Memorandum D10-15-21

Ottawa, June 26, 1998

SUBJECT

TARIFF ITEM NO. 9958.00.00

This memorandumwill clarify the Department's administrative policy respecting the interpretation of tariff item No. 9958.00.00 and pertains to certain articles used as original equipment in passenger automobiles, trucks, and buses. This information will be of special interest to automotive parts manufacturers assemblers, motor vehicle manufacturers, and their suppliers.

Legislation

Tariff Item No. 9958.00.00 reads:

Parts, accessories and articles, excluding tires and tubes, for use in the manufacture of original equipment parts for passenger automobiles, trucks or buses, or for use as original equipment in the manufacture of such vehicles or chassis therefor.

---

GUIDELINES AND GENERAL INFORMATION

Administrative Policy

1. It is important to note that unlike the provisions of the Motor Vehicles Tariff Order, 1998, any importer can utilize tariff item No. 9958.00.00 for the duty-free importation of articles (except tires and tubes), parts, and accessories. This is with the requirement that satisfactory evidence is produced confirming that the imported goods are used either:

2. The imported articles, parts, or accessories may be in the form of completed goods, or incomplete goods that require further processing and/or assembly to become completed goods. In both instances, the completed goods can be either used in Canada or subsequently exported, provided that they are employed only in original equipment applications outlined in the tariff item.

3. As previously stated, in order to qualify for the benefits of tariff item No. 9958.00.00, importers must be able to substantiate the end-use of the articles, parts, or accessories to the Department's satisfaction. This would take the form of a verifiable parts number audit trail both inside and outside Canada. In addition, importers must provide the appropriate Revenue Canada Trade Administration Services district office with a copy of contracts or letters of understanding.

4. An eligible importer under tariff item No. 9958.00.00 does not have to be a recipient or supplier as defined in the Motor Vehicles Tariff Order, 1998(see Memoranda D10-16-1, Classification of Goods Under Tariff Item No. 9957.00.00, and D10-16-3, Motor Vehicles Tariff Order, 1998), or hold a Special Remission Order remitting duties on certain motor vehicles, parts, or accessories, and parts thereof (see Memorandum D10-16-2, Remission of Customs Duties on Certain Motor Vehicles, Parts and Accessories, andParts Thereof). Nevertheless, importers, who are recipients or suppliers under the Motor Vehicles Tariff Order, 1998, or hold a Special Remission Order, are entitled to use tariff item No. 9958.00.00.

Exclusions

5. In addition to tires and tubes for original equipment, articles, parts, and accessories for after-market applications, and goods in the form of materials are not eligible for consideration under tariff item No. 9958.00.00.

6. Any questions concerning this matter should be directed to:

REFERENCES

ISSUING OFFICE -

Trade Policy and Interpretation Directorate

LEGISLATIVE REFERENCES -

Customs Tariff, tariff item No. 9958.00.00

HEADQUARTERS FILE -

HS 9958.00.00

SUPERSEDED MEMORANDA "D" -

N/A

OTHER REFERENCES -

N/A