not for Duplication

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

Page 24: Classification Mistakes to Avoid...Classification Mistakes to Avoid Laurel Duvall, National Import Specialist 130, Customs & Border Protection IWPA Annual Conference April 2, 2020

Our Mission

We are the guardians of our Nation’s borders.

We are America’s frontline.

We safeguard the American homeland at and beyond our borders.

We protect the American public against terrorists and the instruments of terror.

We steadfastly enforce the laws of the United States while fostering our nation’s

economic security through lawful international trade and travel.

We serve the American public with vigilance, integrity and professionalism.

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