Mr. Mihai Stroe
Amer Sports Canada Inc.
110-2220 Dollarton Highway
North Vancouver, BC V7H 3B2
Date of issuance of ruling:
This is in response to your request for an advance ruling on the tariff classification of the Suunto Ambit3. The product is imported by Amer Sports Canada Inc, located at 110 - 2220 Dollarton Hwy, North Vancouver, British Columbia, V7H 3B2.
The subject goods are wearable electronic devices. The device has the appearance of a wrist watch, with a round face, an opto-electronic LCD display and a wrist strap. The device has a CPU, RAM, flash memory, an accelerometer and orientation sensor, speaker, gyroscope, GPS, heart rate monitor and Bluetooth radio transceiver. Due to its various components, the device has many different functions including GPS tracking and navigation, altimeter, weather, speed and distance, heart rate, training, planning and analysis, multi-sports, running, cycling and swimming. The device’s Bluetooth allows it to connect or “pair” wirelessly to smartphones and tablets. Applications can be installed on the paired smartphone which allow users to share data between the two devices. Bluetooth also enables the device to receive electronic notifications from the smartphone, such as emails and SMS messages. Features of the device which do not require Bluetooth include displaying location using GPS, speed, altitude, track logging, route planning, tracking fitness activities (heart rate, peace, cadence, lap times, speed), temperature, time and date.
Analysis and Justification
Based on the information provided, this device is classified as a watch under heading No. 91.02 of the Customs Tariff. Specifically, it is a wearable time-keeping device with “extra elements” akin to a “sports watch” as contemplated in the Explanatory Notes to heading No. 91.02.
Some of the device’s components are prima facie classifiable elsewhere in the Customs Tariff, for example, the GPS and altimeter under heading No. 85.26, the Bluetooth radio transceiver under heading No. 85.17, and the heart rate monitor under heading No. 90.29. When goods are prima facie classifiable in two or more headings, classification cannot be determined through application of GIR 1. Therefore GIR 3 is applied.
GIR 3 (a) reads, in part, “The heading which provides the most specific description shall be preferred to headings providing a more general description”. Of the four headings under consideration, neither provides a more specific description over the other. Therefore, the device cannot be classified according to GIR 3 (a).
GIR 3 (b) provides that “composite goods…made up of different components which cannot be classified pursuant to Rule 3 (a), are to be classified as if they consisted of the …component which gives them their essential character”. The device’s essential character remains a watch of heading No. 94.01. The reason is that the Explanatory Note to heading No. 91.02 explicitly includes watches with complex systems, including watches which incorporate “extra elements”, such as “sports watches (e.g. watches for skin divers, with built-in depth indicator)”. The device is very similar to the description of a “sports watch” in the Explanatory Note, as most of the device’s features, including the GPS, altimeter and heart rate monitor, are designed for outdoor and sports utility.
Heading No. 85.17 was considered due to the device’s Bluetooth radio transceiver; however, most of the device’s core features are available without using Bluetooth and the device’s operating system does not require a wireless connection to function. Without the device’s time-keeping, navigation, training and sport functions, it would lose its identity and the majority of its functionality. Conversely, if the device had no Bluetooth wireless connectivity it would still be useful for outdoor, navigational, training and sport use, which is the device’s intended purpose.
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 device meets the terms of heading No. 91.02 of the Customs Tariff as a “wrist-watch”. The device has an opto-electronic display therefore it is properly classified under classification number 9102.12.00.00. This decision is made in accordance with General Interpretative Rules 1, 3(b), 6 and Canadian Rule 1.
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: