Raciocínio CBSA
&&Section 10 of the Customs Tariff directs that classification of imported goods shall be determined in accordance with the General Rules for the Interpretation of the Harmonized System and the Canadian Rules set out in the schedule. Section 11 of the Customs Tariff states that in interpreting the headings and subheadings, regard shall be had to the World Customs Organization's (WCO) Compendium of Classification Opinions and Explanatory Notes to the Harmonized Commodity Description and Coding System (HS).&&&&General Interpretative Rule 1 (GIR 1) directs that titles of Sections, Chapters and sub-Chapters are provided for ease of reference only. For legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes. Similarly, General Interpretative Rule 6 (GIR 6) directs that classification shall be determined according to the terms of those subheadings and any related Subheading Notes.&&&&In your application for an advance ruling, you suggested tariff classification number 2206.00.90.00 or 1901.90.10. These tariff classification numbers are incorrect.&&&&As it relates to the product at issue, heading 19.01 provides for malt extract or preparations of malt extract. Malt extracts are obtained by concentrating the solution obtained by macerating malt in water. The malt base at issue is not obtained using this process and is not considered to be malt extract. Additionally, according to the explanatory notes to heading 19.01, food preparations of malt extract are products with a basis of malt extract. The product at issue could meet this heading but as it is designated as “not elsewhere specified or included”, all other potential headings must be considered first.&&&&Heading 22.06 provides for: “other fermented beverages (e.g., cider, perry, mead, saké); mixtures of fermented beverages and mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included”. The malt base product is obtained by fermenting water, sugar, malted barley, hops and yeast. Once the fermentation is&&complete, the resulting liquid is subjected to a filtration process to obtain a clear and colourless liquid with a neutral&&aroma. The malt base product has the characteristics of undenatured ethyl alcohol and cannot be classified in heading&&22.06 as it does not have the characteristics of, or meet the terms of “other fermented beverages”.&&&&Amongst other things, heading 22.08 provides for “Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80%”. The explanatory notes to this heading state, “… the heading also covers undenatured spirits (ethly alcohol and neutral spirits) which are characterised by the absence of secondary constituents giving a flavour or aroma.”. Based on the information provided, the malt base at issue meets this definition of undenatured ethyl alcohol as it has been&&filtered to remove the constituents providing it with a flavour or aroma. For this reason, the malt base is classified under heading 22.08 by application of GIR 1.&&&&At the subheading level, since the product at issue does not have any of the constituents imparting it with the flavour of whiskies, rums, etc., it falls to be classified under subheading 2208.90 by application of GIR 1 and 6. At the tariff item level, the product meets the definition of undenatured ethyl alcohol and is for the manufacturing of spirituous or alcoholic beverages. It is therefore classified under tariff item number 2208.90.21 by application of Canadian Rule 1.
