Danson Décor Inc.
3425 Douglas B Floreani
St-Laurent, QC H4S 1Y6
Date of issuance of ruling:
This is in response to your request for an advance ruling on the tariff classification of Easter Grass, Part #A01265. This product is exported from Ocean Smart (Asia) Limited, Hong Kong.
As per the sample received, the “Easter Grass”, Part #A01265 consists of strip, of synthetic textile material, specifically of polypropylene. The various strips are of different lengths and all of widths less than 5 mm (approximately 2 to 4 mm). The strips are flat, pink in colour, and packaged in a clear sealed plastic bag printed with product information. A product tag is attached to the bag with a string.
Analysis and Justification
The classification of "strip or the like" is based on width. A textile strip, based on Legal Note 1 (g) to Section XI (Textile and Textile Articles) is strip of an apparent width of 5 mm or less. The Explanatory Notes to heading 54.04 state; "The strips of this heading are flat, of a width not exceeding 5 mm, either produced as such by extrusion or cut from wider strips or from sheets". Legal Note 1(g) however excludes from Section XI, strip of an apparent width exceeding 5 mm. Therefore, this strip is either considered plastic strip (of Chapter 39), or plaited strip (plaits or fabrics or other basketware or wickerwork of strip of Chapter 46).
Textile strips are provided for in heading 54.04 (when of synthetic textile materials), or in heading 54.05 (when of artificial textile materials). The Explanatory Notes to heading 54.04, which apply mutatis mutandis to heading 54.05, state; "All these products are generally in long lengths, but remain classified here even if cut into short lengths or whether or not put up for retail sale".
With regard to festive articles of heading 95.05, "Festive, carnival or other entertainment articles, including conjuring tricks and novelty jokes", the term decoration relates to an element which is decorative in nature or which provides an entertainment value during a festive occasion. The term decoration also relates to an article that decorates or serves as an ornament. The textile material at issue in itself is not an ornamental article, nor a decorative article. Although the strips may be used after importation as a filler or cushion to a delicate packing article or articles, goods are to be classified at the time of importation. At the time of importation the strips are a textile material.
In Canadian International Trade Tribunal appeal AP-2009-066, Danson Décor Inc., for decorative bows, the Tribunal examined whether the goods in issue are "articles". On this issue, the Tribunal notes that, while the term "article" is not defined for the purposes of Chapter 95, it has previously accepted that this term generally means; "…any finished or semi-finished product, which is not considered to be a material". The textile strip at issue is not an article but a material specifically mentioned in the terms of heading 54.04 "…strip and the like (for example, artificial straw) of synthetic textile materials of an apparent width not exceeding 5 mm".
As goods are classified at time of importation, the "Plastic Easter Grass" is classified as a material according to its composition. Its use after importation, for example to make different decoration products, is not relevant for the purposes of tariff classification.
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.
The textile strips are classified under 5404.90.00.00 by GIR 1 and 6.
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
- Date modified: