CLA-2-94:OT:RR:NC:5:130
Ms. Caralee Lloy
Lloyoll Custom Building Limited
PO BOX 167
Hunts Point, B0T 1G0
CANADA
RE: The tariff classification of a manufactured home from Canada
Dear Ms. Lloy:
In your letter, dated September 17, 2024, you requested a binding tariff classification ruling. The request was returned to you for additional information, which was received by this office on October 3, 2024. The ruling was requested on prefabricated housing structure. Product information was submitted for our review.
The product under consideration is a freestanding housing unit measuring approximately 46 feet long by 14 feet wide. The frame, sides, and interior walls and floors are constructed of wood. The unit has one bedroom, a living/dining room, a kitchen, and a bathroom. The manufactured home is fully assembled, finished, and ready for installation at a selected location. The unit is finished with cabinets, countertops, interior and exterior doors, built-in lighting, a refrigerator, dishwasher, washer/dryer, range, HVAC systems, sinks, a toilet, a shower, siding, flooring, and more. The unit is imported complete and is not designed for assembly with other housing units. The manufactured home is substantial and is built to resist the elements.
Note 4 to Chapter 94, Harmonized Tariff Schedule of the United States (HTSUS), defines the term “prefabricated building”:
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.
The instant unit is finished in the factory and functions as housing accommodation. It meets the term “prefabricated building”.
The applicable subheading for the prefabricated housing structure will be 9406.10.0000, Harmonized Tariff Schedule of the United States, which provides for Prefabricated buildings: Of wood. The rate of duty will be 2.6 percent ad valorem.
Please note that the Explanatory Notes to heading 9406 provide that only built-in furniture and components normally supplied with prefabricated buildings are to be classified with the building:
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.).
The appliances imported with the prefabricated housing structure are not built-in equipment normally supplied with a building. The refrigerator/freezer, washer/dryer, dishwasher, oven, and any other appliances must be classified separately from the unit. Additionally, any furniture not built into the unit must be classified separately. Electrical wiring, HVAC systems, sanitary equipment (baths, sinks, toilets), and cabinets are examples of goods that are classified with the prefabricated building.
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.
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 Title 19, Code of Federal Regulations (CFR), Section 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, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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