CLA-2-94:OT:RR:NC:3:130
Mr. Steve Clyde
Axxess International Inc.
3401 Commerce Drive
Suite A-1
Port Huron, MI 48060
RE: The tariff classification of an unassembled tiny house from Canada
Dear Mr. Clyde:
In your letter, dated August 29, 2018, you requested a classification ruling on behalf of your client, ILO Tiny Houses, Inc. The ruling was requested for an unassembled “tiny house”. Product information and photos were submitted for our review.
The housing unit, identified by the style name “Billy”, measures approximately 12’ x 34’, or may be larger depending upon consumer choice. The unit will be built to specification with a kitchen, bath, and one or more bedrooms. According to your submission, all parts and materials will be imported together, as a kit, ready for assembly. The home will be assembled and installed in a fixed location. It will be constructed of multiple materials, with roof, walls, and floors being constructed of wood studs, plywood, and oriented strand board. The walls and roof are also manufactured with wood furring, or strips of wood attached to the wall or roof as to provide air space between the wall and plasterwork. The illustrations of the Billy unit also appear to show exterior walls and decking constructed of wood. You indicate that many options may be included in the home, such as appliances and solar panels, amongst other items.
General Rule of Interpretation 2(a) governs the classification of unassembled items:
2. (a) 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 instant house is an unassembled prefabricated building. Note 4 to Chapter 94, Harmonized Tariff Schedule of the United States (HTSUS) defines “prefabricated buildings” as “buildings which are finished in the factory or put up as elements, entered together, to be assembled on site, such as housing or worksite accommodation, offices, schools, shops, sheds, garages or similar buildings.” The instant house clearly meets the definition, as it is a complete building that functions as a housing unit, is finished in the factory but unassembled, and is entered together to be assembled on site.
Because the structural components of the Billy unit consist of wood – plywood, lumber, OSB, etc. – the unit meets the Explanatory Note to subheading 9406.10, HTSUS, for prefabricated buildings “of wood”:
For the purposes of classification in this subheading, the expression “of wood” refers to prefabricated buildings with wooden structure, exterior walls, floor(if floor present), and other characteristic constructive elements consisting predominantly of wood.
The applicable subheading for the unassembled Billy housing unit will be 9406.10.0000, HTSUS, which provides for Prefabricated buildings: Of wood. The rate of duty will be 2.6 percent ad valorem.
The built-in bathroom and kitchen accommodations do not affect classification. However, please note, the Explanatory Notes to Heading 9406 specifically exclude certain furnishings:
The buildings of this heading may or may not be equipped. However, only built in equipment normally supplied is to be classified with the buildings. This includes electrical fittings (wiring, sockets, switches, circuit breakers, bells, etc.), heating and air conditioning equipment (boilers, radiators, air conditioners, etc.), sanitary equipment (baths, showers, water heaters, etc.), kitchen equipment (sinks, hoods, cookers, etc.) and items of furniture which are built in or designed to be built in (cupboards, etc.).
Material for the assembly or finishing of prefabricated buildings (e.g., nails, glues, plaster, mortar, electric wire and cables, tubes and pipes, paints, wallpaper, carpeting) is to be classified with the buildings, provided it is presented therewith in appropriate quantities.
Therefore, if at any time, furniture, solar panels, and appliances are imported with the units, they are to be classified separately and do not constitute parts of the prefabricated building. Additionally, if building, assembly, and finishing materials are imported in larger quantities than required to manufacture the house, these materials are not classifiable with the building.
In your submission, you identify the country of origin of the tiny house as Canada. However, we cannot confirm the accuracy of that claim. Please note that procurement of components does not determine country of origin. For example, plywood or appliances manufactured in China but procured in Canada are Chinese in origin – not Canadian -- in accordance with Title 19, United States Code, Section 1304. Should you seek a determination of country of origin, you must submit another ruling request.
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 connection with the ruling request and incorporated therein, either directly, by reference, or by implication, is accurate and complete in every material respect. 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 Customs.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current.
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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division