April 9, 2020 – Canada Border Services Agency (CBSA) has issued Custom Notice CN20-13 advising the import industry of an amendment to Chapter 16 of the Customs Tariff supplementary note 1 that will be effective on the day when the CUSMA/USMCA trade agreement is in force. The “specially defined mixture” definition will change and importers who currently hold a tariff classification advance ruling will need to request an affirmation from CBSA on the correct tariff classification to be used due to the new cooking requirements and exemption of the sauces in the calculation.
The new definition of “specially defined mixtures” (SDM) is identified below:
“Specially defined mixtures” of tariff items 1602.31.11, 1602.31.92, 1602.32.11 and 1602.32.92 means a product containing partially or fully cooked, including par-fried, chicken or turkey where 13% or more of the total weight of the product is comprised of goods other than the following listed goods: chicken, turkey, breading, batter, oil, glazing, sauces, other coatings, or bastes, or any added water (including that used in marination, glazing, sauces, other coatings, bastes, breading or batter). For the purposes of this definition, whether 13% or more of the total weight of the product is comprised of goods other than the listed goods shall be determined by calculating the total weight of listed goods contained in that product as a percentage of the total weight of the product.
The new SDM definition now has a cooking requirement, goods must be par-fried, partially or fully cooked. The definition will also change what is to be considered as part of the 13% other goods. Sauces are now excluded from the 13% calculation and bread, such as sandwich bread, can now be included in the 13% calculation.
Additional information concerning the requirements of the new SDM definition will be detailed in the upcoming CBSA’s Departmental Memorandum.
Importers who are in possession of a tariff classification advance ruling for goods classified under one of the following tariff classification numbers; 1602.31.11.90, 1602.31.92.00, 1602.32.11.20, or 1602.32.92.10 should submit a request for an affirmation of the ruling to the CBSA office where the original ruling was issued. A modified advance ruling will be issued by the CBSA amending or confirming the correct tariff classification number for the goods going forward.
A request for an affirmation of the ruling must be titled: “Request for an Affirmation of Ruling #XXXXXX”.
Importers who are in possession of a tariff classification decision resulting from a compliance verification or any other decision issued by the CBSA classifying their goods under one of the following tariff classification numbers; 1602.31.11.90, 1602.31.92.00, 1602.32.11.20, or 1602.32.92.10 should submit a request for an advance ruling to provide certainty of the correct classification of their goods.
To expedite the processing of affirmation requests, importers are encouraged to provide a complete list of ingredients and detailed manufacturing process for the goods. Importers must also state whether the facts or circumstances, other than the new CUSMA definition, upon which the original ruling was based have changed. A copy of the original advance ruling letter or decision issued by the CBSA should be attached. If the facts or circumstances of have changed, the CBSA may require additional documentation to confirm the tariff classification of the goods.
For more information on how to apply for an advance ruling please see Memorandum D11-11-3, Advance Rulings for Tariff Classification.