The tariff classification of house packages from Canada; applicability of subheading 9406.00.40, HTSUS

NY F88035 June 30, 2000 CLA-2-94:RR:NC:2:230 F88035 CATEGORY: Classification TARIFF NO.: various Mr. Rodney Ralston Trans-Border Customs Services, Inc. One Trans-Border Drive P.O. Box 800 Champlain, NY 12919 RE: The tariff classification of house packages from Canada; applicability of subheading 9406.00.40, HTSUS Dear Mr. Ralston: In your letter dated June 6, 2000, on behalf of your client Prestihome International, you requested a tariff classification ruling. The ruling was requested on house packages sold and shipped as complete units. The shipments consist of all the materials necessary to build particular houses. Two trucks are required in order to ship each house. A three page specification sheet listing all the materials was submitted. The specification sheet groups the materials under various headings, such as “floor”, “exterior walls”, “roofing”, etc. For example, the following materials are listed under the heading “exterior walls”: 2”x 6” wall studs, 3/8” plywood, siding in a choice of vinyl, steel, cedar or other, ½” drywall, 6” insulation, aluminum vapor barrier, air warp (tyvek) and 1” air spacing (1”x3” strapping). The quantity of these materials is not stated. We assume that only the exact quantity necessary for constructing a particular house is included in a package. In your opinion, these house units are prefabricated buildings and should be classified in heading 9406, Harmonized Tariff Schedule of the United States (HTSUS). 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. Heading 9406 provides for prefabricated buildings. Note 4 to chapter 94, HTSUS, states: For the purposes of heading 9406, the expression “prefabricated building” 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. 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 assembled or unassembled houses built at the factory. A review of the specification sheet of the house packages in question shows essentially a collection of materials necessary for building a house at the site. To construct the principal part of the house, the package contains components such as 2”x10” beams, 2”x4” and 2”x6” studs, 3/8”, ½” and ¾” plywood, ½” drywall, 2”x2” bracing, 1”x3” strapping and 6” insulation. These are in the form of materials, not prefabricated components. Consequently, the Prestihomes house packages as described above are not classifiable as prefabricated buildings in subheading 9406.40.0000, HTSUS. Each of the materials in the house package is classifable separately in its applicable subheading. 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 212-637-7009. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division