Wooden pencil slats classifiable as articles of wood, not wood sheets, under the tariff heading applied.

Imported Linden wood slats cut to specific size for exclusive use in pencil manufacture were held to be articles of wood under Heading 4421.90, not wood sheets or similar goods under Heading 4408.90. Heading 4408.90 was found to cover veneer sheets, plywood sheets and sawn, sliced or peeled wood, not processed slats that had assumed the character of identifiable articles for a specific end use. The accepted trade understanding of pencil slats supported the classification, so the Revenue's proposed heading was rejected and the appeal was allowed.

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Issues: Whether imported Linden wood slats used for manufacture of pencils were classifiable under Heading 4421.90 as articles of wood, or under Heading 4408.90 as wood sheets or similar goods.

Analysis: The disputed goods were cut to specific size and were meant exclusively for manufacture of wooden pencils. Heading 4408.90 covers veneer sheets, sheets for plywood and wood sawn length-wise, sliced or peeled, and not processed wood slats which have assumed the character of articles of wood for a specific end use. The lower classification was also inconsistent with the recognized tariff entry for pencil slats under the aligned classification, and the record showed that the goods were accepted as wooden slats used for pencil manufacture.

Conclusion: The goods were correctly classifiable under Heading 4421.90, and the Revenue's classification under Heading 4408.90 was not sustainable; the appeal was allowed.

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