RE: Classification, country of origin, and application of trade agreements for engineered flooring cores

U.S. Department of Homeland Security U.S. Customs and Border Protection National Commodity Specialist Division One World Trade Center, Suite 51.201 New York, NY 10007 U.S. Customs and Border Protection N366014 October 19, 2026 CLA-2-44:OT:RR:NC:N5:130 CATEGORY: Classification; Origin; Trade Programs TARIFF NO.: 4421.99.9880 Mr. Martin Giroux Lauzon Distinctive Hardwood Flooring 2101 Côte des Cascades, Papineauville, QC J0V 1R0 Canada RE: Classification, country of origin, and application of trade agreements for engineered flooring cores Dear Mr. Giroux: In your letter, dated October 14, 2026, you requested a binding classification, country of origin, and application of trade programs ruling on wood engineered flooring cores. Information and photos were submitted for our review. The product under consideration is two-layer panels comprising the core of engineered flooring. The panels consist of red pine, white pine, basswood, or SPF blocks adhered to a veneer backing of eucalyptus wood. The blocks and veneer are the backing to which a hardwood veneer will be affixed in the United States to form finished flooring panels. While the panel does consist of a veneer and lumber blocks, it does not meet the definition of a veneered panel, as set forth in the Explanatory Notes to the Harmonized System for heading 4412: a veneered panel is a panel “consisting of a thin veneer of wood affixed to a base, usually of inferior wood, by glueing under pressure. Wood veneered on to a base other than wood (e.g., panels of plastics) is also classified here provided it is the veneer which gives the panel its essential character.” The veneer is not affixed to a base; the veneer is the base. Also, the veneer does not impart the essential character of the panel. Therefore, this construction of panel does not meet the terms of heading 4412. You suggest that the panels are classifiable in heading 4418. We disagree. In their condition as imported, the panels are not recognizable articles used in the construction of a building. Therefore, classification in 4418 is precluded. The applicable subheading for the engineered flooring core will be 4421.99.9880, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other articles of wood: Other: Other: Other: Other: Other. The general rate of duty will be 3.3 percent ad valorem. You outline a scenario wherein lumber blocks of Canadian origin (heading 4407) are combined with a veneer of Paraguay, Uruguay, or Brazil origin (heading 4408) in Canada into the panels classifiable in heading 4421. The United States-Mexico-Canada Agreement (USMCA) was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note (“GN”) 11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states: For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a “good originating in the territory of a USMCA country” only if— the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries; the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials; the good is a good produced entirely in the territory of one or more USMCA countries using non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); The panels are not wholly obtained or produced in one or more USMCA country. Therefore, we proceed to subdivision (o). For goods of heading 4421, Subdivision (o) states that, in order to be subject to USMCA, the manufacturing in a USMCA country must result in “A change to headings 4401 through 4421 from any other heading, including another heading within that group.” Wood of heading 4407 and veneers of heading 4408 are combined in Canada to become an article of heading 4421. Therefore, the rule is met and the panels qualify for USMCA preferential treatment. The country of origin for duty purposes is Canada. Goods subject to the USMCA under subheading 4421.99.9880, HTSUS, are unconditionally duty-free. The "country of origin" is defined in Title 19, Code of Federal Regulations (CFR), Section 134.1(b) as: …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 this part; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin. Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. See 19 C.F.R. § 102.11. 19 CFR Part 102.11(a) provides that the country of origin of a good is the country in which: (1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. The panels are neither “wholly obtained or produced” nor “produced exclusively from domestic materials.” Therefore, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the artworks and paragraph (a)(3) must be applied next to determine the origin of the finished article. Section 102.20 (19 CFR 102.20) sets forth the applicable tariff change rules that address the current scenario. Goods classified in heading 4421: “A change to any other good of heading 4413 through 4421 from any other heading, including another heading within that group.” The lumber and veneers undergo this change. Therefore, the panels are of Canadian origin for marking purposes. They can be marked “Made in Canada” or “Product of Canada”, as appropriate. This ruling does not address the applicability of any additional duties, taxes, fees, exactions and/or other charges, which may apply to the goods discussed herein. This includes, but is not limited to, tariffs and other duties as provided for in Subchapter III to Chapter 99, HTSUS. Thus, for example, in addition to the classification stated above, the merchandise covered by this ruling may also need to be reported with either the Chapter 99 provision under which an additional tariff applies or one of the Chapter 99 provisions covering exceptions to such tariffs. For further information to assist with the importation process, please refer to the frequently updated Cargo Systems Messaging Service (CSMS) messages at https://www.cbp.gov/trade/automated/cargo-systems-messaging-service and the Trade Remedies page at https://www.cbp.gov/trade/programs-administration/trade-remedies. 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 U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note 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, please contact National Import Specialist Laurel Duvall at laurel.duvall@cbp.dhs.gov. Sincerely, (for) James P. Forkan Director National Commodity Specialist Division