After reviewing quote after quote from flooring suppliers, we kept seeing the same version of the same problem. A developer or contractor gets a Chinese engineered hardwood quote at $1.80 FOB. They add 10 to 15% for duties and shipping. The project budget is set. Then the container clears customs and the actual cost is 35 to 50% higher because the 25% Section 301 tariff on HTS 4412 was never in the number. The freight forwarder did not mention it. The Chinese factory certainly did not mention it. The US distributor who sourced from China and marked it up was sometimes not even aware.
The Vietnam discovery came from running the math correctly. Once you add the Section 301 tariff to a Chinese engineered hardwood quote, Vietnamese product at 0% Section 301 and 0% AD/CVD beats it on landed cost more often than not, with comparable or better finish quality. But most US buyers had never been offered Vietnam directly because most US flooring distributors do not have factory relationships there. The product is available. The access was missing.
CARB compliancewas a third layer nobody was talking about clearly. Engineered hardwood can be rejected at customs or at delivery if the formaldehyde emissions from the core layers fail CARB Phase 2. Most buyers have never seen their supplier's compliance documentation. We confirm it before production and include it with every shipment.
We built Nexo so that the real number, with every cost included, is what you see before you commit.
José Cabrera · Founder, Nexo by Bahele
Miami, FL