CLA-2-94:OT:RR:NC:5:130
Ms. Jan Maduro
Maduro & Associates
PO Box 9022947
San Juan, PR 00902
RE: The tariff classification of a prefabricated home from Hungary
Dear Ms. Maduro:
In your letter, dated March 24, 2025, you requested a binding tariff classification ruling on behalf of your
client, Ubrankovics USA, LLC. The request was returned to you for additional information, which was
received by this office on June 20, 2025. The ruling was requested on prefabricated housing structures.
Product information was submitted for our review.
The product under consideration is freestanding, unassembled, prefabricated wood buildings. Product
information indicates many uses, but the submission focuses on housing structures. Your submission
indicates that the buildings are constructed primarily of timber and engineered structural timber products,
such as cross-laminated timber and glulam. The framing of the building is predominantly wood. The
buildings are fully constructed before importation and shipped in parts in one to three containers. Once in the
US, the homes are fully assembled on site from the imported components. The homes are not imported with
fixtures, appliances, or furniture. Architectural renderings show houses constructed with multiple rooms
including bedrooms, bathrooms, living spaces, kitchens, and garages. The buildings are of sturdy
construction and are designed to withstand the elements.
Note 4 to Chapter 94, Harmonized Tariff Schedule of the United States (HTSUS), defines the term
“prefabricated building”:
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 instant units are finished in the factory and function as housing accommodation. They meet the term
“prefabricated building”.
The applicable subheading for the prefabricated housing structures will be 9406.10.0000, Harmonized Tariff
Schedule of the United States, which provides for Prefabricated buildings: Of wood. The rate of duty will be
2.6 percent ad valorem.
In your letter, you ask if Customs and Border Protection requires separate classification for the materials and
components shipped with the prefabricated houses, such as fixtures and tools. Please note that the
Explanatory Notes to heading 9406 provide that only built-in furniture and components normally supplied
with prefabricated buildings are to be classified with the building:
The buildings of this heading may or may not be equipped. However, only builtin equipment
normally supplied is to be classified with the buildings. This includes electrical fittings (wiring,
sockets, switches, circuitbreakers, 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.).
Tools, appliances, and furniture imported with the prefabricated housing structure are not built-in equipment
normally supplied with a building, and therefore must be classified separately. Electrical wiring, HVAC
systems, sanitary equipment (baths, sinks, toilets), and cabinets are examples of goods that are classified with
the prefabricated building.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries,
including Hungary, will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry,
you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition
to subheading 9406.10.0000, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 the World Wide Web at https://hts.usitc.gov/current.
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 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,
(for)
Steven A. Mack
Director
National Commodity Specialist Division