CLA-2-94:OT:RR:NC:1:130
Mr. Eero V. Kilpi
Kustavi Productions
130 Dearborn Ave.
Rye, NY 10580
RE: The tariff classification of a prefabricated sauna
Dear Mr. Kilpi:
In your letter, dated May 16, 2019, you requested a binding ruling on behalf of your client, Ripavi, Ltd. The ruling was requested on prefabricated saunas with varying configurations. Product information and photos were submitted for our review.
The product being considered is a prefabricated sauna that is shipped to the United States in assembled condition. Each sauna unit is manufactured from cross laminated timber. It is a freestanding structure which withstands weather elements, and is designed to be occupied by one or more individuals. Each sauna unit is an enclosed, rigid structure with a door and tempered glass windows. The unit is built onto stable, adjustable, metal legs. Each leg has a load capacity of 1500kg. The sauna incorporates a “machine-sealed metalsheet roof” that has integrated lifting hooks for lifting and placing the unit (presumably by crane). The saunas are imported in various sizes, one weighing approximately 1,746kg, and a second weighing 2,345kg. The sauna variations include electric or wood-burning heaters, and an incorporated shower powered by battery or solar power.
Note 4 to Chapter 94, Harmonized Tariff Schedule of the United States (HTSUS), states that “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 or worksite accommodation, offices, schools, shops, sheds, garages or similar buildings”. We find that the sauna unit meets this definition. It is a wood structure that is clearly manufactured to function as an interior space and as a permanent building. It is constructed in dimensions easily sufficient for human entry, and is weather-resistant. Therefore, we find that the sauna unit is classifiable as a prefabricated building of wood.
The applicable subheading for the sauna unit is 9406.10.0000, HTSUS, which provides for Prefabricated buildings: Of wood. The rate of duty will be 2.6% ad valorem.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the General Rules of Interpretation (GRIs). While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989).
The ENs to heading 9406, HTSUS, state that
(t)he 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.).
While you do not identify any additional components beyond the heater and shower, please note that any additional equipment or furniture not meeting the above terms must be identified and classified separately.
In your letter, you also request a ruling on the country of origin and marking of the sauna units. You have not provided sufficient information for us to make these determinations. In order to determine origin, an explanation of all manufacturing operations and the countries in which each operation takes place must be submitted. This includes the manufacturing of each incorporated component, such as the cross-laminated wood, metal components, fasteners, glass panels, solar panels, heaters, showers, and the like. Should you wish to submit another ruling request for origin, please provide this information for consideration.
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