CLA-2-44:OT:RR:NC:1:130

Ms. Angela Lattimore
Shaw Industries Group, Inc.
616 E. Walnut Ave
Dalton, GA 30720

RE: The tariff classification of magnesium fiberboard flooring from China

Dear Ms. Lattimore:

In your letter, dated February 4, 2019, you requested a binding tariff classification ruling. The request was returned to you for additional information, which was received by this office on June 14, 2019. The request was returned to you a second time for additional information, which was received by this office on July 26, 2019. The ruling was requested on magnesium fiberboard flooring panels. A sample and product information were submitted for our review and will be retained for reference.

The product is identified as “PMgO” flooring. The flooring panel sample measures approximately 7.5”(W) x 47” (L) x 10mm thick. The board is constructed a fiberboard core that consists of approximately 80% wood fiber and 20% magnesium components and filler additives. The core is faced with a melamine-impregnated, photographic paper layer, and is backed with a melamine-impregnated, balancing paper layer. The back of the panel is overlaid with a 1.5mm-thick ethylene-vinyl acetate (EVA) foam sheet (the floorboard is approximately 9mm thick). This EVA sheet functions as an underlayment. The fiberboard core is constructed of wood fiber that is bonded by a reaction that occurs when the fiber is mixed with the magnesium and additive components. The resulting panel has a density exceeding 1.0 g/cm3. The panel is tongued and grooved on all edges and ends with an interlocking profile.

The magnesium fiberboard flooring is an innovation in fiberboard flooring products in that it is wood fiber bonded with magnesium components, as opposed to organic resins. Nonetheless, the product remains undeniably composed of bonded wood fiber as are the products of heading 4411, Harmonized Tariff Schedule of the United States (HTSUS). The instant panel does not meet the definition of “medium density fiberboard” (MDF) as set forth in the Explanatory Notes to the Harmonized System (ENs). The ENs explain that MDF is manufactured from dry wood fibers bonded with thermosetting resins. As the instant panel is not bonded with resins, it is precluded from classification as MDF. The PMgO board is instead bonded with inorganic magnesium compounds. As such, it is more specifically described by the language, “fiberboard of wood…whether or not bonded with resins or other organic substances.”

The applicable subheading for magnesium fiberboard flooring panels will be 4411.92.4000, HTSUS, which provides for Fiberboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances: Other: Of a density exceeding 0.8 g/cm3 : Other: Other: Other. The rate of duty will be 6 percent ad valorem.

The EVA layer on the panel back does not impact classification. Additional US Note 1(c) to the HTSUS defines the term “surface covered”:

The term "surface covered," as applied to the articles of headings 4411 and 4412, means that one or more exterior surfaces of a product have been treated with creosote or other wood preservatives, or with fillers, sealers, waxes, oils, stains, varnishes, paints or enamels, or have been overlaid with paper, fabric, plastics, base metal, or other material.

The EVA layer meets the definition of a surface covering. The photographic paper and backing paper layers also constitute surface coverings.

Effective July 6, 2018, the Office of the United States Trade Representative imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(e), HTSUS.  For additional information see “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710).  Products of China that are provided for in subheading 9903.88.03 and classified in one of the subheadings enumerated in U.S. note 20(e) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by subheading 9903.88.03.

Products of China classified under subheading 4411.92.4000, HTSUS, unless specifically excluded, are subject to the 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 4411.92.4000, HTSUS, listed above.

The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading. 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 wood flooring in question, which is tongued and grooved with an interlocking profile, may be subject to an ITC exclusion order dealing with certain laminated floor panels (ITC Investigation No. 337-TA-545). The determination of whether your flooring panels are subject to the ITC Exclusion Order will be made independently of the tariff classification ruling. For further information on admissibility please contact your local Customs office prior to importation of the goods. If you require a written ruling on whether the exclusion order applies to your flooring panels, you should submit a ruling request with a sample of the flooring panels to the following office: U.S. Customs and Border Protection, IPR & Restricted Merchandise Branch, Regulations and Rulings, 90 K St., NE, 10th Floor, Washington, D.C. 20229-1177.

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