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This is in response to your letter, dated December 02, 2008, to the National Commodity Specialists Division of U.S. Customs and Border Protection (“CBP”) in which you requested a binding ruling, on behalf of Optrex America, Inc., on the tariff classification of certain liquid crystal display (“LCD”) modules under the Harmonized Tariff Schedule of the United States (“HTSUS”). Your request was forwarded to this office for a response. In reaching this decision, we reviewed the product samples and schematics included with the submission.

(models A-55362GZU-T-ACN and A-55361GZU-T-CAN) and (2) the “T” prefix modules (models T-51440GL070H-FW-AF, T-51863D150J-FW-A-AA and T-55336D175J-FW-A-AAN).

The “A” prefix modules are LCD character displays used in automobiles. They contain drive circuitry capable of illuminating segments, characters or icons, but require an external microprocessor to instruct the drive circuitry to turn on or off. Model A-55362GZU-T-ACN is an automotive LCD radio display with message center capacity for Bluetooth connection status, climate control, a clock, and a compass. It contains approximately 25 segment-style characters, most of which display a full range of numbers and letters, and 50 permanently etched icons. The display measures approximately 7 inches in length, 2.5 inches in height, and 1 mm in thickness. Model A-55361GZU-T-ACN is an automotive LCD message display with radio, climate, and other limited display capabilities. It contains approximately 72 segment-style characters, most of which are capable of displaying a full range of numbers and letters, and 60 permanently etched icons. The display measures approximately 7 inches in length, 2.75 inches in height, and 1 mm in thickness.

The “T” prefix modules are thin-film transistor (“TFT”) LCD graphic displays for monitors of various types. As imported, the devices are not complete monitors; they contain drive circuitry, but lack a controller chip or card required to process signals. Models T-51863D150J-FW-A-AA and T-55336D175J-FW-A-AAN also lack an external power supply. Model T-51440GL070H-FW-AF is a 7 inch, 480 x 234 color display for automobile entertainment monitors. It is composed of a TFT cell, driver integrated circuits (“ICs”), a timing controller IC, a backlight unit, an inverter DC/DC converter, and a video circuit. Model T-51863D150J-FW-A-AA, is a 15 inch, 1034 x 768 XGA color display for monitors used in aviation and marine applications. It is composed of a TFT cell, driver ICs, a control circuit, a backlight unit, and a DC/DC converter. Model T-55336D175J-FW-A-AAN, is a 17.5 inch, 1280 x 768 WXGA color display for monitors used in medical and aviation applications. It is composed of a TFT cell, driver ICs, a control circuit, a backlight unit, and a DC/DC converter.

LCDs are prima facie classifiable in the following HTSUS headings: 8528, which provides for monitors and projectors not incorporating television reception apparatus; 8531, which provides for electric sound or visual signaling apparatus; and 9013, which provides for liquid crystal devices not provided for more specifically in other headings. By the terms of heading 9013, HTSUS, CBP first considers classification in headings 8528 and 8531, HTSUS. If an LCD does not meet the terms of those headings, it is classified in heading 9013, HTSUS. See Sharp Microelectronics Technology, Inc. v. United States, 932 F.Supp. 1499 (Ct. Int’l. Trade 1996), aff’d, 122 F.3d 1446 (Fed. Cir. 1997). See also Headquarters Ruling Letter (“HQ”) 959175, dated November 25, 1996.

You submit that the “A” prefix LCD character modules are classified in subheading 8531.20.00, HTSUS, as “Electric sound or visual signaling apparatus …: Indicator panels incorporating liquid crystal devices (LCD’s).”

It is well established that only those LCDs which are limited by design and/or principal use to “signaling” are classifiable in heading 8531, HTSUS. See Optrex America, Inc. v. United States, 427 F. Supp. 2d 1177 (Ct. Int’l Trade 2006), aff’d, 475 F.3d 1367 (Fed. Cir. 2007) (“Optrex”). See also, HQ H02661, dated July 8, 2008, HQ H012694, dated August 31, 2007, and HQ H003880, dated March 27, 2007. In Optrex, the Court of International Trade (“CIT”) explained that to be classified as an indicator panel incorporating LCDs under heading 8531, HTSUS, “the article must belong to the class or kind of merchandise that is principally used to display limited information that is easily understood by the person viewing it.” Optrex, 427 F. Supp. 2d at 1198. Further, the CIT accorded the “80 character rule” – guidance developed by CBP to determine whether a character display module is principally used for signaling – “some deference” under Skidmore v. Swift & Co., 323 U.S. 134 (1944), as a reasonable interpretation. According to the 80 character rule, if a character display module can display no more than 80 characters, then, in the absence of any information to the contrary, it is deemed to belong to the class or kind of merchandise that is principally used for signaling. Optrex, at 1199.

In Optrex, the court classified LCD segmented character modules with permanently etched icons capable of displaying no more than 80 characters, and containing drive circuitry, in heading 8531, HTSUS, as signaling apparatus. See Optrex, 427 F. Supp. 2d at 1199, aff’d, 475 F.3d 1367 (Fed. Cir. 2007). The instant “A” prefix LCD character modules are similarly operationally limited to performing signaling functions. They contain permanently etched icons that display, in 80 characters or less, limited information of the type an automobile driver would easily understand, e.g., velocity in miles per hour, the time, the temperature, music controls, etc. Moreover, they include the drive circuitry necessary to illuminate a particular segment, character or icon in the LCD based on signals transmitted from an external microprocessor. The functions performed by these modules are akin to those performed by the products listed as exemplars in the ENs to heading 8531. As such, we conclude that the “A” prefix modules are classified in heading 8531, HTSUS, as signaling apparatus.

You submit that the “T” prefix TFT graphic display modules are classified in subheading 9013.80.70, HTSUS, as “Liquid crystal devices not constituting articles provided for more specifically in other headings; …: Other devices, appliances and instruments: Flat panel displays other than for articles of heading 8528, except subheadings 8528.51 or 8528.61 [of a kind solely or principally used in an automatic data processing (“ADP”) system of heading 8471].” As noted above, an LCD can only be classified in 9013, HTSUS, if it is not more specifically described elsewhere, namely, in heading 8528, HTSUS, as monitors, or in heading 8531, HTSUS, as signaling apparatus.

Heading 8528, HTSUS, provides, in pertinent part, for “Monitors and projectors, not incorporating television reception apparatus.” To be classified as a monitor, a device must be capable of accepting, processing, and transmitting video or ADP signals. The subject modules cannot be classified as monitors because, as imported, they lack the necessary circuitry to accept, process, and transmit a video or ADP signal. The modules are also beyond the scope of heading 8531, HTSUS, which provides for signaling apparatus, because their use is not limited to that of signaling. That is, if connected to the appropriate controller circuitry, they can display an unlimited number of images. Accordingly, we turn to heading 9013, HTSUS.

Heading 9013, HTSUS, provides, in pertinent part, for “Liquid crystal devices not constituting articles provided more specifically in other headings.” LCDs of heading 9013, HTSUS, can be classified under one of two subheadings: 9013.80.70 or 9013.80.90. Subheading 9013.80.70, HTSUS, provides for: “Other devices, appliances and instruments: Flat panel displays other than for articles of heading 8528, except subheadings 8528.51 or 8528.61 [of a kind solely or principally used in ADP system of heading 8471].”

The “T” prefix modules are flat panel displays for use in monitors of heading 8528, HTSUS. You did not provide sufficient evidence to show that the modules are “for” articles of subheadings 8528.51 (of a kind solely or principally used with an ADP system) or 8528.61 (projection monitors). Accordingly, the exception to subheading 9013.80.70, HTSUS, does not apply. We conclude that the modules are classified in subheading 9013.80.90, HTSUS, as: “Liquid crystal devices not constituting articles provided for more specifically in other headings; …: Other devices, appliances and instruments: Other.”

By application of GRI 1, the “A” prefix LCD modules, models A-55362GZU-T-ACN, A-55361GZU-T-ACN, are classified in heading 8531, specifically in subheading 8531.20.00, HTSUS, which provides for “Electric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530; parts thereof: Indicator panels incorporating liquid crystal devices (LCD’s) for light emitting diodes (LED’s).” The 2009 column one, general rate of duty is Free.

By application of GRI 1, the “T” prefix TFT graphic display modules, models T-51440GL070H-FW-AF, T-51863D150J-FW-A-AA, and T-55336D175J-FW-A-AAN, are classified in heading 9013, specifically in subheading 9013.80.90, HTSUS, which provides for “Liquid crystal devices not constituting articles provided for more specifically in other headings; lasers, other than laser diodes; other optical appliances and instruments, not specified or included elsewhere in this chapter; parts and accessories thereof: Other devices, appliances and instruments: Other.” The 2009 column one, general rate of duty is 4.5 percent ad valorem.

May112015FRONT COVER ASSEMBLY, WITH LCD TP SPK FPC RECEIVER ASSEMBLY, ASAHI GLASS,H30-U10 (SPARE PARTS FOR MOBILE PHONES) (MATERIHong KongChennai Air CargoPCS350747,7152,136

Oct202014FRONT COVER ASSEMBLY, WITH LCD TP SPK FPC RECEIVER ASSEMLY,ASAHI GLASS,H30-U10 (SPARE PARTS FOR MOBILE PHONES) (MATERIAHong KongChennai Air CargoPCS3052,1831,739

Nov192016LDM-519-DDL DIGITAL LHDC MONITOR MODULE WITH LCD DISTANCE INDICATOR (FIRE FIGHTING EQUIPMENT) NO:700-451(INDUSTRIAL USE)United KingdomBombay Air CargoSET851,651,88619,434

Nov092016B01520-01 LCD REPEATER PANEL FOR SOLTION F1 SYSTEM ENGLISH VERSION INCL ENGLISH FRONT FASCIA GRAPHICS LC MODULE RS-485GermanyBombay Air CargoUNT118,77018,770

This memorandum outlines the conditions under which goods may qualify for duty-free entry under tariff item No. 9993.00.00 of the Schedule to the Customs Tariff. It also identifies those circumstances where temporarily imported goods are entitled to full or partial relief of the goods and services tax/harmonized sales tax (GST/HST).

1. All goods entering Canada, even those imported temporarily, are subject to duties and taxes (including the goods and services tax/harmonized sales tax (GST/HST)) on their full value, unless there is specific legislation in place that will entirely or partially relieve the importer of this obligation. As of January 1, 1998, with the introduction of the simplified Customs Tariff, the customs duty portion of various regulations, remission orders and tariff items was incorporated into tariff item No. 9993.00.00 and the Temporary Importation (Tariff item No. 9993.00.00) Regulations were issued.

2. The amendments to the Customs Tariff resulted in the deletion of some tariff headings and subheadings that had provided full or partial relief from the GST/HST (taxes paid or payable under Division III of Part IX of the Excise Tax Act). The Department of Finance has indicated that, in accordance with section 140 of the Customs Tariff, the GST/HST relief provided under section 1 of Schedule VII to the Excise Tax Act for goods classified under headings 98.12 and 98.19, and subheadings 9823.60, 9823.70 and 9823.80, will continue for those goods as if those headings and subheadings still existed. These provisions are:

(b) Former heading 98.19 – Goods imported for a period not exceeding six months for the purpose of display at a convention or a public exhibition at which the goods of various manufacturers or producers are displayed.

3. In addition, the pieces of legislation listed below, while amended to remove any references to customs duty relief, continue to provide tax relief, including relief of the GST/HST:

4. Questions regarding the GST/HST treatment of temporarily imported goods should be submitted to the address provided in paragraph 136 of this memorandum.

8. If the goods are customs duty-free when classified in Chapters 1 to 97 and they are not entitled to relief of the GST/HST, the importer should classify the goods under their applicable tariff item in Chapters 1 to 97, rather than tariff item No. 9993.00.00, (i.e., permanently import the goods) as there would be no benefit to using tariff item No. 9993.00.00. Rather, the importer would be restricted by the conditions of the tariff item.

13. An exception is made for spare parts imported for the purpose of racing. These parts qualify for full relief of the GST/HST under the provisions of Item 38 of the Schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations when they are imported by a non-resident.

17. There is no provision in the Excise Tax Act that allows for a rebate of the GST/HST paid on the unsold goods or the spare parts exported from Canada. Where the importer is a GST/HST registrant, an input tax credit would generally be claimed for the GST/HST paid on importation. Information on input tax credits and registering for the GST/HST is available from the contact identified in paragraph 136.

24. An exception is made for goods imported in response to an emergency or for testing by an approved organization. For example, fire suppressant foam imported for use in an emergency or nightgowns imported for flammability testing to meet CSA standards. Additional information regarding goods imported in emergencies is provided in paragraphs 65 and 92 through 95.

25. Goods imported under tariff item No. 9993.00.00 can only remain in Canada for a limited time, after which they must be exported, destroyed under CBSA supervision or duty paid. The legislation that relieves the GST/HST may further limit the importation period. For example, the legislation which provides academic regalia with relief of the GST/HST limits that relief to 30 days with no extensions. Further information on the importation period is contained in the section "Time Periods/Extensions".

28. As with other goods imported for repair, temporarily imported vessels which are imported into or remaining in Canada for repair, overhaul, alteration or adjustment are to be exported after the repair is complete. If the repair cannot be completed by the initial expiry date the importer or agent must contact the regional office to request a new expiry date. See the section "Time Periods/Extensions" in this memorandum for further information. Particularly for extensions beyond 18 months from the original date of entry, the importer/agent may be required to present documentation from the repair facility explaining why the extension is being requested and when the repairs will be completed.

32. Where the goods qualify for customs duty-free entry under tariff item No. 9993.00.00, the next step is to decide whether they are fully or partially relieved of all or part of the GST/HST normally payable under Division III of Part IX of the Excise Tax Act "Tax on Imported Goods", or of the excise duties payable under sections 21.1 to 21.3 of the Customs Tariff. The GST/HST may be fully or partially relieved, or the goods may not be entitled to any relief of the GST/HST.

33. Appendix B, "Goods and Services Tax/Harmonized Sales Tax (GST/HST) Relief", has been developed as a reference tool to assist in determining whether the goods qualify for relief of the GST/HST. If the goods are not listed in the Index, they are probably subject to full GST/HST. However, some of the key words in the Index are generic, such as "Commercial Samples" and "Display, goods imported for the purposes of," so, while the exact goods may not be identified, they may be considered under a less specific key word.

37. In addition to the CBSA documentation, the importer must present any documents or certificates required by other government departments as indicated in paragraphs 10 and 11.

44. The following table outlines the usual documentation requirements based on GST/HST treatment and whether the goods are customs duty-free or not, when classified in Chapters 1 to 97 of the Customs Tariff.

48. If the goods are entitled to relief of the GST/HST, or any other tax under the Excise Tax Act, the appropriate authorization code identified in Appendix B must appear in field 26 of the Form B3-3 or in field 6 of the Form E29B. The regular 10-digit classification number applicable to the goods under Chapters 1 to 97 of the Customs Tariff must be determined and entered in field 27 on the Form B3-3 or in field 9 on the Form E29B. The "General List" on the Carnet should be sufficiently detailed to enable the goods to be classified if the goods are not exported. The first four digits of tariff item No. 9993.00.00, i.e., 9993, are entered in field 28 of the Form B3-3 or in field 6 of the Form E29B.

50. Where goods are customs duty-free when classified in Chapters 1 to 97 of the Customs Tariff, and entitled to full relief of the GST/HST, there are exceptions to documenting the goods on a Form E29B or Carnet:

51. Temporarily imported goods that are customs duty free under Chapters 1 to 97 of the Schedule to the Customs Tariff and which are also eligible for GST/HST relief under the Non-taxable Imported Goods (GST/HST) Regulations, other than the goods that are eligible under paragraph 3(i), may be documented on a Form B3-3. Such goods include goods imported for the sole purpose of public exhibit by a public sector body under paragraph 3(c) and goods imported for the sole purpose of maintenance, overhaul or repair of those goods in Canada under paragraph 3(d).

52. Some goods that are eligible under these regulations may require additional documentation. For example, under paragraph 3(g) of the Regulations, "a print, an etching, a drawing, a painting, a sculpture or other similar work of art" must meet the requirements of subparagraphs 3(g)(i) through 3(g)(iii) to qualify. The importer must attach to or include the following declaration on the Form B3-3:

53. Goods that are eligible for GST/HST relief under the Goods Imported for Certification Remission Order are to be documented on a Form B3-3. The importer must maintain proof of export or, in the case of goods that are consumed or expended during the testing, copies of the testing results. Examples of goods that are consumed or expended during testing are chemical products, food products and goods imported for flammability and durability testing. The Temporary Importation (Tariff Item No. 9993.00.00) Regulations waive the requirement to produce evidence of exportation for goods that are consumed or expended during testing by an approved organization. A Form E15, Certificate of Destruction/Exportation, or a copy of the test results with a statement signed by a responsible individual attesting to the consumption or destruction of the goods in Canada while being tested or examined, must be available for review if requested. Special authorization code 87-1044 must be entered in field 26 of the Form B3-3 and, where necessary, "9993" must be entered in field 28.

54. The Foreign Organizations Remission Order, 1983, provides relief of GST/HST and excise taxes on equipment imported by a foreign organization holding a convention in Canada. The term "equipment" includes projectors, cameras, sound and lighting equipment, audio-visual equipment, typewriters or other office machinery imported exclusively for use in the conducting of the meeting or convention. A "foreign organization" is defined as a corporation whose head office is outside Canada or an association that is not incorporated and none of whose members are residents of Canada, but does not include a Canadian branch of any such association. The meeting or convention cannot be open to the general public. The equipment is imported under tariff item No. 9993.00.00 and the goods must be exported immediately after the conclusion of the meeting or convention.

55. The order also relieves the GST/HST and any excise taxes owing on souvenirs imported for free distribution, where the individual value exceeds CAN$25, and full or partial relief for official paraphernalia imported for sale, that are unsold or not given away during the convention or meeting as long as they are exported from Canada. For souvenirs valued at less than CAN$25 each, the GST/HST and excise taxes are relieved.

57. The GST/HST and any excise taxes paid or payable under Division III of Part IX and under any other Part of the Excise Tax Act on official paraphernalia imported by a foreign organization and sold at the meeting or convention (i.e., not exported by the foreign organization) may be fully or partially relieved under certain conditions. The relief on the non-exported official paraphernalia will be equivalent to the percentage of non-residents officially in attendance at the meeting or convention provided that:

60. Temporarily imported goods entitled to relief of the GST/HST under the Scientific or Exploratory Expeditions Remission Order, and imported under tariff item No. 9993.00.00 are to be documented on a Form B3-3. Special authorization code 95-132 is entered in field 26. The 10-digit classification number applicable to the goods under Chapters 1 to 97 must appear in field 27 and, if necessary, "9993" is to be entered in field 28. To satisfy the time limit provisions of both the Temporary Importations (Tariff Item No. 9993.00.00) Regulations and theScientific or Exploratory Expeditions Remission Order, the time limit in field 18 of the Form B3-3 should reflect the anticipated completion date of the expedition to a maximum of two years from the date of entry.

63. To extend the period of importation beyond two years, the importer must submit a Form B2, Canada Customs – Adjustment Request. Extensions will be granted for a maximum of two years at a time. The maximum period of customs duty relief is four years. At the end of the four years, the Form B2 seeking an extension will not have "9993" in field 28 and the customs duties must be paid for the goods. Under the Scientific or Exploratory Expeditions Remission Order, the Minister may grant extensions of the GST/HST relief for two years at a time as long as necessary to complete the expedition.

65. When goods imported under the Goods for Emergency Use Remission Order are consumed or destroyed in response to the emergency they cannot be exported. The Temporary Importation (Tariff Item No. 9993.00.00) Regulations waives the requirement to provide proof of export for these goods. Where a Form E29B was completed at the time of importation, a Form B3-3 should be completed for any goods that will not be exported. Special authorization code 73-2529 is to be entered in field 26 and, where necessary, "9993" should be entered in field 28. A Form E15 or a statement signed by a responsible individual attesting to the consumption or destruction of the goods in Canada must accompany the Form B3-3. Examples of the types of goods that qualify are fire suppressant foams, bandages, medical supplies and food products. A "responsible individual" includes, but is not limited to, a chief of police, a fire chief, a municipal mayor, a representative of the provincial government or another individual charged with responsibility for directing the emergency counter measures. See also paragraphs 92 through 95.

66. Goods previously classified under tariff item No. 9819.00.00 are now classified under tariff item No. 9993.00.00. As noted in paragraph 2, the Department of Finance has indicated that, in accordance with section 140 of the Customs Tariff, the GST/HST relief provided under section 1 of Schedule VII to the Excise Tax Act for goods classified under heading 98.19 will continue for those goods, as if the heading still existed. Former tariff item No. 9819.00.00 reads as follows:

Goods imported for a period not exceeding six months for the purpose of display at a convention or a public exhibition at which the goods of various manufacturers or producers are displayed.

67. Where the display goods are customs duty free when classified in Chapters 1 to 97, a security deposit is not required if the importer chooses to document the goods on a Form B3-3, with GST/HST Tax Status code 51 in field 35. The importer may also document the goods and post a security deposit, as provided for in paragraphs 44 through 49, 89 and 90.

68. Under Sections 5 and 5.1 of Schedule VII to the Excise Tax Act, replacement, including substitute, parts and goods sent to a particular person under a warranty arrangement qualify for GST/HST relief. However, these provisions do not apply where charges are made for the repair work, or the replacement part or good. In order to qualify under these provisions, the part or good must be supplied under a warranty for no consideration other than shipping and handling charges. Goods qualify for importation under tariff item No. 9993.00.00 when they are "on-loan" to a resident for use while the goods covered by a warranty are undergoing repair, or a permanent replacement is being sought.

69. When GST/HST relief is requested for goods or parts imported under these provisions, the importer or their designated representative shall, when importing the goods or parts, submit:

70. Where the goods are not customs duty-free when classified in Chapters 1 to 97 of the Customs Tariff, they may be temporarily imported under tariff item No. 9993.00.00 provided they will not be sold, leased or further manufactured or processed while they are in Canada. The goods must be documented on Form E29B, with authority "9993" and "special authorization code 55" entered in Field No. 6. The maximum security deposit required is equal to the customs duties and taxes (including the GST/HST) that would be owing were the goods imported permanently.

71. If the goods are customs duty-free when classified under Chapters 1 to 97 of the Customs Tariff, they may be documented on Form B3-3 with GST/HST exemption code 55 in Field No. 35. As the goods are customs duty-free, there is no benefit to using tariff item No. 9993.00.00. Rather, the importer would be restricted by the conditions of the tariff item. If tariff item No. 9993.00.00 is not used, there is nothing in legislation which requires the importer to post a security deposit for the GST/HST which would be owing were the goods being imported permanently.

72. When temporarily imported goods are eligible for full customs duty and tax relief, to ensure that the goods will be subsequently exported from Canada, the inspecting officer may require a security deposit. The maximum amount of the security deposit cannot exceed the duties (including the GST/HST and any other excise taxes) that would be payable if the goods were accounted for under the provisions of section 32 of the Customs Act (i.e., if the goods were permanently imported).

78. Other than for the exemptions listed in paragraphs 73 and 74 above, the requirement for security for residents" or non-residents" vessels imported or kept in Canada for repair and/or storage will depend on the compliance history of the importer or agent regarding these goods. Additional information concerning security deposits for these vessels is contained in Appendix A of this memorandum.

87. The amount of the security bond should be based on the amount of the duties and taxes, including the GST/HST, which would be owed, if the goods documented on the Form E29B were being imported permanently. For agents, the amount of the bond should be the maximum amount of duties and taxes that might be owed at any time during the year for all outstanding Form E29Bs.

89. An exception to determining the amount of security deposit owing by classifying the goods in Chapters 1 to 97 is made for display goods and goods integral to the display of these goods that qualify for relief of the GST/HST by application of Section 1 of Schedule VII to the Excise Tax Act reference to former tariff heading 98.19. In the case of goods that would have been imported under tariff item No. 9819.00.00, the security deposit is based on the Value for Duty (VFD) of the goods instead of the duties and taxes that would be owed if the display goods were being permanently imported. The current deposit required is 10 percent of the VFD of the goods. This amount reflects five percent GST combined with an average rate of customs duty of five percent.

90. This exception is applied only when the goods are documented on a Form E29B. The importer must attach an inventory of the goods imported for display to the Form E29B. The inventory should be sufficiently detailed to enable the goods to be classified at a later date, if necessary. When display goods are not individually classified in Chapters 1 to 97 on a Form E29B, but rather an inventory list and description is provided and the value for duty is used to determine the required security deposit, on the Form E29B field 6 should contain both "9993" and "heading 98.19", the words "display goods" should be written in field 8, and field 9 should be left blank. If the display goods are documented on a Form B3-3, they must be classified in Chapters 1 to 97 and be customs duty free without the use of "9993" in the tariff code field (field 28). See paragraphs 66 and 67 for additional information.

92. Goods imported for use in response to an emergency qualify under tariff item No. 9993.00.00, and the GST/HST is fully relieved under the Goods for Emergency Use Remission Order. As the goods are required on site quickly, the inspecting officer will try to expedite the clearance of the goods. No security deposit will be collected and, where the inspecting officer deems it necessary, only a simple blotter record on a Form E29B will be kept describing the goods in general terms. Depending on the circumstances, a Form E29B can also be issued after the fact. In cases where the emergency situation requires the release of the goods where officers or RCMP officers are not in attendance, a record kept by a responsible individual such as a chief of police, a fire chief, a municipal mayor, a representative of the provincial government or other individual charged with the responsibility of directing the emergency counter measures is acceptable.

96. Vehicles, vehicle components, and testing equipment permanently mounted on the vehicle, temporarily imported for cold weather testing, qualify for customs duty-free importation under tariff item No. 9993.00.00. The GST/HST is fully relieved under paragraph 3(i) of the Non-taxable Imported Goods (GST/HST) Regulations and any excise tax is fully relieved under Item 17 of the Schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations.

102. If the vehicle or vehicle components are written off during or after testing, any remains must be exported or destroyed under CBSA supervision. The officer certifying the destruction will complete a Form E15. Otherwise, the CBSA will consider the goods to have been permanently imported and they will be subject to full customs duties and taxes, including the GST/HST, and any OGD requirements as at time of importation.

103. Where the testing equipment is not "permanently mounted" to the vehicle, it may be entitled to partial relief from the GST/HST, at a rate of 1/60th, under section 3 of the Value of Imported Goods (GST/HST) Regulations that refers to Item 19 of the Schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations. These goods must be documented on a Form B3-3 and the partial GST/HST paid at time of importation. This pro-rated payment is not refunded at time of export.

107. Horses and other equines imported temporarily for pasturage, competition, training or breeding qualify for customs duty free entry under tariff item No. 9993.00.00 and are non-taxable for the purposes of the GST/HST under the Non-taxable Imported Goods (GST/HST) Regulations and Item 39 of the Schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations. These provisions apply whether the importer is a resident or a non-resident of Canada.

109. Goods imported temporarily under tariff item No. 9993.00.00 may remain in Canada for up to 18 months. This does not mean that the expiry date shown on the Form E29B is automatically 18 months after the date of release. Rather, if the importer expects the goods to be in Canada for less than 18 months, the expiry date should reflect that shorter amount of time. For example, if the goods are imported for a sporting event, the expiry date should be close to the date the event finishes.

110. If the goods cannot be exported before the expiry date identified on the Form E29B, the importer may apply for an extension. The application should be made before the expiration date. If the period of importation will remain within 18 months of the date of release, the request for an extension may be made at the nearest CBSA office. If the request takes the period of importation beyond 18 months, the application for an extension must be made in writing to the nearest regional CBSA office and must explain in detail why the importer finds it impracticable or impossible to export the goods. The period of importation may be extended in six-month increments to a maximum of 48 months (18 months plus 30 months).

111. Where the goods have been accounted for on Form B3-3, importers must submit a Form B2 to request an extension. For extensions beyond 18 months, a formal written application detailing the reasons why it is impracticable or impossible to export the goods must accompany the Form B2.

113. If Carnet holders wish to extend the date of final exportation beyond the expiry date of the Carnet, they must apply for an extension at the nearest CBSA office before the Carnet expires. If the extension request is approved, the Carnet holder has two options. The Carnet can be closed and a Form E29B, with appropriate security, issued. The Carnet holder may also apply to the original issuing organization for a replacement Carnet that must be presented to the nearest CBSA office. The period of importation allowed by the Form E29B or the replacement Carnet will not exceed whatever time remains in the original 18 months identified in tariff item No. 9993.00.00. Any requests to extend the period of importation beyond 18 months must be submitted to the regional CBSA office in writing and must explain in detail why the importer finds it impracticable or impossible to export the goods.

114. With few exceptions, the period of importation for which goods qualify for relief from the GST/HST mirrors the period of importation that the goods qualify for customs duty-free entry under tariff item No. 9993.00.00. To control those importations where time limits vary between the customs duty and GST/HST provisions, CBSA documentation will reflect the shorter time period.

115. Requests for extensions of the temporary importation period must take into consideration whether or not the GST/HST relief may also be extended. The legislation providing relief from the GST/HST may limit the CBSA"s ability to extend the GST/HST relief. Appendix B provides information on the length of time goods may be imported and qualify for GST/HST relief, as well as whether or not the period may be extended.

117. When the goods are accounted for, the date for determining the customs duty, GST/HST and currency conversion rates will be the date the goods were released by the CBSA and entered Canada.

124. Where it is determined that it was impracticable to comply with the export procedures outlined in paragraphs 119 to 123, one of the following documents may be accepted as proof of exportation:

127. To correct a declaration, depending on the original release or accounting document, a Form B3-3 or a Form B2 must be submitted to the appropriate regional CBSA office and any duties, including GST/HST and excise taxes, owing paid.

129. If the goods no longer qualify under tariff item No. 9993.00.00, they may also fail to comply with the terms of any of the related Remission Orders or Regulations. For example, goods imported under tariff item No. 9993.00.00 may also have been entitled to the provisions of the Commercial Samples Remission Order. If the goods are sold, they fail to comply with the conditions of the Remission Order. Under subsection 118(1) of the Customs Tariff, within 90 days after the date of failure to comply, the importer must report the failure to comply (diversion) to the CBSA and pay an amount equal to the amount of duties, including the GST/HST and any excise taxes, that were relieved. Depending on the original release or accounting document, when filing the Form B3-3 or the Form B2, the importer must ensure that the "Special Authority" and "Tariff Code" fields are left blank.

131. In accordance with subsection 33.4(1) of the Customs Act, the importer is liable to pay interest against any outstanding duties, including the GST/HST and any excise taxes, owed to the CBSA, from the day following the day the person became liable to pay the amount (e.g., original date of accounting or release) until the amount is paid in full. For example, where it is determined that the goods were imported incorrectly under tariff item No. 9993.00.00 because they were imported to be sold, the importer is obligated to pay interest on the amount owing from the day following the original date of release until the amount owing is paid.

132. Under subsection 123(2) of the Customs Tariff, interest is also owing against any duties, including GST/HST and excise taxes, owed the CBSA for the period beginning on the day that the goods were no longer in compliance with the terms of a remission order and ending on the day the amount is paid in full. However, under subsection 123(4), no interest will be incurred if the importer pays the amount owing within 90 days of the date of failure to comply. Continuing with the example in paragraph 130, if the duties, including GST/HST and any excise taxes, owing on the goods are paid within 90 days of the failure to comply, no interest will be charged on that portion of the amount owing. If the duties, including GST/HST and any other excise taxes, are not paid until after 90 days, interest will be charged as of the date of release.

133. In accordance with sections 109.1 through 109.5 of the Customs Act, every person who fails to comply with any provision of that Act, the Customs Tariff, the Special Import Measures Act or any regulation made under any of those Acts is liable to a penalty of not more than $25,000, as the Minister may direct. The penalty is payable on the day the notice of assessment of the penalty is served on the person. In addition, interest on the penalty will also be payable for the period beginning on the day after the notice was served on the person and ending on the day the penalty has been paid in full. However, the interest is waived if the penalty is paid in full within 30 days after the date of the Notice of Assessment. Continuing with the example in paragraph 132, if the importer submits a Form B2 to adjust the accounting declaration for the goods, to pay the duty and interest owing, including the GST/HST and any other excise taxes relieved, no penalty will be assessed. If a Form B2 is not submitted and a penalty is assessed, the importer will be liable to pay the penalty as well as the applicable duties and interest. If the penalty is paid within 30 days after being received, no interest will be payable on the penalty.

(d) For vessels other than those described in paragraphs (a) or (c) and where the importer or agent who is submitting the Form E29B has been compliant for two years from the last date of non-compliance, a security deposit of 50% of the duties and taxes that would normally be payable on the vessel if it were imported to Canada will be required. The importer or agent at issue must provide such compliance documentation if requested; and

(e) For vessels other than those described in paragraphs (a), (c) or (d) and where the importer or agent who is submitting the Form E29B has been compliant for three years from the last date of non-compliance, no security deposit will be required for the vessel at issue. The importer or agent at issue must provide such compliance documentation if requested.

Also includes those goods that form part of the display such as stands, tables, backdrops, decorations, display booths, tents and other housings or coverings when these goods form a part of the entire display. In the case of tents that must, by such characteristics as design, colour, material composition and structure, do more than house the display. They must form a physical, visual and integral part of the display.

Examples: Includes products which are on display and those that form part of the display such as stands, tables, backdrops, decorations, display booths, tents, and other housings or coverings when these goods form a part of the entire display. In the case of tents, that must, by such characteristics as design, colour, material composition, and structure, do more than house the display. They must form a physical, visual, and integral part of the display.

Beyond the two months, the Side Shows and Concessions Remission Orderplaces no restriction on how long the concession or side show may remain in Canada.

Specially designed tools imported by an organization referred to in any of Codes 1750 to 1756 of Schedule II to the former Act for the maintenance, checking, gauging or repair of scientific equipment in use at or by those organizations.

Note:Questions regarding tariff item No. 9993.00.00 and/or the temporary importation of goods should be directed to the contact information in paragraph 135 and, for GST/HST information, paragraph 136.

Requirements for authorization to use the provisions of tariff item No. 9993.00.00 and subparagraph 3(i)(i) of the Non-taxable Imported Goods (GST/HST) Regulations (reference to Item 17 to the Schedule of the Temporary Importation (Excise Levies and Additional Duties) Regulations), to temporarily import vehicles, vehicle components, and testing equipment permanently mounted on the vehicle, for cold weather testing.

Among industry classification systems, Harmonized System (HS) Codes are commonly used throughout the export process for goods. The Harmonized System is a standardized numerical method of classifying traded products. It is used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics.

The HS is administrated by the World Customs Organization (WCO) and is updated every five years. It serves as the foundation for the import and export classification systems used in the United States and by many trading partners.

The HS assigns specific six-digit codes for varying classifications and commodities. Countries are allowed to add longer codes to the first six digits for further classification.

The United States uses a 10-digit code to classify products for export, known as a Schedule B number, with the first six digits being the HS number. There is a Schedule B number for every physical product, from paper clips to airplanes. The Schedule B is administered by the U.S. Census Bureau’s Foreign Trade Division.

You will need both the U.S. Schedule B number and the foreign country’s version of the HS code for your product during the export process. You use it to:

If your product is difficult to classify, the Customs Rulings Online Search System (CROSS) database can help you find its Schedule B code. CROSS contains official, legally binding rulings from other exporters’ and importers’ requests for Schedule B codes. Use this database to determine whether other exporters or importers requested a ruling on the same or a similar product and, if so, what that ruling was.

Shipping multiple items as a set: For the most part, determining a product’s Schedule B code is straightforward. For example, an unassembled bicycle that is sold in a box containing the bicycle frame, handlebars, pedals, and seat is classified as a bicycle (because the item is sold as one unit) and not as several different components. Some sets, however, are harder to classify. Rule 3 of the General Rules of Interpretation (GRI) of the Harmonized Tariff Schedule addresses composite goods, mixtures, and items that are sold in a set. The GRI has established a three-step process for determining the Schedule B code in such situations; the introduction to the official Schedule B publication contains the relevant passage.

Textiles/Apparel shipped as a set:The rules that govern Schedule B codes for textiles and apparel sets are unique. Refer to GRI Chapter 50, Note 14 for more information.

To determine what the HS Code for your product is in another country, you can use a lookup tool in a foreign tariff database, such as the Customs Info Database.

A monitor may be intended for a specific purpose, such as medical systems to display clinical data or navigation systems to display data. If a monitor directly connects to a computer and is designed for use with one, it’s not considered to be solely or principally used with a computer system of heading 8471. Therefore, it is classified under subheadings 8528 52 91 or 8528 52 99, depending on the technology (for example, if it has a LCD display).

LED (light emitting diode) walls intended for outdoor viewing comprise several modules made of tiles, each tile contains red, green and blue LED’s. They also have a video processor and a signal processor, allowing signal inputs and scaling of images and video to be displayed. They are classified under subheading 8528 52 99.

New tariff entries such as HS Code 8708.22.00 for windscreens used in motor vehicles; electrical and electronic waste and scrap under heading 8549, with multiple sub-headings (formerly classifiable under the applicable subheadings of chapters 38, 70, 71, 84, 85, 90, 91, and 950); HS Codes 8517.13.00 and 14.00 to cover smartphones and other telephones for cellular networks; and HS Codes 8539.51.00 and 52.00 for LED modules and lamps.

New explanations in the chapter notes such as the addition of definitions of smartphones, flat-panel display modules, LED light sources, and semiconductor devices in Chapter 85.

Reshuffled designations under the same chapter, such as the HS code for road tractors for semi-trailers moved to 8701.21.00, 22.00, 23.00, 24.00, and 29.00 from their earlier classification under 8701.20.10, and 20.90, Motor Vehicles for transport of goods.

These are 6 rules for the classification of goods under the HS. They intend to provide uniform legal interpretation of HS nomenclature for the proper classification of goods, although in practise there is some variation across countries. The GRIs are applied in strict number order. Here we give some examples.

For the purposes of 8524, “flat panel display modules” refer to devices or apparatus for the display of information, equipped at a minimum with a display screen, which are designed to be incorporated into articles of other headings prior to use. Display screens for flat panel display modules include, but are not limited to, those which are flat, curved, flexible, foldable or stretchable in form. Flat panel display modules may incorporate additional elements, including those necessary for receiving video signals and the allocation of those signals to pixels on the display. However, 8524 does not include display modules which are equipped with components for converting video signals (e.g. a scaler IC, decoder IC or application processer) or have otherwise assumed the character of goods of other headings.

“Light‑emitting diode (LED) modules” which are electrical light sources based on light‑emitting diodes (LED) arranged in electrical circuits and containing further elements like electrical, mechanical, thermal or optical elements. They also contain discrete active elements, discrete passive elements, or articles of 8536 or 8542 for the purposes of providing power supply or power control. Light‑emitting diode (LED) modules do not have a cap designed to allow easy installation or replacement in a luminaire and ensure mechanical and electrical contact.

“Light‑emitting diode (LED) lamps” which are electrical light sources containing one or more LED modules containing further elements like electrical, mechanical, thermal or optical elements. The distinction between light‑emitting diode (LED) modules and light‑emitting diode (LED) lamps is that lamps have a cap designed to allow easy installation or replacement in a luminaire and ensure mechanical and electrical contact.