CLA-2-94:OT:RR:NC:N5:130
Mr. Lawrence M. Friedman
Barnes, Richardson & Colburn
303 East Wacker Drive, Suite 305
Chicago, IL 60601
RE: The tariff classification and country of origin of a prefabricated building structure
Dear Mr. Friedman:
In your letter, dated April 14, 2026, you requested a binding tariff classification and country of origin ruling
on behalf of your client, AJC Modular. Product information and pictures were submitted for our review.
The product under consideration is a prefabricated building structure for residential use. The structural
framework (base and structural wall and roof framing) is constructed of steel. The unit is outfitted with
plumbing and electrical, and then, flooring, external walls, and internal walls are added. Finally, the unit is
finished with kitchen and bathroom cabinets and fixtures, and windows and doors. The unit is fully
self-contained and not designed to be assembled with additional units.
Note 4 to Chapter 94, Harmonized Tariff Schedule of the United States (HTSUS) defines “prefabricated
buildings”:
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 unit is a housing unit that is finished in the factory and entered as a self-contained structure to be
installed on a foundation and connected to electric and plumbing services. The unit meets the definition of a
prefabricated building.
You suggest that the unit is classifiable under 9406.20.0000, HTSUS, which provides for modular
prefabricated building units of steel. We disagree. Note 4 to Chapter 94, HTSUS, provides that
“Prefabricated buildings include “modular building units” of steel, normally presented in the size and shape
of a standard shipping container, but substantially or completely pre-fitted internally. Such modular building
units are normally designed to be assembled together to form permanent buildings.” The instant building is
not presented in the size and shape of a standard shipping container and is not designed to be assembled
together with other units into a larger building structure. Therefore, it is merely a prefabricated building of
metal.
The applicable subheading for the prefabricated building structure will be 9406.90.0130, HTSUS, which
provides for Prefabricated buildings: Other: Of metal: Other. The general rate of duty will be 2.9 percent ad
valorem.
Please note that the Explanatory Notes to the Harmonized System for heading 9406 provide that:
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.).
If the unit is imported with furniture or appliances, those items must be classified separately.
Pursuant to Part 134, Customs Regulations (19 CFR 134) implements the country of origin marking
requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)),
defines “country of origin” as: “The country of manufacture, production or growth of any article of foreign
origin entering the United States. Further work or material added to an article in another country must effect
a substantial transformation in order to render such other country the ‘country of origin’ within the meaning
of this part.” A substantial transformation occurs when an article emerges from a process with a new name,
character or use different from that possessed by the article prior to processing. A substantial transformation
will not result from a minor manufacturing or combining process that leaves the identity of the article intact.
See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Association
v. United States, 628 F. Supp. 978 (Ct. Int’l Trade 1986).
All manufacturing of the prefabricated building takes place in China. Therefore, the substantial
transformation of materials into a prefabricated building takes place in China. The country of origin of the
prefabricated building is China.
This ruling does not address the applicability of any additional duties, taxes, fees, exactions and/or other
charges, which may apply to the goods discussed herein. This includes, but is not limited to, tariffs and other
duties as provided for in Subchapter III to Chapter 99, HTSUS. Thus, for example, in addition to the
classification stated above, the merchandise covered by this ruling may also need to be reported with either
the Chapter 99 provision under which an additional tariff applies or one of the Chapter 99 provisions
covering exceptions to such tariffs.
For further information to assist with the importation process, please refer to the frequently updated Cargo
Systems Messaging Service (CSMS) messages at
https://www.cbp.gov/trade/automated/cargo-systems-messaging-service and the Trade Remedies page at
https://www.cbp.gov/trade/programs-administration/trade-remedies.
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 and Border Protection
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, please contact
National Import Specialist Laurel Duvall at [email protected].
Sincerely,
(for)
James P. Forkan
Director
National Commodity Specialist Division