Mystical Distributing Company
Unit 1- 2610 Progressive Way
Date of issuance of ruling:
This is in response to your request for a tariff classification advance ruling, on behalf of your client Mystical Distributing Company, 1-2610 Progressive Way, Abbotsford, B.C. The products are PVC banners, exported to Canada from CSIC (HK) Company, Hong Kong, China.
As per the sample received the product is a 2 foot by 10 foot PVC (polyvinylchloride) banner. This banner is composed of a white non-cellular PVC sheet with no textile material attached or embedded. Screen printed on one side is the word "FIREWORKS" in red, resulting in a red on white background. It also has on the outer edges clear plastic grommets.The printed side has a gloss finish, whereas the back side of the banner is in a matte finish.
Analysis and Justification
Legal Note 10 to Chapter 39 deals with headings 39.20 and 39.21. It states, in part, that "plates, sheets, film, foil and strip" (other than those of Chapter 54), includes those items "whether or not printed or otherwise surface worked, uncut or cut into rectangles, but not further worked". The goods at issue are further worked into a banner with grommets and therefore, would not be classified in Chapter 39.
Legal Note 2 to Section VII states that plastics printed with characters which are not merely incidental to the primary use of the goods, fall in Chapter 49. The characters "FIREWORKS" on the banner are not merely incidental, but rather critical in the rationale of the banner. As such, the banner would be classified in Chapter 49.
Section 10 of the Customs Tariff directs that classification of imported goods shall be determined in accordance with the General Rules for the Interpretation of the Harmonized System. Section 11 of the Customs Tariff states that in interpreting the headings and subheadings, regard shall be had to the World Customs Organization's (WCO) Explanatory Notes to the Harmonized Commodity Description and Coding System.
General Interpretative Rule 1 (GIR 1) directs that titles of Sections, Chapters and sub-Chapters are provided for ease of reference only. For legal purposes, classification shall be determined according to the terms of the heading and any relative Section and Chapter Notes. Similarly, General Interpretative Rule 6 (GIR 6) directs that classification shall be determined according to the terms of those subheadings and any related Subheading Notes.
Based on the above analysis, and in accordance with GIR 1 and 6, the PVC banner is classified under 4911.99.00.90 as other printed matter.
This ruling has been issued under paragraph 43.1(1)(c) of the Customs Act and will be honoured by the CBSA for future importations of the goods specified, provided the material facts and circumstances remain as originally presented; all conditions in the ruling have been met; the ruling has not been modified, revoked, revised, or cancelled; and the Customs Tariff legislation has not changed.
Should there be a change in the material facts or circumstances pertaining to the goods, you must notify the CBSA as soon as possible. You may request that the advance ruling be modified or revoked as of the date of the change.
Importers should quote the advance ruling number at the time of importation in either the description field of the B3 entry document or on the Canada Customs Invoice. Exporters or producers should quote the advance ruling number on the Certificate of Origin or commercial invoice accompanying the goods.
Should you disagree with this advance ruling, you may file a dispute notice under subsection 60(2) of the Customs Act within 90 days of the date of issuance. Please see the procedures outlined in Appendix C of the CBSA's Memorandum D11-11-3, Advance Rulings for Tariff Classification.
This advance ruling is considered 'reason to believe' for the purposes of section 32.2 of the Customs Act and the CBSA's Administrative Monetary Penalty System, described in Memorandum D22-1-1.
All Memoranda referenced in this letter may be accessed on the CBSA website.
Consent to the Public Release of the Advance Ruling
As per your consent statement, we will release this advance ruling to the public, in both official languages, in accordance with the procedures described in Memorandum D11-11-3. The ruling will be published on the CBSA website in 30 days.
Manager, Tariff Policy Unit 'B'
Trade Policy Division
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