CLA-2-44:OT:RR:NC:5:130
Mr. Harro Jakel
PanTim Wood Products, Inc.
15 Washington Ave.
Scarborough, ME 04074
RE: The classification and country of origin of multilayer wood flooring
Dear Mr. Jakel:
In your letter, dated January 5, 2024, you requested a binding tariff classification ruling. The ruling was requested for bamboo multilayer wood flooring panels. Product information and a sample were submitted for our review.
The request concerns bamboo “engineered” multilayer flooring panels. The panels are constructed of six layers of wood, none of which exceeds 6mm in thickness. The panels measure 110mm wide by 1200mm long by 11mm in thickness. The face ply consists of bamboo strips glued side by side and measures 0.5mm in thickness. The remaining layers are eucalyptus (a non-coniferous wood). The grains of the layers are oriented at a 90-degree angle to the adjacent layers. The panels are tongued and grooved on all edges and ends, and are finished with a colorless, transparent coating.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level (for the 4-digit headings and the 6 digit subheadings) and facilitate classification under the Harmonized Tariff Schedule of the United States (HTSUS) by offering guidance in understanding the scope of the headings and the General Rules of Interpretation (GRIs). While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989).
The instant multilayer flooring panels meet the definition of “plywood” as set forth in the ENs to heading 4412. “Plywood” is defined as a panel “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.” Plywood is provided for in heading 4412.
In your letter, you outline a scenario wherein the bamboo veneer is manufactured in China and shipped to Thailand for incorporation into a flooring panel. You indicate that the substrate consists of veneers cut in Thailand from Thai eucalyptus logs. The veneers are made into plywood in Thailand. The Chinese bamboo veneer will be laminated onto the plywood base in Thailand. The profiling, finishing, and coating will also take place in Thailand.
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). We must therefore determine if and/or where a substantial transformation of materials occurs in order to determine country of origin.
In Thailand, logs are substantially transformed into veneers and veneers are substantially transformed into plywood. When the Chinese bamboo veneer is added to the Thai plywood substrate, the resulting product is still plywood and the panel is not substantially transformed. The profiling and finishing does not substantially transform the panel. Therefore, the country of origin of the flooring panels is the country where the plywood is manufactured, Thailand.
The applicable subheading for the bamboo multilayer wood flooring panels will be 4412.10.0500, HTSUS, which provides for Plywood, veneered panels, and similar laminated wood: Of bamboo: Plywood. The rate of duty will be 8 percent ad valorem.
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 World Wide Web at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, please note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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