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 9406.10.90.00. This tariff classification number is incorrect.&&&&The good is a comprehensive sauna kit, which consists of all components necessary for an outdoor sauna intended to be used in a domestic environment. The main components of this kit is the solid Japanese cedar, which is fundamental for the product’s structural component, and the 9kW heater, which provides for the product’s functional component. The wooden component accounts for the structure, volume and physical appearance of the product as it forms the outer walls and internal elements. The 9kW heater generates high, controlled temperatures and radiates heat required to produce a thermal environment. As the product is a composite good made of different components, it is classifiable under multiple headings and cannot be classified using GIR 1.&&&&The good is presented unassembled and, therefore, can be classified using GIR 2(a).&&&&Legal Note 4 of Chapter 94 provides that for the purpose of 94.06, “the expression ‘prefabricated buildings’ means buildings which are finished in the factory or put up as elements, presented together, to be assembled on site, such as housing or worksite accommodation, offices, schools, shops, garages or similar buildings.” The wooden component of the good meets this requirement and are classifiable under heading 94.06 as a “prefabricated building”.&&&&Explanatory Note (E) of Heading 85.16 provides, “This group includes all electro-thermic machines and appliances provided they are normally used in the household.” The heater component of the good meets this requirement and is classifiable under heading 85.16 as “other electro-thermic appliances of a kind used for domestic purposes”.&&&&The product is classifiable in heading 94.06 and heading 85.16 and can, therefore, be classified further using GIR 3. Both headings only describes a part of this good, and are considered equally specific in relation to this good, therefore it cannot be classified using GIR 3 (a). GIR 3 (b) classifies the goods based on the component which provides the essential character for this good. The good is marketed and sold as an outdoor sauna. Without the 9kW heater, the product would merely be a cedar wooden shed or enclosure. The heater is what generates the high, controlled temperatures required to create the distinct thermal environment of a sauna. As the heater offers the core functional aspect required for the product to be a sauna, it provides the essential character of this good. Therefore, the product may be classifiable in heading 85.16, according to GIRs 2(a) and 3(b).&&&&The good is not covered in the preceding subheadings and is classified as “Other electro-thermic appliances: Other”, 8516.79, according to GIR 6.&&&&As the good is not a fabric steamer, it is classified as “other”, 8516.79.90.00, according to Canadian Rule 1.