CAFC Affirms Classification Under HTS 4407 of Certain Lumber Intended for Use in Wood Trusses
In Millenium Lumber Distribution Ltd. v. U.S., the Court of Appeals for the Federal Circuit agreed with the Court of International Trade and U.S. Customs and Border Protection that the correct classification of certain cut lumber was under Harmonized Tariff Schedule heading 4407.
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Millenium imported 2x3, 2x4, and 2x6 spruce/pine/fir lumber, identified as cut lumber or "truss components" that were cut to various even-foot lengths ranging from 5 to 20 feet with a square-cut end, and an angle cut on the opposite end.
Customs maintained that Millenium's product was standard dimensional lumber and classified it under HTS 4407 as "Wood sawn or chipped lengthwise" a heading, which covers all wood and timber with few exceptions.
Millenium asserted that this lumber was intended for use in wood trusses, which are installed to form a triangular framework used in the support of rooftops and floors, and that it should be classified under HTS 4418 as "Builders' joinery and carpentry of wood" or alternatively under HTS 4421 as "Other article of wood".
In response to Millenium's alternate argument for classification under HTS 4421, the CAFC stated that Millenium had offered nothing to show that the lumber was sufficiently advanced, as imported, to be unusable as general sawn lumber for numerous purposes.
In reviewing Millenium's primary argument, the CAFC noted the Explanatory Notes covering the competing Harmonized Tariff provisions HTS 4407 and 4418. The Explanatory Note to HTS 4407 states that this heading covers all wood and timber products such as "sawn beams, planks, etc" and that the products need not have rectangular cuts or be of uniform lengths.
The Explanatory Note to HTS 4418, states that this heading applies to woodwork, including wood used in construction of any kind of building, etc., in the form of assembled goods or as recognizable pieces to be assembled.
The CAFC stated that while the subject lumber may have been used in some cases without re-cutting, this did not mean that it was dedicated solely or principally for use as a finished good (truss), or that the merchandise could be recognized as an unassembled piece of a truss. Accordingly, the Court ruled that it was properly classified under HTS 4407.
CAFC decision 07-1401 (dated 03/05/09) available at: http://www.cafc.uscourts.gov/opinions/07-1401.pdf