Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Canada Border Services Agency Releases D-Memo on Tariff Classificaiton of Certain Articles Using Bluetooth® Technology

On June 16, 2009, the Canada Border Services Agency (CBSA) released D-Memo 10-14-57 "Tariff Classification of Certain Articles Using Bluetooth® Technology".  Before we discuss the contents of the D-Memo, let's discuss why this is important.  The CBSA has recently made determinations that are inconsistent with this D-Memo.  Let me be clear- I do not believe that the CBSA has intentionally misclassified articles using Bluetooth® Technology.  Certain verification officers, in the course of doing their jobs, have made errors.  Just like importers have made tariff classification errors.

Companies that import articles that include Bluetooth® Technology, including earphones, headsets, adaptors and other goods for use with cell phones, and have recently been the subject of a tariff classification verification may be able to pursue their legal rights if they have received a recent incorrect tariff classificaiton redetermination.  If a redetermination has been made by the CBSA in the last one year, the importer should look at the tairff classifcaiton and if the CBSA's tariff classification resulted in duties owing, the importer may be able to file a request for an extension of time to file a request for a redetermination.  AS previously discussed on this Trade Lawyers Blog, an extension of time may be requested within one year after the expiration of the 90 day "appeal" deadline. As a result, an importer would have 265 + 90 days from the date of a detailed adjustment statement to file a request for determination.  If the deadline has passed, it may be possible to apply for a remission order to obtain a refund of the duties and interest (and possibly any AMPs penalties for incorrect tariff classification).

D-Memo 10-14-57 "Tariff Classification of Certain Articles Using Bluetooth® Technology" sets out the CBSA's current position on what is the proper tariff classification (which has an MFN rate of 0%).

Bluetooth® enabled goods are classified under H.S. heading 8517.  For detailed information, please go to the D-memo - http://www.cbsa-asfc.gc.ca/publications/dm-md/d10/d10-14-57-eng.pdf

Some of the examples in the D-Memo discussed include:

Bluetooth® enabled adapters = 8517.62.00

Bluetooth® enabled mobile headsets = 8517.12

For more information, please contact Cyndee Todgham Cherniak at 416-307-4168 and Corinne Brule at 613-232-7171.

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