Trade Compliance

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Canada Customs & Other Regulatory Trade Updates: September-October 2018

Posted October 14, 2018

A summary of recent regulatory updates, notifications, and technical bulletins from the Canada Border Services Agency and other federal government departments, agencies and administrative entities concerning Canadian imports and exports.

Canadian Border Services Agency

Customs Notice 18-15: Highway Sufferance Warehouse Closure (Ottawa, Ontario)
Notice advising that effective November 30, 2018, Boyd Moving & Storage Ltd. will be surrendering its “BW” type highway sufferance warehouse licence at 1255 Leeds Avenue, Ottawa and that applications for another operator to take its place will be considered. https://www.cbsa-

Customs Notice 18-14: Arctic Shipping Electronic Commercial Clearances Program
Information on the ASECC pilot program, a risk-based alternative approach for clearing commercial cargo and conveyances in the marine mode, for specific vessels destined to the Arctic. The program is being updated for the 2019 arctic shipping season.

NIT2018IN: Certain Nitisinone Capsules
Notice that the CBSA has initiated an investigation pursuant to SIMA respecting the alleged injurious dumping of the subject goods (a medication used to slow the effects of hereditary tyrosinemia, a metabolic disease) from Sweden following a complaint filed by Laboratoires KABS Inc. and MendeliKABS Inc.

Memorandum D2-5-12: Telephone Reporting for General Aviation and Private Boats
Memo expanded to include guidelines and requirements related to CBSA services at a fixed base operator and the requirements for a telephone reporting site/marine.

Canadian Food Inspection Agency

Online Notification 10-10-2018: Update to the List of Live Shellfish From Ireland
CFIA has updated the List of establishments approved to export live or raw molluscan shellfish from Ireland to Canada to add Connemara Seafoods Frozen Limited.

Online Notification 10-10-2018: Outbreak of African Swine Fever in China and Europe
Alert advising that the CFIA is currently monitoring outbreaks of African swine fever in China and Europe (there have been no reported cases of African swine fever in Canada).

Memorandum 2018-05: Veterinary Biologics
Clarification of the Canadian Centre for Veterinary Biologics' requirements for submitting electronically approved and digitally signed Outlines of Production and Special Outlines of veterinary biologics imported from the U.S. into Canada.

Canadian International Trade Tribunal

AP-2017-025: Canadian Tire Corporation Ltd. v. President of the CBSA
The issue in this appeal is whether the X Rocker Sound Chair with Bluetooth can be classified under 9948.00.00 as “an article for use in automatic data processing machines (ADP machines), optical readers, video games used with a television receiver, other electronic games, or parts and accessories of such goods.”

Canadian Tire argued that the chair, which includes multimedia features making it suitable for gaming, watching movies or listening to music, is “for use in” the goods described in 9948.00.00, not only by reason of being “attached to” the host goods but is also “functionally joined” to them because it provides “a necessary or complementary audio output for the source devices.” Essentially, the appellant claimed the chair enhances the function of computer, DVD players and video game consoles to which it’s connected by acting as a speaker.

The CBSA submitted that, in order for goods to be functionally joined to other goods, they must enhance or complement the “specific function” for which the host goods are designed. The CBSA argued that computers, DVD players and game consoles are all ADP machines for the purposes of 9948.00.00 and that the specific functions of ADP machines are described in explanatory note 5(A) to Chapter 84. The CBSA argued that the chair doesn’t enhance or complement these specific functions, and, therefore, is not “functionally joined” to the host goods. Accordingly, the CBSA contended that the main function of the article in question is that of a chair and should therefore be classified as such under tariff item 9401.61.10 as “other upholstered seats with wooden frames for domestic purposes.”

After determining that the chair, through its built-in speakers and subwoofers, enhances the function of the host goods by providing a necessary or complementary sound output for those goods, the CITT allowed the appeal. In its decision, the CITT again reiterated a precedent that “the concept of ‘functionally joined’ simply means that the goods ‘for use in’ the host goods have a functional relationship (be it active or passive) with the host goods,” which it found that in this case had been established.

LE-2018-005: Circular Copper Tube
Statutory notice pursuant to SIMA that the CITT’s findings made in 2013 concerning the dumping of certain copper tube originating in or exported from Brazil, China, Greece, Mexico and South Korea, and the subsidizing of the subject goods from China, are scheduled to expire December 17, 2018, unless the CITT has initiated an expiry review.

PI-2018-005: Corrosion-resistant Steel Sheet (News Release)
Announcement that the CITT determined that there’s a reasonable indication the dumping of corrosion-resistant steel sheet from China, Taiwan, India and South Korea has caused injury or is threatening to do so to domestic producers. The CITT will continue its investigation and will issue a preliminary determination by October 24, 2018.

PI-2018-006: Nitisinone Capsules
Statutory notice that the CITT has initiated a preliminary injury inquiry pursuant to SIMA to determine whether there is reasonable indicate that the dumping of certain capsules and tables of nitisinone imported or originating in Sweden has caused injury or is threatening to harm domestic producers.

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