Tariff Classification of Kit CarsMemorandum D10-14-45

ISSN 2369-2391 Ottawa, November 2, 2015 This document is also available inPDF (25KB)[help with PDF files] The editing revisions made in this memorandum do not affect or change any of the existing policies or procedures. This memorandum outlines the Canada Border Services Agency policy as it relates to the tariff classification of kit cars under theCustoms Tariff.

Customs Tariff, headings 87.03, 87.06, 87.07 and 87.08

1. These units are specialized automotive assembly kits. After final assembly, they become fully operational replicas of antique classic or specialty motor cars. The kits consist of custom-built components such as the body and other parts, which would give the assembled vehicle the general appearance of an antique, classic or specialty motor car. All remaining components such as the engine and transmission are contemporary products that are used in the manufacture of current or late model cars.

2. The tariff classification of these kits is dependent on the number and type of components in the kit at the time of importation. Kits fall into one of the following three main categories: (a)The first type of kits consists of all the components necessary to assemble a complete motor car without any additional parts or accessories after importation. Such kits would be considered as unassembled motor cars of heading 87.03 and would be classified under the appropriate tariff item.(b)Kits, which consist of the body, as specified in the Explanatory Notes to heading 87.07, and an incomplete chassis frame of tariff item 8706.00.20, are considered to be incomplete and unassembled motor cars of heading 87.03 and would be classified under the appropriate tariff item. Such kits normally have a complete chassis-frame but require the addition of one or more of the following major components: the engine, the transmission and/or the steering column after importation.(c)The third type of kits is made up of only a body and minor parts and accessories such as wheels, mufflers and steering wheels. These kits are not considered to be incomplete and unassembled motor cars of heading 87.03. In such cases, each component in the kit must be individually classified under the appropriate tariff item. Generally, the body would be classified under tariff item 8707.10.00. The remaining parts and accessories would for the most part be classified under the appropriate tariff items of heading 87.08. This type of kit lacks a complete chassis-frame, a transmission and an engine, but may include some minor elements of the chassis. 3. It should be noted that the tariff classification of the third type of kit is based on the decision rendered onJune 11, 1990by the Canadian International Trade Tribunal inAppeal AP-89-228, R Bradley v D/MNR C&E.

4. For certainty regarding the tariff classification of a particular good, importers may request an advance ruling. Details on how to make such a request are found in CBSAMemorandum D11-11-3,Advance Rulings for Tariff Classification. 5. For more information, call contact theCBSABorder Information Service(BIS):Calls within Canada & the United States (toll free):1-800-461-9999Calls outside Canada & the United States (long distance charges apply):1-204-983-3550 or 1-506-636-5064 TTY:1-866-335-3237 Contact Us online(webform)Contact Usat the CBSA website