The tariff classification of house packages from Canada; applicability of heading 9406, HTSUS.

NY J84856 June 19, 2003 CLA-2-94:RR:NC:SP:230 J84856 CATEGORY: Classification TARIFF NO.: Various Mr. Dan R. Hawkins Island Cedar Source P.O. Box 441 Pahoa, HI 96778 RE: The tariff classification of house packages from Canada; applicability of heading 9406, HTSUS. Dear Mr. Hawkins: In your letter dated May 5, 2003, you requested a tariff classification ruling. The ruling was requested on a single-family home package (unassembled residential house kit) to be imported for delivery to a specific customer in the United States. You state that the package will consist mainly of cedar framing lumber, vinyl windows, and sliding glass patio doors. Following importation, a general contractor will supply the labor and additional materials necessary to build a complete home from the kit at the customer’s site. Blueprints and a list of the items in the imported home package were submitted with your inquiry. Based on our review of the list, it appears that the only prefabricated components in the package are windows, doors and trusses. (It is assumed that the latter are pre-assembled, although this is not clear because the parts list shows individual lumber components for them.) The bulk of the package consists of dimension lumber, i.e., loose wooden boards of various sizes (2x4, 2x6, 2x12, etc.), pre-stained interior wall and ceiling paneling, and pre-stained exterior wood siding. Nails and other fasteners are also included. It appears that items such as foundation materials, plywood sheathing, insulation and roof shingles are not included. With regard to tariff classification, your submission mentions heading 9406, Harmonized Tariff Schedule of the United States (HTSUS), which provides for prefabricated buildings. Classification of goods under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that classification is determined first according to the terms of the headings of the tariff schedule and any relative Section or Chapter notes. Note 4 to chapter 94, HTSUS, states: 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 and worksite accommodation, offices, schools, shops, sheds, garages or similar buildings. (Emphasis added.) The expression “finished in the factory or put up as elements” refers to structures built in factories. In order to be classified as a prefabricated building of heading 9406, a house package must consist essentially of an assembled or unassembled house built at the factory. As discussed above, despite the presence of trusses, doors and windows, the subject package is essentially a collection of materials necessary for building a house at the site. The pieces of lumber, siding and paneling are in the form of materials, not prefabricated components. In their imported condition, the materials in the package do not possess or exhibit the essential character of the finished structure. Consequently, the house package as described above is not classifiable as a prefabricated building in heading 9406, HTSUS. Each of the materials and components in the house package is classifiable separately in its applicable tariff subheading. Some of 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 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