HS 940620 Modular building units, of steel
Quick Answer: Modular building units, of steel, imported under HS 940620 enter the UK at 2.00%, the EU at 2.70%, and the US at 2.9% under the Most Favored Nation (MFN) rate. This classification covers prefabricated sections or components made primarily of steel, designed for assembly into complete buildings or structures. These units are typically manufactured off-site and transported for on-site construction, offering efficiency and speed. Importers should be aware that the US also offers duty-free entry from several Free Trade Agreement (FTA) partner countries, a detail readily available through comprehensive tariff databases like CustomTariffs. Understanding these varying rates and preferential treatments is crucial for accurate customs declarations and cost management.
What Are the Import Duty Rates?
🇬🇧 United Kingdom
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 9406200000 | 2.00 % | — | — |
🇪🇺 European Union (TARIC)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 9406200000 | 2.70 % | — | — |
🇺🇸 United States (HTSUS)
| Code | MFN | Preferential | Unit |
|---|---|---|---|
| 9406200000 | 2.9% | Free (17 programs) | ["No.","m<sup>2</sup>"] |
Special rates available under trade agreements including USMCA, KORUS, GSP.
Duty rates sourced from the USITC (US International Trade Commission) Harmonized Tariff Schedule (HTS) (accessed 2/22/2026), EU TARIC – DG TAXUD (Directorate-General for Taxation and Customs Union) (accessed 2/22/2026), and UK Trade Tariff – HMRC (His Majesty's Revenue and Customs) (accessed 2/22/2026).
Data compiled and presented by HSRates.
Which Trade Agreements Reduce Duties for HS 9406.20?
Imports of Modular building units, of steel may qualify for reduced or zero duty rates under free trade agreements and preferential programs. The overview below shows available preferential arrangements by jurisdiction, compiled by HSRates from official tariff and trade agreement data.
United States (HTSUS)
Free for USMCA, KORUS, GSP, and 14 other programs
European Union (TARIC)
Preferential rate data not yet available.
United Kingdom
Preferential rate data not yet available.
Preferential rates require proof of origin and may be subject to quotas or conditions. Always verify eligibility with a licensed customs broker.
Data compiled by HSRates.
Which Preferential Rates Apply to Your Origin Country?
Select an origin country to see if preferential rates apply.
Preferential rates based on available trade agreements. Actual rates may vary.
How to Classify This HS Code?
What products does HS 940620 cover?
This subheading covers modular building units specifically constructed from steel. According to the World Customs Organization's Harmonized System Nomenclature, these are prefabricated units designed to be assembled on-site to form complete buildings. The US International Trade Commission (USITC) Harmonized Tariff Schedule (HTS) and the EU's TARIC database confirm that these units are characterized by their steel construction and their intended use as components for larger structures, such as offices, homes, or industrial facilities.
What falls outside HS 940620?
The following products are excluded from HS 940620: building units not primarily constructed of steel, such as those made from wood, plastic, or concrete, and fully assembled buildings that are not modular units. Also excluded are individual steel components like beams, columns, or panels that are not designed as integrated, prefabricated modular units for immediate assembly into a building structure. For instance, a steel shipping container, while made of steel, is typically classified under a different heading based on its specific function.
What are common classification mistakes for HS 940620?
A common error is misclassifying individual steel structural components, such as beams or panels, under this subheading when they are not presented as prefabricated modular building units. According to General Rule of Interpretation (GRI) 1, classification is determined by the terms of the headings and any relative section or chapter notes. Importers may also incorrectly classify units made from mixed materials where steel is not the predominant component, failing to adhere to the specific material requirement of this subheading.
How should importers classify products under HS 940620?
The correct procedure for classifying products under HS 940620 involves a thorough examination of the product's construction and intended use. Importers and customs brokers must verify that the building units are prefabricated and primarily constructed of steel. Consulting the relevant national tariff schedule, such as the USITC HTS or the UK Trade Tariff, and reviewing explanatory notes or rulings for Heading 9406 is crucial. Confirmation of the modular nature and steel composition is paramount for accurate classification.
How is the duty calculated for products under HS 940620?
A shipment of 10 modular steel office units, each weighing 2,000 kg and declared with a total customs value of $150,000 USD, would attract a US duty of $15,000. This is calculated using the Most Favored Nation (MFN) duty rate of 10% ad valorem, applied to the declared customs value ($150,000 USD × 10% = $15,000 USD). This calculation is based on the duty rates published in the USITC Harmonized Tariff Schedule.
Which trade agreements reduce duties for HS 940620?
Several free trade agreements may reduce the applicable duty rate for HS 940620, including the United States-Mexico-Canada Agreement (USMCA), which can result in a duty rate of Free for qualifying originating goods from Canada or Mexico. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) may also offer preferential rates for originating goods from member countries. Documentation typically required includes a USMCA Certificate of Origin or a self-certified origin statement for USMCA, and specific origin declarations for other agreements.
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FAQ
What are the typical import duty rates for HS code 940620, covering modular building units of steel?
The Most Favored Nation (MFN) duty rate for HS code 940620, 'Modular building units, of steel,' can vary. For instance, under the US tariff schedule, the rate is 2.00% ad valorem. However, preferential rates are available for countries with trade agreements. For example, imports from Australia (AU), South Korea (KR), or Singapore (SG) may be duty-free under specific trade agreements. It is crucial to consult the relevant tariff schedule (e.g., USITC Harmonized Tariff Schedule, EU TARIC, UK Trade Tariff) for the precise rate applicable to your country of origin.
How is the import duty for HS 940620 calculated, and can you provide an example?
The import duty for HS code 940620 is typically calculated on an ad valorem basis, meaning it's a percentage of the declared customs value of the goods. For example, if modular building units of steel are valued at $50,000 USD and the applicable MFN duty rate is 2.00%, the import duty would be calculated as follows: $50,000 (value) × 0.02 (duty rate) = $1,000 USD. Always ensure the customs value is determined according to the WTO Valuation Agreement or relevant national regulations.
What are the key classification criteria to ensure modular building units are correctly classified under HS 940620?
To be classified under HS 940620, modular building units must primarily be designed for assembly on site into complete buildings. Key criteria include: they are manufactured in a factory as distinct, transportable sections or components; these sections are intended to be joined together to form a complete structure; and they are typically made predominantly of steel. The units should retain their essential character as building components even when disassembled for transport. Consult Chapter 94 of the Harmonized System Nomenclature for detailed explanatory notes.
Which common trade agreements offer preferential duty rates for HS code 940620, and what documentation is needed?
Several trade agreements can provide preferential duty rates, often resulting in duty-free entry, for HS code 940620. Examples include agreements with countries like Australia (AU), Chile (CL), South Korea (KR), and Singapore (SG). To claim preferential treatment, importers typically need a 'Certificate of Origin' or a 'Statement of Origin' issued by the exporter or producer, certifying that the goods meet the rules of origin stipulated in the specific trade agreement. This document must be presented to customs authorities at the time of import.
Are there any specific documentation requirements beyond a Certificate of Origin for importing modular building units of steel under HS 940620?
Beyond a Certificate of Origin for preferential duty claims, importers and customs brokers should be prepared to provide other documentation for HS code 940620. This may include a commercial invoice detailing the value and description of the goods, a packing list, a bill of lading or air waybill for transport, and potentially technical specifications or blueprints demonstrating the modular nature and steel construction of the units. Customs authorities may request additional information to verify classification and ensure compliance with national building codes or safety standards.