CBSA Reasoning
&&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 9505.90.00.90. This tariff classification number is correct.&&&&These cake decorations can be used as a ring, their primary intended use is as a topper for a cake or cupcake. While they come in a variety of designs and shapes, the question is whether or not these goods are “festive” in nature.&&&&In CITT AP-97-110 and AP 97-113, the Tribunal relied on the following definition of the word “festive” in the Gage Canadian Dictionary in reaching its decision: “For a feast, festival, or holiday; gay; joyous; merry: A birthday or wedding is a festive occasion.” The Tribunal also noted that a “decoration” is generally defined as “anything to add beauty: ornament” and that an “ornament” is defined as “something used to add beauty, especially a beautiful object or part that has no particular function in itself.” The Tribunal is of the opinion that a birthday along with other joyous events in a child’s life, can be considered a festive occasion. The goods in issue, which are used exclusively on birthday cakes or cakes to celebrate other joyous occasions, are decorations or ornaments associated with particular festive occasion.&&&&The Explanatory Notes of heading 95.05 provides for festive articles associated with a festival or festive period and not normally used outside that festival or festive period. Further, the EN of heading 95.05 includes the following exclusion: “articles that contain a festive design, decorations, emblem or motif and have a utilitarian function”.&&&&In CITT AP-2022-008, the Tribunal held that an articles may be considered festive in nature based on its physical characteristics and/or its function and description, including the manner in which it is advertised. Further, the Tribunal defined the term “utilitarian” as “designed to be practically useful rather than attractive; functional.”&&&&In order to determine if the good is classified under heading 95.05 as a festive article, specific criteria must be met. Customs Notice 22-14 provides guidance on the administration of heading 95.05. To be classified under this heading, the good must be associated with the celebration of a festive occasion, as evidenced by their shape, design, ornamentation, music and appropriate use. The goods are generally made of non-durable material and do not have a utilitarian function. They are decorative in nature or provide entertainment value during a festive occasion or a specific celebratory occasion.&&&&With its varying images including Santa, a giftbox, balloons and a “Happy Birthday” sign, to name a few, these cupcake decoration rings are associated with birthdays and other joyous occasions. They are advertised for birthdays and other celebrations as a decoration or topper for both cakes and cupcakes. Therefore, based on point 2 of the Customs Notice 22-14, the plastic cupcake decorations are considered to be festive.&&&&The Explanatory Notes of heading 95.05 indicates that “articles that contain a festive design, decoration, emblem or motif and have a utilitarian function” are to be excluded from this heading. Although the good features a festive design, classification under this heading also requires an assessment on whether the good has a utilitarian function. While the shape of the goods is that of a toy ring and although the ring aspect allows for the decoration to be held in place onto the cake or cupcake, the good is designed to create attraction and beautify a cake or cupcake and does not have a utilitarian function.&&&&Therefore, the Plastic Cupcake Decorations are classified under tariff item 9505.90.00.90 as per GIRs 1 and 6, and Canadian Rule 1.
