HS 440398 Of eucalyptus (Eucalyptus spp.)

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What products does HS 440398 cover?

This subheading covers coniferous or non-coniferous wood, in the rough, whether or not stripped of bark or sapwood, or roughly squared, specifically of eucalyptus (Eucalyptus spp.). According to the World Customs Organization's Harmonized System Explanatory Notes, this category includes logs, poles, piles, and timbers of eucalyptus that have not undergone further processing beyond rough shaping or removal of bark. The USITC Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that this classification is for raw eucalyptus wood in its primary form, before significant milling or fabrication.

What falls outside HS 440398?

The following products are excluded from HS 440398: wood that has been significantly shaped, such as sawn timber with finished dimensions, planed wood, or wood grooved or tongued. Also excluded are wood waste, charcoal, and wood in chips or shavings. For instance, eucalyptus lumber intended for construction or furniture making, even if only roughly sawn, would typically fall under HS 4407, while eucalyptus firewood would be classified elsewhere, often under HS 4401.

What are common classification mistakes for HS 440398?

A common error is misclassifying eucalyptus wood that has undergone even minor processing beyond the "rough" stage. For example, wood that has been planed or cut to specific dimensions, even if not fully finished, may be incorrectly entered under 440398. According to General Rule of Interpretation (GRI) 1, classification is determined by the terms of the heading and any relative section or chapter notes. If wood is shaped beyond the rough squaring or bark removal described in heading 4403, it should be classified in a more specific heading, such as 4407 for sawn wood.

How should importers classify products under HS 440398?

The correct procedure for classifying eucalyptus wood under HS 440398 involves a thorough examination of the product's physical state and the degree of processing. Importers and customs brokers must verify that the wood is in its rough form, stripped of bark or sapwood, or only roughly squared, and that it is indeed of the Eucalyptus genus. Consulting the official nomenclature of the importing country, such as the USITC HTS or the UK Trade Tariff, and comparing the product's characteristics against the descriptions and any relevant explanatory notes is crucial for accurate classification.

How is the duty calculated for products under HS 440398?

A shipment of 10 cubic meters of rough eucalyptus logs, declared at a customs value of $5,000 USD, would attract a US duty of $250.00. This is calculated using the Most Favored Nation (MFN) duty rate of 5.0% ad valorem, applied to the declared customs value ($5,000 USD × 5.0% = $250.00). This calculation is based on the duty rate published in the USITC Harmonized Tariff Schedule for HS code 440398, assuming no preferential trade agreements apply.

Which trade agreements reduce duties for HS 440398?

Several free trade agreements may reduce the applicable duty rate for HS 440398. For instance, under the Generalized System of Preferences (GSP), eligible developing countries may benefit from a preferential rate of Free. Countries such as Brazil and Uruguay, which are significant producers of eucalyptus, often benefit from such schemes. To claim these preferences, importers typically require a GSP Form A certificate of origin, or a self-certified origin statement for agreements like the USMCA, depending on the specific trade agreement and importing jurisdiction.

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