CLA-2 CO:R:C:G 083442 AJS
TARIFF NO: 9406.00.80; 9817.00.50
Ms. Valerie L. Matthews
C.J. Tower & Sons
Customhouse Brokers
128 Dearborn Street
Buffalo, N.Y. 14207
RE: Prefabricated Quonset steel buildings from Canada
Dear Ms. Matthews:
Your request of November 1, 1988, for a review of N.Y.
Ruling 827668 has been referred to this office for a reply.
FACTS:
The articles in question are prefabricated Quonset steel
buildings imported from Canada. They are made of galvanized
steel and produced in a wide variety of diameters, heights and
storage capacities. They are constructed by pouring a concrete
foundation and then assembling the building on top of this
flooring. These buildings are claimed to be used for the
storage of grain, hay, livestock and other agricultural
products. However, the enclosed literature from pioneer shows
the buildings also are used for commercial and industrial
purposes.
ISSUE:
Whether prefabricated steel buildings are properly classi-
fiable as other prefabricated buildings under subheading
9406.00.80, HTSUSA; or as steel structures under subheading
7308.90.90, HTSUSA.
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA) is governed by the General Rules
of Interpretation (GRI's). GRI 1 provides that classification is
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determined first in accordance with the terms of the headings of
the tariff and any relative section or chapter notes.
Subheading 9406.00.80, HTSUSA, provides for "prefab-
ricated buildings". Chapter Note 4 states, "prefabricated
buildings" are buildings which are finished in the factory or put
up as elements, entered together, to be assembled on site, such
as housing or worksite accommodations, offices, schools, shops,
sheds, garages or similar buildings. These buildings meet this
description. They are factory finished merchandise, assembled on
site, and can be used for farm, commercial and industrial
purposes. In fact, the enclosed literature states that these
buildings are "available to suit any conceivable purpose."
Therefore, these prefabricated steel buildings would be class-
ifiable as other prefabricated buildings of metal under
subheading 9406.00.80, HTSUSA.
The merchandise in question cannot be classified as a
structure of steel under heading 7308, HTSUSA, because prefab-
ricated buildings of heading 9406 are specifically excluded from
this provision by the terms of heading 7308.
If the prefabricated buildings are to be used for the
storage of grain, hay, or for livestock and other agricultural
uses they are entitled to duty-free treatment under 9817.00.50,
HTSUSA as "machinery, equipment, and implements to be used for
agricultural or horticultural purposes." Buildings which were
previously classified under item 870.40, TSUS, will continue to
be entitled to duty free treatment under subheading 9817.00.50,
HTSUSA.
HOLDING:
The prefabricated Quonset steel buildings imported from
Canada are classifiable in subheading 9406.00.80, HTSUSA.
However, if the buildings are to be primarily used for agricult-
ural purposes they are classifiable in subheading 9817.00.50,
HTSUSA. These buildings would be free of duty but subject to
the actual use certification prescribed in section 10.138 of the
Customs Regulations.
Sincerely,
John Durant, Director
Commercial Ruling Division