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Apparel for use in Competitive Shooting
Issue:
Whether gloves, footwear and shooting jackets are better classified under H.S.
No. 4203.21.90 as other articles of apparel and clothing accessories specially
designed for uses in sports; H.S. No. 6403.19.90 as other sports footwear; and
H.S. No. 6101.20.00 as men's or boys' cotton overcoats, car-coats, capes, cloaks,
anoraks (including ski-jackets), wind-cheaters, wind-jackets and similar articles,
knitted or crocheted or under H.S. no. 9506.91.90 as other articles and equipment
for general physical exercise, gymnastics, athletics, other sports or outdoor
games.
Result: Dismissed. The Tribunal found
that Chapter 95 of the Customs Tariff specifically excludes sports clothing, sports
footwear and gloves. The goods remain classified as 4203.21.90, 6403.19.90 & 9506.91.90.
Mouse
Pads
Issue:
Whether plastic and rubber mouse pads are better classified under H.S. No. 3926.10.00
as office or school supplies of plastics and H.S. No. 4016.99.90 as articles of
vulcanized rubber or under H.S. No. 8473.30.99 as accessories of a machine of
heading No. 84.71 (computer mouse).
Result: Allowed in part. The Tribunal
determined that the mouse pads are accessories for computer mouses and as such
found that the plastic mouse pads were properly classified under H.S. No. 8473.30.99.
However, the rubber mouse pads were excluded since they are considered
to be vulcanized rubber
articles of a kind used |
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for technical uses. The rubber mouse pads are properly classified under H.S. No.
4016.99.90.
Personal
Jewellery
Issue: Whether the goods are properly
classified under H.S.
| No.
7113.19.90 as jewellery or under H.S. No. 4907.00.10 as "liquid cash". |
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Result:
Dismissed. Goods are classified in accordance with what they are, not according
to their investment value or personal use, therefore the jewellery is correctly
classified under H.S. No. 7113.19.90.
Valves
Issue: Whether the valves are
properly classified under H.S. No. 8481.80.91 as hand operated or hand activated
valves or under H.S. No. 8481.80.99 as other valves.
Result: Dismissed. The Tribunal
determined that because the goods were normally operated with a T-bar type wrench
- a hand tool - the valves are hand operated/activated. The fact that the valves
were not imported with the tool does not change their method of operation.
Dutiable
Status of Commissions
Issue Whether commissions paid
to an agent should be added to the price paid or payable in accordance with sub
paragraph 48(5) (a) (I) of the Customs Act.
Result: Dismissed. The Tribunal
determined that the agent was not restricted to acting only in the interests of
its principal. Therefore the agent could not be considered a bona fide buying
agent in this instance. |
Canada
Customs & Revenue Agency (CCRA)
Michael L. Turcotte has been appointed as the Chair of the Board of Management
by the Honorable Martin Cauchon, Minister of National Revenue and Secretary of
State responsible for the Economic Development Agency of Canada for the Regions
of Quebec. In addition, Mr. Rob Wright, Revenue Canada's Deputy Minister, will
serve as the CCRA's Commissioner. For additional information regarding the structure
and framework of the CCRA, please refer to their new Web site at http://www.ccra-adrc.gc.ca
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Are Customs seizures on the increase? They may be, due to a number
of reasons. The following information will help you minimize the potential for
seizure activity against your company.
Why do Customs seizures happen anyway? There are many reasons, but
generally Canada Customs has evidence or reason to believe that goods are being
smuggled or the lawful payment of duties and taxes is being evaded. Frequently
it is an error made by the exporter that results in a seizure. However, in all
cases, it is the importer who is penalized; whose profile with Customs is negatively
impacted; and who will face an increase in inspection of future shipments. It
is the importer who must initiate an appeal in an attempt to clear their record.
The most common grounds for seizure activity are:
• False declaration of value, origin, and/or description of the goods being
imported;
• Inclusion of goods in a shipment but not in the documentation;
• Clerical error/oversight, such as improper faxing of documents (eg: when
two pages feed through the fax machine simultaneously).
Legitimate mistakes can and of course do occur. However, it is the
result, not the intent that is at issue. If Customs find an error at the time
of release, it results in a potential for seizure. Not all errors result in seizure
but errors certainly create the potential.
If an error is not noted by Customs, but is noted by the importer
after the fact, a voluntary entry should be initiated immediately.
When appealing a seizure, a record of voluntary compliance is one
of the strongest arguments in your favour. It allows us to say to Customs on |
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your behalf, "An error was made but the record proves that the importer would
have reported the error had seizure activity not been initiated". That argument
carries significant weight in the appeal process.
Of course, the safest
defense is to implement procedures with your foreign suppliers that will minimize
the potential for error. Check and double-check the paperwork. Ensure that all
goods loaded on the vehicle are included in the documentation (especially that
carton arriving in the shipping department just as the trailer is being closed!).
Are the values and quantities correct? Is the description adequate?
After receipt of the goods, check again. Make sure you got what you ordered;
that the value on the Customs invoice reflects the amount being paid. Verify quantities;
are there overages or shortages?
After receipt of the goods, check again. Make sure you got what you ordered;
that the value on the Customs invoice reflects the amount being paid. Verify quantities;
are there overages or shortages?
In the event you are subject to a Customs seizure, what will happen?
First, we will contact you to advise of the Customs action. We will inform
you of the amount to be deposited to gain immediate release of the shipment. We
will ask you to decide whether to pay the penalty or leave the goods with Customs.
We will ask you about your intent to appeal. We may request reports from the exporter,
the driver, and from any person who can provide information to support an appeal.
We will then file the appeal on your behalf.
Seizures are increasing and YOU SHOULD BE ENCOURAGED TO DO ALL YOU CAN
TO MINIMIZE YOUR EXPOSURE. |
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