Mr Chen Guang
5805 Royalmount Avenue
Montréal, QC H4P 0A1
Date of issuance of ruling: March 22, 2017
This is in response to a request submitted on your behalf by Milgram & Company Ltd. for an advance ruling on the tariff classification of XMAS-8" Felt gift bag with embroidered face and rope tie, #3058468. This product is manufactured by/exported from Zhaoyuan Hengxing Arts & Crafts Co. Ltd, Zhaoyuan, Shandong, China.
|Effective Date:||March 22, 2017|
The product is a reusable gift bag measuring 5.5 inches wide and 8 inches high. Based on the sample provided, it is made of woven fabric of felt; man-made textile materials. The gift bag depicts the face of a penguin character wearing a red hat and a red bow tie. The hat has a white trim adorned with holly leaves and a berry. Drawstrings inserted into the upper edge of the bag forms a closure when pulled.
Analysis and Justification
Heading 95.05 covers festive articles, but according to the Explanatory Notes “The heading also excludes articles that contain a festive design, decoration, emblem or motif and have a utilitarian function”. This decorative gift bag provides the utilitarian function of carrying items.
The textile gift bag is classified according to its utilitarian function under heading 63.07, per Note 7(f) to Section XI, similar to bags of Explanatory Note (5) to heading 63.07, and is excluded by Legal Note 1 (w) to Chapter 95.
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.
Gift Bag # X3058468 is classified under Tariff Number 6307.90.99.90 of Canadian Customs Tariff in accordance with GIR 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 as 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.
A/Manager, Tariff Policy Unit ‘B’
Trade Policy Division
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