CLA-2-44:OT:RR:NC:2:230
Ms. Lizbeth R Levinson
Kutak Rock LLP
1101 Connecticut Avenue
Suite 1000
Washington, D.C. 20036
RE: The country of origin of engineered wood flooring manufactured in multiple countries
Dear Ms. Levinson:
This is in response to your letter, dated June 27, 2011, requesting a ruling on the country of origin of engineered wood flooring manufactured in multiple countries.
You outline a scenario wherein plywood is manufactured in Brazil, Canada, Malaysia, Latvia, Finland and other countries (not specified). The plywood is exported to China, where one or more layers of wood veneer (each measuring under 4mm in thickness) are laminated onto the plywood. The product is then cut to size, profiled, and finished. You state that the finished goods will be exported to the United States from the country where finishing takes place.
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 cutting, profiling (tongue and grooving), and finishing do not effect a substantial transformation of the plywood. Legal Note 4 to Chapter 44, Harmonized Tariff Schedule of the United States (HTSUS), indicates that articles of Heading 4412, HTSUS, can be continuously shaped (e.g., tongue and grooved) in the manner of articles of Heading 4409, HTSUS, provided that the shaping does not render the product an article of a different heading. Both plywood and tongue and grooved, engineered flooring panels are specifically provided for within Heading 4412, HTSUS. Therefore, neither the cutting of plywood to size nor the continuous shaping of strips renders the panels articles of a different heading. Finishing does not substantially transform the flooring panels either; surface-covered, finished plywood and floor panels are also provided for within Heading 4412, HTSUS. The cutting, shaping, and finishing, therefore, do not render a new and different article.
Because no substantial transformation is effected by any of the manufacturing taking place in China, the country of origin for the complete flooring panels is Brazil, Canada, Malaysia, Latvia, Finland and other countries (not specified).
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 (646) 733-3035.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division