Ann Canada Inc.
5600-100 King Street West
1 First Canadian Place
Toronto, ON M5X 2A1
Date of issuance of ruling:
This is in response to a request submitted on your behalf by Milgram & Company Limited for an advance ruling on the tariff classification of Ladies Belt Style # 405575. This product is manufactured by/exported from Hang Fung Metal & Leather Goods Mfy., Xikeng, Henggang, Shen Zhen, China.
According to the information and sample submitted, this product, referred to as a Ladies Belt # 405575, is assembled from multiple layers of different materials. The outer surface consists of a linen portion with cow leather strips. Affixed to each end of the belt are two (2) long cow leather straps. The back material is made of polyurethane. Bonded leather is used as a filler for the inside material. This belt has no buckle or perforated holes.
Analysis and Justification
The submitted belt is considered a composite good, and no other notes provide any guidance for the goods as a whole in order to apply General Interpretative Rule (GIR) 1. Therefore, subsequent GIRs must be examined.
GIR 2(b) states “Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The Classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3.” As the product is composed of materials classifiable under two or more headings, GIR 3 is applied.
Based on the composition, the headings that are relevant to the belt are articles of apparel and clothing accessories of heading 39.26 (plastics), heading 42.03 (leather), and heading 53.09 (linen). As each heading refers to part only of the materials that make up the belt, GIR 3(a) cannot apply, and thus, GIR 3(b) comes into play.
In accordance with GIR 3(b), “composite goods consisting of different materials or made up of different components, which cannot be classified by reference to 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.” Furthermore, the Explanatory Notes to GIR 3(b) states that “The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.”
In the present case, the leather provides the essential character of this belt. Both its weight and role within the structure and style of the belt are the determining factors. Therefore, the submitted belt is considered an article of leather of heading 42.03.
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 classification of goods consisting of more than one material or substance shall be according to the principles of General Interpretative Rule 3 (GIR 3). Composite goods consisting of different materials or made up of different components shall be classified as if they consisted of the material or component which gives them their essential character.
The submitted belt is classified under tariff classification number 4203.30.00.00 of the Customs Tariff in accordance with General Interpretative Rules 1, 3(b) and 6 of the Harmonized System.
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
- Date modified: