The country of origin of multilayered wood flooring panels

N335239 September 28, 2023 MAR-2-44:OT:RR:NC:N5:130 CATEGORY: Country of Origin Mr. Kevin Gessner Creative At Home USA, Inc. 30 N Gould Street, Suite 5428 Sheridan, WY  82801 RE:      The country of origin of multilayered wood flooring panels Dear Mr. Gessner: In your letter, dated September 11, 2023, you requested a binding country of origin ruling for multilayered wood flooring panels.  Product information was submitted for our review.  In your letter, you outline a scenario wherein multilayer wood flooring panels are manufactured in Vietnam and then shipped to China for sanding, coating, and packaging.  You indicate that the panels are fully manufactured in Vietnam.  The plywood substrate is manufactured in Vietnam from veneers that are sliced in Vietnam.  The face veneer is also sliced in Vietnam and applied to the substrate in Vietnam.  Finally, the flooring panels are tongued and grooved in Vietnam.  Subsequently, the panels are shipped to China where they are sanded, stained, and coated with clear, protective coatings. 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 where a substantial transformation of materials occurs in order to determine country of origin. The multilayer wood flooring panels are fully manufactured in Vietnam.  The manufacturing of veneers into a plywood panel constitutes a substantial transformation.  Because this takes place in Vietnam, Vietnam is the country of origin.  Sanding and coating operations do not constitute a substantial transformation.  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