CLA-2-94:OT:RR:NC:1:130
Mr. Manish Lulla
Sadashuban, Inc.
97 Richards Ave.
Apt. A14
Norwalk, CT 06854
RE: The tariff classification of prefabricated home kit from Finland
Dear Mr. Lulla:
In your letter, dated July 21, 2019, you requested a binding classification ruling. The ruling was requested on a prefabricated home kit. Product documentation and photos were submitted for our review.
The merchandise under consideration is a Prefabricated Home Building Kit of Engineered Wood Logs (“Pluspuu Kit”). Your submission indicates that the kit is complete with all structural wood members cut to exact dimensions and imported in precise numbers to be assembled on site as a prefabricated home. You state that the house may range from 500 sq. ft. to 2000 sq. ft. The kits include all parts for construction of a home, including walls, doors, windows, trusses, roof, fasteners, insulation, balustrades, paneling, joists, and the like. Each kit is imported with a set of assembly drawings that note the numbering of each structural wood member and the location of its placement in the assembled house. Also included is a construction manual outlining the steps for assembling the structure. The house is designed to be permanently installed on a foundation, for example, of concrete.
The structural wood members are akin to glulam. They consist of four 2” x 8” plies of kiln-dried pine or spruce lumber laminated together to become 8” x 8” structural members. The members shown in the photos have two tongues on the upward-facing side, and two grooves on the downward-facing side. The tongues and grooves join – assisted by vertically-placed dowels and metal tensioning rods - to hold the structural wood members vertically in place. The joints also employ seals for water resistance. The members are drilled for fasteners.
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 prefabricated home building kit meets this definition. The kit forms a complete home that is designed, pre-engingeered and manufactured in the factory, and is imported ready for assembly. The home is permanently installed and functions as housing. Therefore, we find that the home building kits constitute prefabricated buildings.
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.).
Therefore, any additional components imported with the house kit must be identified and classified separately. This includes any furniture, such as chairs, desks, and beds, electronics, and any other non-standard equipment.
The applicable subheading for the Prefabricated Home Building Kit of Engineered Wood Logs (“Pluspuu Kit”) will be 9406.10.0000, HTSUS, which provides for Prefabricated buildings: Of wood. The rate of duty will be 2.6 percent ad valorem.
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