There is currently a court action being litigated in the U.S. Court of International Trade (CIT) that is challenging U.S. Customs position on the tariff classification of certain engineered hardwood flooring. These flooring products are narrow strips that have a protective coating and are ready for installation as flooring at the time of importation. Customs currently classifies these products as plywood at a duty rate of 8.0%, based upon a court decision issued about three years ago by the U.S. Court of Appeals for the Federal Circuit (CAFC).

The goal of the present litigation is to exclude these types of flooring products from the plywood classification based upon an industry definition of the term plywood that would override the definition of plywood as defined by the CAFC. The current lawsuit seeks to reclassify these types of flooring under the duty free provision for other veneered panels and similar laminated wood.

Pending the outcome of the current litigation, importers of engineered wood flooring should take steps to protect their rights to receive refunds in the event that there is a favorable outcome to this litigation. Specifically, protests needed to be filed on the applicable entries, and if denied, court actions need to be filed to keep the protests alive.

If you have any questions on this issue, please contact your local Western Overseas representative.