| Title: | ENF - DRILLED SOFTWOOD LUMBER |
|---|---|
| Date: | 1998-07-01 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : HOWARD ZZ-DUCHAN
SUBJECT : ENF - DRILLED SOFTWOOD LUMBER
DATE : 06/30/1998
TO : ALL CMC DIRECTORS, PORT DIRECTORS, TRADE COMPLIANCE PROCESS/
OWNERS, FIELD NATIONAL IMPORT SPECIALISTS, IMPORT SPECIALISTS,/
AND INSPECTORS
FROM : DIRECTOR, TRADE AGREEMENTS
SUBJECT: REVOCATION OF NY RULING ON SOFTWOOD LUMBER
PLEASE PASS TO BROKERS, IMPORTERS AND ALL OTHER INTERESTED PARTIES
THE U.S. CUSTOMS SERVICE ISSUED A FINAL RULING (HQ 96155 DATED
JUNE 26, 1998) THAT REVOKES A 1997 RULING (NY B81564) ISSUED BY
CUSTOMS IN NEW YORK CONCERNING THE TARIFF CLASSIFICATION OF
DRILLED SOFTWOOD LUMBER STUDS. THE FINAL RULING CONFIRMS THE
CUSTOMS PROPOSED REVOCATION OF THE NEW YORK RULING AND CLASSIFIES
DRILLED SOFTWOOD LUMBER STUDS IN HEADING 4407, HARMONIZED TARIFF
SCHEDULE OF THE U.S. (HTSUS), WHICH HEADING IS COVERED BY THE
SOFTWOOD LUMBER AGREEMENT WITH CANADA. THE 1997 RULING CLASSIFIED
THE DRILLED STUDS IN HTSUS HEADING 4418 WHICH WAS NOT COVERED BY
THE SOFTWOOD LUMBER AGREEMENT.
THE NEW RULING WILL BE PUBLISHED IN THE CUSTOMS BULLETIN ON JULY
1, 1998. FOR THE PERSON WITH THE RULING, THE NEW RULING BECOMES
EFFECTIVE PURSUANT TO LAW 60 DAYS AFTER PUBLICATION. FOR OTHER
PARTIES IT WILL BE EFFECTIVE FOR MERCHANDISE RELEASED ON OR AFTER
JULY 1, 1998.
ACTION: EFFECTIVE JULY 1, 1998, PERMITS WILL BE REQUIRED FOR ALL
OF THE REFERENCED SOFTWOOD RELEASED ON OR AFTER JULY 1, 1998,
EXCEPT FOR NORTH STAR WHOLE SALE LUMBER, THE RECIPIENT OF THE
ORIGINAL RULING. HE WILL HAVE 60 DAYS AFTER THE PUBLICATION.
THE FOLLOWING Q & A'S ARE INTENDED FOR GUIDANCE ONLY:
Q. WHAT IS THE MERCHANDISE WHICH WAS THE SUBJECT OF THIS ACTION
BY U.S. CUSTOMS?
A. THE MERCHANDISE CONSISTS OF DRILLED SOFTWOOD STUDS USED IN
FRAMING APPLICATIONS. THE STUDS MEASURE 2" BY 4" AND 2" BY 6",
IN LENGTHS OF 8 TO 10 FEET AND FEATURE TWO ONE-INCH DIAMETER
HOLES DRILLED IN THE CENTER OF EACH BOARD (ABOUT 16 INCHES FROM
EACH END).
Q. WHAT WAS THE PURPOSE OF THE HOLES?
A. IT WAS INDICATED IN THE ORIGINAL RULING REQUEST THAT THE
HOLES SERVED THE PURPOSE OF ALLOWING ELECTRIC WIRING CABLES OR
PIPES TO BE RUN THROUGH THE STUDS DURING WALL CONSTRUCTION.
Q. WHAT OTHER MERCHANDISE, IF ANY, WILL BE DIRECTLY AFFECTED BY
THIS RULING?
A. BOARDS OF VARIOUS DIMENSIONS DRILLED WITH HOLES TO
ACCOMMODATE ELECTRICAL WIRES OR PLUMBING WILL PROBABLY BE
AFFECTED.
Q. WHAT IS HEADING 4407?
A. HEADING 4407 IS THE PROVISION IN THE HARMONIZED TARIFF
SCHEDULE OF THE U.S. THAT PROVIDES FOR WOOD SAWN OR CHIPPED
LENGTHWISE, SLICED OR PEELED, WHETHER OR NOT PLANED, SANDED OR
FINGER-JOINTED, OF A THICKNESS EXCEEDING 6 MM.
Q. WHAT IS HEADING 4418?
A. HEADING 4418 IS THE PROVISION IN THE HARMONIZED TARIFF
SCHEDULE OF THE U.S. WHICH PROVIDES FOR, AMONG OTHER THINGS,
BUILDERS JOINERY AND CARPENTRY OF WOOD.
Q. WHY IS IT IMPORTANT WHICH PROVISION COVERS THIS MERCHANDISE?
A. ITEMS IN HEADING 4407 ARE SUBJECT TO THE 1996 UNITED
1STATES/CANADA SOFTWOOD LUMBER AGREEMENT AND ITEMS IN HEADING 4418
ARE NOT.
Q. WHY WAS THE ORIGINAL RULING RECONSIDERED?
A. THE ISSUANCE OF THE ORIGINAL RULING RESULTED IN QUESTIONS
FROM THE PRIVATE SECTOR REGARDING THE CORRECTNESS OF CUSTOMS'
CLASSIFICATION OF THE SUBJECT DRILLED SOFTWOOD LUMBER. IN
ADDITION TO ISSUES CONCERNING THE CORRECTNESS OF THE
CLASSIFICATION, THE ALLEGATION WAS MADE THAT CUSTOMS' DECISION
COULD RESULT IN CIRCUMVENTION OF THE 1996 U.S./CANADA SOFTWOOD
LUMBER AGREEMENT.
Q. WHEN IS THE NEW RULING EFFECTIVE?
UNDER THE PROVISIONS OF 19 U.S.C 1625, THE RULING IS EFFECTIVE 60
DAYS FROM THE DATE OF ITS PUBLICATION IN THE CUSTOMS BULLETIN.
Q. WHEN WILL PUBLICATION TAKE PLACE?
A. JULY 1, 1998.
Q. WILL ALL IMPORTATIONS OF DRILLED SOFTWOOD LUMBER COVERED BY
THE RULING BE IMPACTED 60 DAY AFTER PUBLICATION IN THE CUSTOMS
BULLETIN?
A. NO, ONLY SOFTWOOD LUMBER IMPORTED BY THE PARTY-IN-INTEREST OF
THE ORIGINAL RULING WILL RECEIVE THE 60 DAY DELAYED EFFECTIVE
DATE PROVIDED BY 19 U.S.A. 1625. (ALL OTHER PARTIES WILL HAVE
THE CHANGE APPLIED ON JULY 1, 1998.)
Q. DOES THIS MEAN ALL OTHER PARTIES WILL BE IMPACTED IMMEDIATELY?
A. PARTIES, OTHER THAN THE ORIGINAL RULING RECIPIENT, WILL HAVE
THE RULING APPLIED TO MERCHANDISE COVERED BY THE RULING WHICH IS
RELEASED ON OR AFTER JULY 1, 1998.
Q. IS THIS FAIR?
A. 19 U.S.C. 1625 ONLY RELATES TO THE RULING RECIPIENT AND NOT
THIRD PARTIES. ALL PARTIES WERE NOTIFIED IN THE CUSTOMS BULLETIN
OF APRIL 15, 1998 (AND PREVIOUSLY IN A FEDERAL REGISTER NOTICE OF
OCTOBER 27,1997) THAT THE RULING WAS UNDER REVIEW AND COULD NO
LONGER BE RELIED UPON.
SHOULD YOU HAVE ANY QUESTIONS ON THE RULING PLEASE CONTACT
MS. JOSEPHINE BAIAMONTE, OFFICE OF REGULATIONS AND RULINGS,
(202) 927-2394.
PLEASE REFER ANY OPERATIONAL QUESTIONS TO MR. HOWARD DUCHAN,
OFFICE OF FIELD OPERATIONS, (202) 927-0639.
JOYCE METZGER