CLA-2-94:OT:RR:NC:1:130
Ms. Jessica Parks
JP Reynolds Co., Inc.
101 SE 21st Street
Fort Lauderdale, FL 33316
RE: The tariff classification of collapsible sheds from China
Dear Ms. Parks:
In your letter, dated August 24, 2018, you requested a binding classification ruling on behalf of your client, Yacht Protect, LLC. The request was returned to you for additional information, which was received by this office on September 27, 2018. The ruling was requested on collapsible storage sheds. Product documentation and photos were submitted for our review.
The product being considered is a collapsible steel storage shed. The shed, when assembled, measures approximately 16’ long by 8’ wide by 7’ high. The unit is generally rectangular and has a locking double door at one end. As shown, the sheds have walls, a floor, and a ceiling, but have no structural interior elements such as shelves, furniture, or fixtures. The sheds have substantial wall and base framing to support the structure. You state that they are used for storage of surplus items used in the repair of yachts. They presumably can be moved by forklift, but you indicate that the sheds are designed to be assembled and placed in a single, static location. You indicate that the sheds are collapsible simply for efficiency of shipment, and they are not intended to be collapsed again after assembly. The units do have optional wheels, which are present for the purpose of maneuvering the shed into a limited space. The sheds are suitable for outdoor use and are resistant to the elements.
Note 4 to Chapter 94, Harmonized Tariff Schedule of the United States (HTSUS), states that “For the purposes of heading 9406, the expression "prefabricated buildings" means buildings which are finished in the factory or put up as elements, entered together, to be assembled on site, such as housing or worksite accommodation, offices, schools, shops, sheds, garages or similar buildings”. The collapsible shed meets this definition. It is a specifically named structure that is imported complete and ready for assembly. It is complex and substantial, cannot be quickly assembled and disassembled, and functions essentially as a permanent building. It is constructed in dimensions easily sufficient for human entry, and is weather-resistant. Therefore, we find that the structures are classifiable as prefabricated buildings of metal.
The applicable subheading for the collapsible sheds is 9406.90.0030, HTSUS, which provides for Prefabricated buildings: Other: Of metal: Other. The rate of duty will be 2.9% ad valorem.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the General Rules of Interpretation (GRIs). While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989).
The ENs to heading 9406, HTSUS, state that
(t)he buildings of this heading may or may not be equipped. However, only built in equipment normally supplied is to be classified with the buildings. This includes electrical fittings (wiring, sockets, switches, circuit breakers, bells, etc.), heating and air conditioning equipment (boilers, radiators, air conditioners, etc.), sanitary equipment (baths, showers, water heaters, etc.), kitchen equipment (sinks, hoods, cookers, etc.) and items of furniture which are built in or designed to be built in (cupboards, etc.).
While you indicate that there are no additional fittings in the sheds, please note that any additional equipment or furniture that may be added in the future must be identified and classified separately.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 9406.90.0030, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 9406.90.0030, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 World Wide Web at https://hts.usitc.gov/current.
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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division