Tariff Classification of Imported Goods

To Whom Does This Apply?

Summary

• prohibitions;
• quotas;
• anti-dumping or countervailing duties;
• NAFTA provisions; or
• other preferential tariff treatments.

Importers must provide a complete and accurate description of their goods so that the correct tariff classification can be assigned to them. The description may consist of a general description with detailed characteristics of the goods (e.g. hot or cold rolled steel; textiles including percentage content of component fabrics; or named parts, such as nuts, bolts and gaskets). Or, it may include a commercial description (e.g. steel rods, plates, sheets and their size and dimensions).

The Canada Border Services Agency (CBSA) also consults:

• the Compendium of Classification Opinions to the Harmonized Commodity Description and Coding System; and
• Explanatory Notes to the Harmonized Commodity Description and Coding System.

In addition, classification is influenced by decisions made by the:

• Canadian International Trade Tribunal (CITT);
• Federal Court of Canada;
• Supreme Court of Canada; and
• World Customs Organization (WCO).

The Customs Tariff consists of 99 chapters. Chapters 1-97 cover all goods, from live animals to manufactured products to works of art. Within these chapters are a number of headings. Classification of goods is determined according to the terms of the headings and any relative Section or Chapter Notes.

Goods are classified under a 10-digit classification number. The first six digit are standardized for all countries using the HS. The seventh and eighth digits, for Canadian trade purposes, determine the customs duty rate. The ninth and tenth digits provide additional detail for statistical purposes.

Chapter 98 provides special relief provisions for non commercial goods.

Chapter 99 contains many provisions which eliminate or reduce the customs duty for qualifying goods.

Tariff classifications are not arbitrarily imposed. If an importer disagrees with a CBSA classification decision, the importer can appeal the decision to the CITT or, on points of law, to the Federal Court of Appeal or the Supreme Court of Canada.

If you require personal assistance contact the Customs Client Services Office closest to you (see Related Reading: Customs Offices - Supplement or from Canada Border Service Agency's Web site for a list of addresses).

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

Yukon Contact(s):
See National Contact.