CLA-2-68:OT:RR:NC:N1:128
Mr. Kevin Williams
Clark Hill PLC
130 E. Randolph Street, Suite 3900 Chicago, IL 60601
RE: The tariff classification and country of origin of cellulose fiber-cement flooring.
Dear Mr. Williams:
In your letter dated January 20, 2023, you requested a tariff classification and country of origin determination ruling on behalf of your client, Cali Bamboo, LLC. A sample was submitted with your ruling request and was forwarded to the Customs and Border Protection Laboratory for analysis. This analysis has been completed.
The merchandise under consideration is described as MgO Laminate Tile Click Flooring. The tile we received measured approximately 15.25 centimeters long by 15 centimeters wide by .82 centimeters thick. It consisted of four layers. The top layer is an impregnated decorative paper which measured approximately .01 centimeters thick. The second layer is a magnesium oxide (MgO) cellulose fiber-cement board which measured approximately .8 centimeters thick. The third layer is impregnated balance paper which measured approximately .01 centimeters thick. The fourth layer is the backing and measured approximately .2 centimeters thick.
Laboratory analysis has determined that the sample is comprised of magnesium oxide-based cellulose fiber-cement.
The applicable subheading for the MgO Laminate Tile Click Flooring will be 6811.82.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles of asbestos-cement, of cellulose fiber-cement or the like: Not containing asbestos: Other sheets, panels, tiles and similar articles.” The general rate of duty will be Free.
With regards to the country of origin, you state that the MgO board, which is made of cellulose fiber-cement, is manufactured in China, then cut to size and sanded before being shipped to Vietnam. The impregnated decorative paper, impregnated balance paper, and backing are manufactured in Vietnam. In Vietnam, the decorative paper, cellulose fiber-cement, balance paper, and backing are layered and then laminated in a hot press. The boards are cut to size, and then edge-worked to create a click-lock profile. The finished tiles are then packed and shipped.
In your ruling request you suggest that the country of origin of the MgO Laminate Tile Click Flooring should be Vietnam. We disagree.
The "country of origin" is defined in 19 CFR 134.1(b) as "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 this part.
When considering a product that may be subject to antidumping, countervailing, or other safeguard measures, the substantial transformation analysis is applied to determine the country of origin. See 19 C.F.R. § 102.0; HQ 563205, dated June 28, 2006; see also HQ 563205, dated September 16, 1996 (finding that "the term 'product of' at the least includes manufactured articles of such country or area" and that substantial transformation "is essentially the test used... in determining whether an article is a manufacture of a given country").
The courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff'd, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff'd, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
With respect to the MgO Laminate Tile Click Flooring, the MgO board is manufactured in China, and is identifiable upon importation into Vietnam as an article of cellulose fiber-cement. The subsequent actions in Vietnam, including the edge-working, do not change the nature of the MgO board; the final product remains an article of cellulose fiber-cement. The cellulose fiber-cement article does not lose its individual identity and is not substantially transformed into a new and different article in Vietnam. Thus, the country of origin of the MgO Laminate Tile Click Flooring will be China.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6811.82.0000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 6811.82.0000, HTSUS, listed above.
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 and Border Protection 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, please contact National Import Specialist Nicole Sullivan at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division