Mr. Branislava Milojevic
Nexans Norway AS
Box 6450, Innpurten 9, Etterstad
Date of issuance of ruling: March 10, 2016
This is in response to a request submitted on your behalf by PF Collins International Trade Solutions for an advance ruling on the tariff classification of Submarine Power Cables. This product is manufactured by/exported from Nippon High Voltage Cable Corporation, Futtsu, Chiba, Japan.
|Effective Date:||March 10, 2016|
According to the documentation provided, the product is a 100-km long power cable (divided in eight sections) that will be used as a link between Forteau Point (Labrador) and Shoal Cove (Newfoundland and Labrador) underneath the waters of the straits of Belle-Isle. The cable will be installed in a conduit drilled under the seabed and will be used as a part of the electric grid infrastructure of the region (Lower Churchill Project) through the Labrador-Island Transmission Link, a High-Voltage Direct Current (HVDC) system.
The contents of the cable consist of three power phases and two separate optic fiber cable elements. Two power phased cables will be used to carry electricity and the third power phased cable will be used as a spare in case of damage to the other cables. The submarine cable has a combined voltage of 245kV (three power phased cables) while each of the cable, taken individually, has a nominal voltage of 350kV and a maximum of 360.5kV.
Each of the individual cables is composed of copper as a conductor and insulated in impregnated paper tapes and inserted inside a lead sheath (water insulation) and then a plastic sheath to protect it. The cable is then reinforced/armored in galvanized steel to resist the forces during installation and to provide a mechanical protection after installation. Over the steel is the outer sheath consisting of polypropylene yarn and plastic sheath to protect the armoring.
Analysis and Justification
The product fulfills the description of an insulated electric cable found in the first paragraph of the Explanatory Note (EN) to heading 85.44. It also meets the descriptions found in Items (A) to (D) of that that EN. Furthermore, the submarine cable has a combined voltage of 245kV (3 power phased cables) while each of the cables, taken individually, has a nominal voltage of 350kV and a maximum of 360 kV.
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 submarine cable at issue is classified under 8544.60.10.00 by application of General Interpretative Rules 1 and 6.
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 D-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: