Tariff Items 9967.00.00 and 9968.00.00
Memorandum D10-15-18

Ottawa, March 1, 2017

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In Brief

  • The editing revisions made in this memorandum correct a typographical error in paragraph 7(a) and do not affect or change any of the existing policies or procedures.

This memorandum outlines and explains the Canada Border Services Agency's (CBSA's) interpretation of tariff items 9967.00.00 and 9968.00.00, which relate to commodities in the aviation industry.

Legislation

Tariff item 9967.00.00 reads:

Goods, other than seat covers of textile fabric, for use in aircraft, ground flying trainers, aircraft engines or airborne aircraft equipment, and parts thereof.

Tariff item 9968.00.00 reads:

Goods of Section XV or XVI or of Chapter 15, 25, 28, 32, 34, 37, 38, 39, 40, 48, 68, 69, 90, or 94, for the manufacture, repair, maintenance, rebuilding, modification or conversion of aircraft, ground flying trainers or aircraft engines, and parts thereof.

Section 2 of the Customs Tariffreads, in part:

"For use in", wherever it appears in a tariff item, in respect of goods classified in the tariff item, means that the goods must be wrought or incorporated into, or attached to, other goods referred to in that tariff item.

Guidelines and General Information

Definitions

1.   The following definitions are applicable to the interpretation of tariff items 9967.00.00 and 9968.00.00.

Articles
Products that are semi-manufactured or manufactured from any material and have a definite shape. They may be in the rough without any designated use or they may be in semi-finished or completely finished form which would render them suitable for a specific purpose.
Civil Aircraft
The term "civil aircraft" includes all aircraft except military aircraft. The term also includes balloons (free or captive), dirigibles, gliders, hang gliders, other non-powered aircraft, helicopters, airplanes, and other aircraft.
Goods
Products that may either be a material or an article. Thus, the term goods encompass both terms, i.e., materials or articles.
Materials
Products that may be natural or synthetic substances and mixtures thereof. They may be manufactured to a degree. They may be without specific shape and must not be cut to size to render them suitable for a specific purpose. Examples are moulding pellets, pigments, paint and paper, metal, plastic materials in sheet, tube or rod form.
Repair
The adjustment or the replacement of parts to aircraft, aircraft engines, or parts of all the foregoing to restore the article to its original operating conditions. Servicing functions carried out to the aircraft while stationed for the embarking and disembarking of passengers, such as, refueling, sanitary servicing, water servicing, replenishing food and beverage supplies are not included within the meaning of repair and maintenance for the purpose of tariff item 9968.00.00.

2.   The term "for use in" is defined in Section 2 of the Customs Tariff, and reproduced above. The words "wrought or incorporated into" are interpreted to mean that there must be a degree of permanency to the incorporation into the host good. The words "or attached to, other goods" are interpreted to mean fastened or affixed. The connections should be substantial but need not be permanent in nature. In all three instances (i.e., wrought into, attached to, or incorporated into) the imported goods must form an integral component of the aircraft, ground flying trainers, aircraft engines, airborne aircraft equipment, or parts thereof. The words "for use in" would exclude goods that may be attached to aircraft at the beginning or during the flight, but are removed at any ground point or at the finishing point of the flight.

Tariff item 9967.00.00

3.   This tariff item covers a broad range of goods. There are two specific criteria that must be met. The good must:

4.   Generally, consumable goods do not meet the definition of "for use in" found in section 2. Examples of such goods include grease and fuel oil.

5.   Examples of goods eligible for classification under tariff item 9967.00.00 include:

6.   Examples of goods that do not qualify for classification under tariff item 9967.00.00 include:

Tariff item 9968.00.00

7.   This tariff item covers a large range of goods for use in the manufacture, repair, maintenance, rebuilding, modification, or conversion of aircraft, ground flying trainers or aircraft engines, and parts thereof. There are a number of specific criteria that must be met in order to classify goods under tariff item 9968.00.00. The goods must:

8.   The word "directly" means there must be a close connection or link between the machinery or apparatus used in the process of production or repair of the aircraft, ground flying trainers or aircraft engines or parts thereof. Consequently, machinery and apparatus used in the planning and designing process of a manufacturing operation would not be included.

9.   Examples of goods classifiable under tariff item 9968.00.00 include:

10. The following goods are not considered to be used directly in the repair or manufacture of aircraft, ground flying trainers, aircraft engines, and parts thereof and/or are not classified in the Sections or Chapters specified in tariff item 9968.00.00. Consequently, they are not classified under this tariff item:

11. Goods used directly in the production or repair of aircraft, ground flying trainers, aircraft engines, or parts thereof, that do not fall within one of the Sections or Chapters specified in the tariff item do not qualify. For example, engine transport stands classified under heading 87.16. In addition, servicing equipment classified under Chapter 87, such as fuel trucks, lavatory service trucks, baggage wagons, and tractors, do not qualify.

Additional Information

12. For certainty regarding the tariff classification of a product, importers may request an advance ruling. Details on how to make such a request are found in CBSA Memorandum D11-11-3, Advance Rulings for Tariff Classification.

13. For more information, within Canada call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 – 16:00 local time/except holidays). TTY is also available within Canada: 1-866-335-3237.

References

Issuing office:
Trade and Anti-dumping Programs Directorate
Headquarters file:
HS 9967.00, HS 9968.00
Legislative references:
Customs Tariff
Other references:
D11-11-3
Superseded memorandum D:
D10-15-18 dated May 9, 2014
Date modified: