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Memorandum D10-15-15

Ottawa, February 6, 1998

SUBJECT

INTERPRETATION OF TARIFF ITEM NO. 9959.00.00

This memorandum outlines and explains the interpretation of tariff item No. 9959.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff.

Legislation

Tariff item No. 9959.00.00 reads:

Materials of Section III, VI, VII, XI, XIII, XIV or XV or of Chapter 45 or 48, or electric conductors for a voltage exceeding 1,000 V (excluding winding wire and co-axial conductors), for use in the manufacture of passenger automobiles, buses, trucks, ambulances or hearses, or chassis therefor, or parts, accessories or parts thereof, other than rubber tires and inner tubes.

GUIDELINES AND GENERAL INFORMATION

Administrative Policy

1. Certain materials are admissible free of duty under tariff item No. 9959.00.00 when for use in the manufacture of passenger automobiles, buses, lorries (motor trucks), ambulances or hearses, or chassis therefor, or in the manufacture of parts, accessories or parts thereof, other than rubber tires and inner tubes.

2. The Department has always considered goods such as plastic sheeting, textiles, paper products, etc., not cut to size or shape, and artificial plastic moulding pellets to be "material" for the purposes of tariff item No. 9959.00.00. This does not include products such as cutting oils which may be used in the manufacturing process but which do not form part of the finished product. This broad interpretation has been given to both the English and French versions.

3. Tariff item No. 9959.00.00 is not restricted to materials for use in the manufacture of parts and accessories for original equipment manufacturing purposes; materials for use in the manufacture of aftermarket parts (repair and replacement parts) and across-the-counter accessories are also admissible. For example, materials for use in the manufacture of accessories such as car masks (grille protectors for sports cars), or wiring for use in the manufacture of parts such as ignition sets, are eligible for consideration under tariff item No. 9959.00.00.

4. The words "for use in the manufacture" are subject to the legal definition as found in section 2 of the Customs Tariff, which reads as follows:

"for use in," wherever it appears in a tariff item in respect of goods classified in the tariff item, means that the goods must be wrought or incorporated into, or attached to, other goods referred to in that tariff item.

5. For the purposes of tariff item No. 9959.00.00, the word "manufacture" does not include conversion. Therefore, material imported for customizing and converting motor vehicles to motor homes would not qualify for tariff item No. 9959.00.00. However, material imported for the manufacture of the chassis of these vehicles up to the point of leaving the automotive plant for delivery to the converter, may qualify for the benefits of tariff item No. 9959.00.00.

6. A "motor home," which is defined by Transport Canada as "a multi-purpose passenger vehicle that provides living accommodation for persons," is considered to be more than a "passenger automobile" and "truck" as provided for in tariff item No. 9959.00.00. In addition, vans which have been customized as motor homes are not considered to be "passenger automobiles." However, material for use in the manufacture of such vans up to the point where they leave the automotive factory for delivery to the converter, may be entitled to the provisions of tariff item No. 9959.00.00.

7. Snowmobiles, golf carts and similar recreational vehicles are not considered to be "passenger automobiles" for the purposes of tariff item No. 9959.00.00.