MAR-2-48:OT:RR:NC:N5:130
Sung Hwan Kim
Seomuntimber Co., Ltd.
1-34, Daegotseo-ro, Daegot-myeon,
Gimpo-si, Gyeonggi-do, 10042
Republic of Korea
Korea, South
RE: The country of origin of solid wood flooring
Dear Mr./Mrs./Ms. Kim:
In your letter, dated October 30, 2023, you requested a binding country of origin ruling on solid wood flooring. Product and manufacturing information was submitted for our review.
Your request concerns the country of origin of solid hard maple wood flooring. The panel measures 1800 millimeters in length, 60 millimeters in width, and 22 millimeters in thickness. The flooring panel is tongued and grooved on the edges and ends and UV-painted.
In your letter, you outline the manufacturing of the wood flooring. You describe a scenario wherein solid, finger-jointed maple wood boards from China are shipped to South Korea, where they will be tongued and grooved, sanded, UV-coated, inspected, and packed.
Section 134.1(b) of the Customs and Border Protection 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 and Border Protection 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 or where a substantial transformation of materials occurs in order to determine country of origin.
The finger-jointed, solid hard maple wood boards from China are classified in heading 4407, Harmonized Tariff Schedule of the United States (HTSUS). In South Korea, the wood boards are tongued and grooved, sanded, and UV-coated. The resulting panels are classified in heading 4418, HTSUS. These manufacturing processes constitute substantial transformation as undedicated, multiuse materials – wood boards – are transformed into new and different articles with a distinctive name, character or use - continuously shaped wood flooring. Therefore, the country of origin of the flooring panels is South Korea.
In your letter, you state that the hard maple wood flooring from South Korea should be classified in subheading, 4409.29, Harmonized Tariff Schedule of the United States (HTSUS). We note that this is incorrect. The correct classification for the tongued and grooved, UV-coated, solid hard maple wood flooring is 4418.99.9105, HTSUS, which provides for Builders’ joinery and carpentry of wood, including cellular wood panels and assembled flooring panels; shingles and shakes: Other: Other: Other: Wood flooring. The rate of duty will be 3.2 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 CBP and submit a request for a new ruling in accordance with 19 CFR 177.2. You should also be aware 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 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, contact National Import Specialist Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division