Mr. Mohamed Al Lawati
88 Grandview Way, Suite 1205
Toronto, ON M2N 6V6
Date of issuance of ruling: December 1, 2015
This is in response to your request for an advance ruling on the tariff classification of a 100% beige cotton canvas messenger bag. This product is manufactured by WEAN Multipurpose Co-operative Ltd., GPO Box No. 9195, Chakupat, Patan Dhoka, Lalitpur, Kathmandu, Nepal.
|Effective Date:||December 1, 2015|
This product is a 100% beige cotton canvas bag designed to carry books and stationery for work, school or university. It has a zipper along the length of the back at the top, a flap which folds over the front with two Velcro tabs for closure and a black shoulder strap. There is a zipper in the front and a pouch to carry a phone and other articles such as markers or pens.
Analysis and Justification
You have requested consideration of tariff classification 4202.19.00.00 and because the goods originate in Nepal, the benefit of the Least Developed Country Tariff (LDCT) rate of customs duty.
This product meets the terms of the first part of heading 42.02 which provides for trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers which may be of any material. Guidance is provided by the Explanatory Notes to the heading, specifically paragraph 1 which states in part:
"These containers may be rigid or with a rigid foundation, or soft and without foundation. Subject to Notes 2 and 3 to this Chapter, the articles covered by the first part of the heading may be of any material."
With respect to the duty rate of these messenger bags, goods that originate in a country set out in the List of Countries (found in the Customs Tariff) as a beneficiary of the Least Developed Country Tariff (LDCT) are entitled to the LDCT rates of customs duty. Nepal is listed as a beneficiary country of the LDCT, therefore, the subject goods may qualify for the benefits of the LDCT, provided all requirements of the General Preferential Tariff and Least Developed Country Tariff Rules of Origin Regulations are met. Please see Memorandum D11-4-4 for further information: www.cbsa-asfc.gc.ca/publications/dm-md/d11/d11-4-4-eng.html.
If you require a ruling on the applicability of LDCT, please submit a request for a National Customs Ruling (NCR). Information and instructions concerning requests for an origin NCR for non-free trade agreement preferential tariff treatment are outlined in Appendix A of Memorandum D11-11-1 National Customs Rulings.
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.
In accordance with General Interpretative Rule 1, the 100% beige cotton canvas messenger bag is classified 4202.12.10.00.
This ruling has been issued under paragraph 43.1(1)(c) of the Customs Act and will be honoured by the Canada Border Services Agency (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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