Tariff Classification Advance Ruling
Teranap 431 bituminous geomembrane

Applicant

Ms. Leanne Slatcher
Titan Environmental Containment Ltd.
777 Quest Blvd.
Ile des Chenes, MB
R0A 0T0

Date of issuance of ruling:

This is in response to a request submitted on your behalf by Kuehne & Nagel Ltd. for an advance ruling on the tariff classification of Teranap 431 bituminous geomembrane. This product is manufactured by, and exported from, Icopal S.A.S., Antony, France.

TRS Number: 274061
Classification Number: 6807.10.00.90
Effective Date:

Product Description

The good is an elastomeric modified bitumen geomembrane ground waterproofing sheet used by the construction industry. The good is applied to the ground to channel the flow and storage of liquids. It is designed for use in the construction and repair of geotechnical waterproofing applications such as a liner for concrete and earthen canals, settling basins, embankment stabilization, dams, mine waste containment, waste water storage, reservoirs, and ponds. The good is imported in a roll 2 meters wide by 20 meters long and averages 4 mm thick and weighs 5.15 kilograms per square meter with a shipping weight per roll of 206 kilograms.

The good is composed of several materials in five layers: layer one is a silica parting agent which functions to provide easy unrolling of the good; layer two is a styrene-butadiene-styrene (SBS) modified bitumen which provides the waterproofing aspect of the good; layer three is a nonwoven polyester textile that serves as reinforcement; layer four is another SBS modified bitumen layer providing additional waterproofing; and layer five is a polyester film which serves to provide reinforcement from punctures. A kraft paper is present to provide easy separation at time of unrolling but is not a functional composite layer of the good.

Analysis and Justification

Consideration was given to heading 56.03, Nonwovens, whether or not impregnated, coated, covered or laminated, as requested by the applicant. However, Note 3(b) to Chapter 56 states that this heading does not cover nonwovens either completely embedded in rubber or entirely coated or covered on both sides with rubber and directs classification to Chapter 40.

Heading 40.05 provides for Compounded rubber, unvulcanized, in primary forms or in plates, sheets or strip. The good contains, in part, styrene-butadiene-styrene (SBS) which meets the definition of synthetic rubber as per Note 4 to Chapter 40, and which is compounded with other substances, in this case, bitumen.

Heading 68.07 covers Articles of asphalt or of similar material (for example, petroleum bitumen or coal tar pitch. The good contains, in part, two layers of SBS-modified bitumen composed of 7% SBS and 93% bitumen.

GIR 2(a) is not applicable to the good as it is imported in a complete or finished form. Also, GIR 2(b) does not apply as the good consists of more than one material and is prima facie classifiable under two or more heading.

Therefore, the classification shall be determined according to the principles of GIR 3. As each of these headings refers to part only of the materials contained in the composite good, these headings are regarded as equally specific and GIR 3(a) is not applicable.

GIR 3(b) directs that composite goods consisting of different materials, which cannot be classified by reference to Rule 3 (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

The primary purpose of this membrane is the waterproofing aspect provided by the bitumen component of the good. The product information provided establishes that the SBS serves simply to enhance the function of the bitumen by allowing the good to remain flexible over time, to relax and quickly conform to substrate contours, and to withstand settlement changes in the subgrade. The nonwoven polyester and the polyester film merely serve for reinforcement and puncture resistance purposes. Therefore, the essential character, by the role of the constituent material in relation to the use of the goods, is the bitumen material of heading 68.07.

Decision

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.

GIR3(b) directs that “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.”

The Teranap 431 bituminous geomembrane is correctly classified under tariff classification 6807.10.00.90 in accordance with GIR 3(b) and 6.

Legislative/Administrative References

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.

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 accordance with the procedures described in Memorandum D11-11-3. The ruling may be published on the CBSA website within 30 days.

CBSA Contact

Mark Grant
Manager, Tariff Policy Unit 'B'
Trade Policy Division
Headquarters, Ottawa

File Number

C-2015-007488

Date modified: