TARIFF CLASSIFICATION & BILINGUAL INTERPRETATION

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TARIFF CLASSIFICATION & BILINGUAL INTERPRETATION

CITT CONFIRMS THE NARROWER SHARED MEANING MAY DETERMINE THE RESULT

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Tariff classification is the process of identifying and categorizing goods imported into Canada under the applicable tariff provisions. It determines the applicable rate of customs duty and, in turn, how much duty an importer must pay when the goods enter Canada.

Tariff classification is governed by a detailed statutory framework under the Customs Act and the Customs Tariff. A recent decision of the Canadian International Trade Tribunal (“CITT”) highlights that tariff classification is not always a straightforward exercise and that bilingual statutory interpretation can play a decisive role.

Kimpex Inc. v. CBSA

In Kimpex Inc. v. CBSA (AP-2021-015), the goods at issue were various models of motorsport helmets. The dispute concerned their proper tariff classification. Kimpex Inc. argued that the helmets fell within “other protective headgear, athletic”, on the basis that participants in snowmobile and motocross racing must demonstrate a high degree of athletic ability.

The CBSA, on the other hand, framed the issue as whether the term “athletic” extends to motorized activities or sports. It argued that, because the term “athletic” is not defined in the legislation, it should be interpreted according to its ordinary meaning, which does not include motorized sports.

CITT’s Decision

The CITT accepted that the English term “athletic” was broad enough to potentially encompass some motorsport contexts, given the physical strength, agility and stamina required of participants.

However, applying bilingual statutory interpretation, the CITT also considered the French term “d’athlétisme” and found that it was narrower, encompassing activities performed using energy from one’s muscles rather than energy enhanced by an engine.

The CITT therefore concluded that the narrower French meaning represented the shared meaning of the English and French versions. As a result, the motorsport helmets did not qualify as “other protective headgear, athletic” and were instead properly classified as “safety headgear, other”. The appeal was dismissed.

What Does This Mean for Importers?

Kimpex is an important reminder that tariff classification cannot necessarily be determined by simply reading the English wording of the Customs Tariff. Where the English and French versions differ in scope, a classification that appears supportable based on one language version alone may not survive a bilingual statutory interpretation analysis.

Takeaways

Recent CITT jurisprudence shows that importers should consider both the English and French versions of the Customs Tariff when determining the proper classification of imported goods. Experienced Customs and Trade Counsel can assist importers in navigating complex classification issues.

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