Mr. Hanri Liu
Hantec Solutions Inc.
6-250 West Beaver Creek Road
Richmond Hill, ON L4B 1C7
Date of ruling: January 25, 2017
This is in response to your request for an advance ruling on the tariff classification of T-post with studs. This product is exported from China by Prestige Industries (TIANJIN) Inc.
|Effective Date:||January 25, 2017|
The product at issue is T-post, a type of steel fence post or picket. It is used as part of a fencing system in construction, ranch, and garden settings. These posts are commonly used in agriculture and erosion control. They are installed by being driven into the ground with either a manual or pneumatic post pounder.
The T-posts are made from billet and carbon steel and can vary from 4 to 6 feet in length. The end-profile is “T” shaped with one side having a slightly arched profile that curves away from the perpendicular member. Along this curved side, there is a raised spine running along the middle with evenly spaced protrusions. These stubs are functional by keeping fencing wire (e.g. barbed wire) or wire mesh in place. The product is shipped in 50 piece bundles, four bundles per pallet.
Analysis and Justification
You had been advised that the T-post should be classified under 7308.90.00.60 as other articles of iron and steel - columns, pillars, posts, beams, girders and similar structural units. Heading 73.08 applies to structures and parts of structures of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel. The Explanatory Notes to heading 73.08 state that “structures are characterized by the fact that once they are put in position, they generally remain in that position. They are usually made up from bars, rods, tubes, angles, shapes, sections, sheets, plates, wide flats including so-called universal plates, hoop, strip, forgings or castings, by riveting, bolting, welding, etc.” In addition, assembled railings and fencing are listed in the Explanatory Notes to heading 73.08. While T-posts may be used in a permanent setting, they do not have a permanence as part of a fencing structure in the same fashion as the assembled railings and fencing named in this heading.
Heading 73.26 provides for other articles iron or steel. The Explanatory Notes specifically state that the heading includes “fencing posts.”
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.
Based on the information provided, the T-posts with studs are classified under 7318.104.22.168 as other articles of iron or steel in accordance with GIR 1 and 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.
Please be advised that the goods covered by this advance ruling are provided for in a specific tariff provision that 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. In the event that you have been classifying these goods elsewhere in the tariff, you are obligated to self-correct. See Memorandum D11-6-6 for information on self-correction/self-adjustment.
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.
Manager, Tariff Policy Unit B
Trade Policy Division
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