Mr. Mathias Vogt
Date of issuance of ruling:
This is in response to the request filed on your behalf by Auburn et Tremblay for an advance ruling on the tariff classification of Cielos Crunchy Olives : Paprika, produced and exported by Dumet AG (Switzerland).
This product is a ready-to-eat snack of mechanically pitted black olives each in a thin, individual paprika seasoned coating of rice-flour made crunchy through baking. It is sold for retail in bags of 60 grams.
Analysis and Justification
Under the Customs Tariff, olives are considered a Chapter 7 vegetable. The product itself however is excluded therefrom by said Chapter’s General Explanatory Notes:
whether fresh, chilled, frozen (uncooked or cooked by steaming or boiling in water), provisionally preserved or dried (including dehydrated, evaporated or freeze-dried).
As olives coated in rice-flour, seasoned with paprika, and baked, the good at issue is excluded from Chapter 7 and better defined as a “preparation” under the Customs Tariff.
This product cannot be a “preparation” of rice-flour under Chapter 11, as it consists mainly of olives (which are vegetables) and said Chapter’s Legal Note 1(d) states:
This Chapter does not cover:
(d) Vegetables, prepared or preserved, of heading 20.01, 20.04 or 20.05
This product is thus a “preparation” of vegetables under Chapter 20, which covers “Preparations of vegetables, fruit, nuts or other parts of plants”.
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.
This product is to be classified as olives prepared or preserved otherwise than by vinegar or acetic acid, not frozen, under tariff item 2005.70.90.00, as per GIRs 1 & 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 and in accordance with the procedures described in Memorandum D11-11-3, this ruling may be published on the CBSA website within 30 days.
Manager, Tariff Policy Unit 'B'
Trade Policy Division
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