The tariff classification and country of origin of melamine stone plastic composite floor

N323990 February 22, 2022 CLA-2-39:OT:RR:NC:N1:137 CATEGORY: Classification TARIFF NO.: 3918.90.1000 Kevin Williams Clark Hill PLC 130 E. Randolph Street, Suite 3900 Chicago, Illinois 60601 RE: The tariff classification and country of origin of melamine stone plastic composite floor Dear Mr. Williams: In your letter dated January 25, 2022, you requested a tariff classification ruling, on behalf of your client Cali Bamboo, LLC. The product under consideration is stone plastic composite laminate tile click flooring (SPC flooring). Measuring 8 mm in thickness, the SPC flooring consists of four distinct layers: a 0.7 mm top wear layer of melamine impregnated deco sheet, a core of stone plastic composite, bottom layer of impregnated kraft paper and a backing layer of cross-linked polyethylene. While some products consist of a wear layer and a decorative layer, this product combines the two components into one layer. Documentation indicates that the top wear layer, bottom layer and backing layer are shipped to Vietnam from China. The core layer is produced in Vietnam from raw materials originating in Vietnam, Switzerland, and China. In Vietnam, the top layer, core layer, bottom layer and backing layer are combined. Adhesive is applied to the layers and they are pressed together while the adhesive cures. The sheets are then cut into smaller planks. A click lock shape is also cut into the plank during the cutting process. The cut planks are packaged and exported to the United States. The applicable subheading for the melamine stone plastic composite floor will be 3918.90.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for floor coverings of plastics, whether or not self-adhesive, in rolls or in the form of tiles: of other plastics: floor coverings. The general rate of duty will be 5.3 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 the World Wide Web at https://hts.usitc.gov/current. 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. We find that the processing performed in Vietnam with respect to production of the core layer, fusing of the layers and cutting into planks does constitute a substantial transformation of the imported components and parts into "products of" Vietnam. The manufacturing process in Vietnam transforms the non-originating components and parts to produce the finished SPC flooring planks. It creates a new and different article of commerce with a distinct character and use that is not inherent in the components imported into Vietnam. Therefore, the "product of" requirement has been satisfied. It is of the opinion of this office that the country of origin for the SPC flooring will be Vietnam. 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 Christina Allen at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division