Mr. Mersad Khatami
Khatamico Innovations Inc.
452 15th Street East
North Vancouver, BC V7L 2R8
Date of issuance of ruling:
This is in response to your request for an advance ruling on the tariff classification of a 3-in-1 magnetic phone holder. This product is manufactured by F Beauty Trading Co., 1st Floor Block 9, 3rd of Cuigang Industry, Fuyong Street, Baoan District, Shenzhen, China.
Based on the information provided, this product is a 3-in-1 magnetic phone holder packaged for retail sale in a deluxe gift box. The item consists of a 3M adhesive pad, an N42 Neodymium Iron Boron magnet, a base and a top which the magnet is housed in, and a metal back plate. There is a small amount of PVC plastic on the surface of the magnetic top for printing purposes and a silicon ring to protect the phone from being scratched. The intended use of the product is to secure a mobile phone to a fixed point using magnetic force by securely attaching the phone to the magnetic base of the holder.
Analysis and Justification
The 3-in-1 magnet phone holder consisting of the 3M adhesive pad, the magnet, the iron base and the steel plates, is considered to be a composite good. As such, it is classified in accordance with General Interpretative Rule 3(b). Rule 3(b) states, in part, that composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to General Interpretative Rule 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
Since the holder is incapable of performing its function without the magnet, it is the magnet which provides the essential character to the good. Heading 85.05 provides for, inter alia, permanent magnets. Guidance is provided by Item (2) to the Explanatory Note to heading 85.05, which states:
Permanent magnets consist of pieces of hard steel, special alloys or other materials (e.g., barium ferrite agglomerated with plastics or synthetic rubber) which have been rendered permanently magnetic. Their shape varies according to the use for which they are designed. To reduce the tendency to de-magnetise, horseshoe-shaped magnets are often furnished with a bar of iron (the keeper) adhering to the two poles. Permanent magnets remain classified here whatever their use, including small magnets used, inter alia, as toys.
Articles intended to become permanent magnets after magnetisation are recognisable as such by their shape and composition, generally being cubes or discs (tags) of metal or of agglomerated ferrite (e.g., barium ferrite).
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 3-in-1 magnet phone holder is classified in 8505.11.00.00 by application of General Interpretative Rules 1, 3(b) and 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 as described in Memorandum D22-1-1, Administrative Monetary Penalty System.
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
- Date modified: