The tariff classification of custom built homes from Canada

NY 857348 November 9, 1990 CLA-2-94:S:N:N1:230 857348 CATEGORY: Classification TARIFF NO.: 9406.00.4000 Mr. R. W. Yager Norman G. Jensen, Inc. Box 1450 Blaine, WA 98230 RE: The tariff classification of custom built homes from Canada Dear Mr. Yager: In your letter dated October 16, 1990, you requested a tariff classification ruling. The ruling was requested on behalf of Pan-Adobe International, Ltd. of Richmond, British Columbia. Pan-Adobe International, Ltd. manufactures and exports custom built homes consisting of packages of prefabricated components which will be assembled at the destination site. A standard package consists of 85 percent of ready to assemble components and 15 percent of components which require trimming and cutting. Logs and glulaminated beams which make up 60 percent of a standard package are notched and trimmed to exact length. Roofboards are supplied in exact lengths and all windows and doors are prehung. The prefabricated buildings are supplied complete. In some cases, however, customers may exclude certain components which will be obtained locally to save on the cost of shipping. Commonly, a building may be supplied complete except for roof insulation such as fiberglass sheets. In another case, a building may exclude the outer asphalt shingles. In some cases, floor joists and plywood flooring may be obtained locally in order to have the floor system prepared ahead of the arrival of the home package. These incomplete packages have the essential character of prefabricated buildings. The applicable subheading for complete wood homes excluding either roof insulation, asphalt shingles, floor joists or plywood flooring, or a combination of these parts will be 9406.00.4000, Harmonized Tariff Schedule of the United States (HTS), which provides for prefabricated buildings, of wood. The rate of duty will be 5.1 percent ad valorem. Goods classifiable under subheading 9406.00.4000, HTS, which have originated in the territory of Canada, will be entitled to a 4 percent rate of duty under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations. This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, Jean F. Maguire Area Director New York Seaport