CLA-2-44:OT:RR:NC:N1:130
Mr. Danny Harrington
Galleher, LLC
9303 Greenleaf Ave.
Santa Fe Springs, CA 90670
RE: The country of origin of multilayer wood flooring manufactured in two countries
Dear Mr. Harrington:
In your letter, dated April 17, 2019, you requested a country of origin ruling. Product information was submitted for our review.
You outline a scenario in which 11mm-thick, birch plywood is manufactured in Russia. The birch plywood will form the substrate for a multilayer wood flooring panel. A 4.01mm-thick wood veneer is cut and laminated onto the birch plywood base in Cambodia. In Cambodia, the plywood will also be tongue-and-groove profiled, textured, and finished with a transparent coating. Plywood is defined by the Explanatory Notes to the Harmonized System as panels “consisting of three or more sheets of wood glued and pressed one on the other and generally disposed so that the grains of successive layers are at an angle.” This definition describes the both the birch plywood substrate and the completed flooring panel. Additionally, we consider Additional US Note 5(b) to Chapter 44, Harmonized Tariff Schedule of the United States (HTSUS), which states that Heading 4418 includes “multi-layer assembled flooring panels having a face ply 4 mm or more in thickness.”
Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry of origin" means the country of manufacture, production or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908).
In the instant case, the product is first composed of Russian plywood, which meets the definition of “plywood” and is classifiable in heading 4412. The final product, after Cambodian manufacturing, still meets the definition of “plywood”, but in accordance with Additional US Note 5(b), is classifiable in heading 4418 (this is assuming that the texturing does not decrease the thickness of the panel to less that 4mm. Classification is based on the condition of the merchandise at the time of importation). While the flooring panel does undergo a change of heading, we find that the thickness of the face ply (which governs the heading change) does not yield a new and different article. Thus, we find that the labor completed in Cambodia does not substantially transform the product and Russia remains the country of origin.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division