The tariff classification of a log home kit from Canada

NY H89421 April 12, 2002 CLA-2-94:RR:NC:2:230 H89421 CATEGORY: Classification TARIFF NO.: 9406.00.4000 Mr. Ralph Saunders Deringer Logistics Consulting Group 1 Lincoln Blvd., Suite 225 Rouses Point, NY 12979 RE: The tariff classification of a log home kit from Canada Dear Mr. Saunders: In your letter dated March 12, 2002, on behalf of the shipper, Phoenix Wood Products, you requested a tariff classification ruling. The product to be classified is a log home kit to be delivered in two shipments. Descriptive literature with package specifications for a standard model home was submitted. The first shipment will contain the exterior shell package of the home. The second shipment will contain the interior package. The second shipment will be imported about four to five weeks after the first shipment. The exterior shell package includes all the components to make the outside structure of a house. The components consist of the necessary number of profiled eastern white cedar logs to be assembled into walls. The logs are double tongued and grooved on two sides, notched across the ends, predrilled for spikes and numbered for ease of assembly. In addition, the shell package includes an engineered roof truss, plywood sheathing, gable ends cut to the roof pitch, laminated beams, log siding, fascia, soffits, windows and exterior doors. Included also are the components for a deck and porch, namely, joists, cedar decking, posts, railings and decorative pickets. All required nails, spikes, gaskets and caulking are also included. The interior package consists of interior framing materials, such as 2 x 4 and 2 x 6 studs, and tongued and grooved V-joint boards for finishing interior walls. In addition, it includes interior doors, trim and molding, stair components and loft decking and railing. You believe that the exterior shell package and the interior package should be classified together since they are intended to make up one house. However, because the two packages are not imported on the same day, they are not classifiable together. Classification of goods under the Harmonized Tariff Schedule of the United States is governed by the General Rules of Interpretation (GRI’s). GRI 2(a) provides that: Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. The exterior shell package contains prefabricated components necessary to assemble a log home shell. Although not complete, the log home shell has the essential character of a prefabricated building. Based on GRI 2(a), the incomplete unassembled log home shell is classifiable as a prefabricated building. The applicable subheading for the exterior shell package will be 9406.00.4000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for prefabricated buildings, of wood. The general rate of duty will be 2.6 percent ad valorem. The components of the interior package imported in the second shipment consist of various building materials and joinery. The components are not prefabricated and comprise only parts of a building. The interior package does not have the essential character of a prefabricated building. Consequently, each component is classifiable separately under its applicable subheading. The merchandise in question may be subject to antidumping duties and/or countervailing duties. A list of AD/CVD proceedings at the Department of Commerce (DOC) and their product coverage can be obtained from the DOC website at: http://ia.ita.doc.gov, or you may write to them at the U.S. Department of Commerce, International Trade Administration, Office of Antidumping Compliance, 14th Street and Constitution Avenue, N.W. Washington, DC 20230. Written decisions regarding the scope of AD/CVD orders are issued by the Import Administration in the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs. 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 19 CFR 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, either directly, by reference, or by implication, is accurate and complete in every material respect. This ruling is being issued under the assumption that the subject goods, in their condition as imported into the United States, conform to the facts and the description as set forth both in the ruling request and in this ruling. In the event that the facts or merchandise are modified in any way, you should bring this to the attention of Customs and you should resubmit for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by the Customs Service. 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 Paul Garretto at 646-733-3035. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division