** HIGHLIGHTS ** *
- The Federal Court of Canada has overturned a decision of the Canadian International Trade Tribunal, which held that the duty free import of goods into Canada under tariff item No. 9903.00.00 in the Customs Tariff was restricted to materials connected with farming, agriculture, horticulture or agribusiness, noting that some goods in the listed items in this tariff item do not fit this description. The goods in question were to be used in the manufacture of towers for wind turbines. The Court referred the issue back to the Trade Tribunal for reconsideration. (Marmen-Énergie Inc. v. Canada (Border Services Agency), CALN/2014-020, [2014] F.C.J. No. 454, Federal Court of Appeal)
** NEW CASE LAW **
Marmen-Énergie Inc. v. Canada (Border Services Agency); CALN/ 2014-020, Full text: [2014] F.C.J. No. 454; 2014 FCA 118, Federal Court of Appeal, Noël, Webb and Scott JJ.A., May 7, 2014.
Customs Duties -- Materials Connected to Farming, Agriculture, Horticulture and Agribusiness.
Marmen-Énergie Inc. appealed to the Federal Court of Canada from a ruling of the Canadian International Trade Tribunal with respect to whether goods used by Marmen-Énergie Inc. and Marmen Inc., for the manufacturer of towers for wind turbines can be classified under tariff item No. 9903.00.00 of the schedule to the Customs Tariff as "articles and materials that enter into the cost of manufacturer and repair of" or an "article used in" wind mills and thereby benefit from duty free treatment pursuant to this classification.
The CITT had concluded that all host goods listed in tariff item No. 9903.00.00 must have a connection to farming, agriculture, horticulture or agribusiness and that the goods in issue do not qualify as they have no such connection.
Decision: Noel, J.A. (Webb and Scott, J.J.A concurring) allowed the appeal and set aside the judgment of the CITT [at para. 7].
Noel, J.A. agreed with the appellant that it could not be concluded with certainty that tariff item No. 9903.00.00 required that all the host goods have a farming, agricultural, horticultural or agribusiness connection. He agreed that some items under the classification, such as "machinery for filling bottles used in the beverage industry" indicated that all listed goods might not need to be connected to farming, agriculture, horticulture or agribusiness [at para. 5].
Noel, J.A. referred the matter back to the tribunal for adjudication based on an analysis which takes into account of the addition of "machinery for filling bottles for use in the beverage industry", to the listed items in the tariff item in question.
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