CUSTOMS AND EXCISE |
Customs Tariff |
Sable Offshore Energy Inc. v. Canada (Commissioner, Customs and Revenue Agency)
A-361-02
2003 FCA 220, Noël J.A.
14/5/03
10 pp.
Classification--Appeal pursuant to Customs Act, s. 68 from Canadian International Trade Tribunal classification of certain line pipe imported by appellant--Before CITT, appellant argued pipe ought to have been classified as component of gas-processing machine--CITT agreed facilities function together as gas processing unit and that pipe, essential to function of unit, appropriately fell to be classified as component of functional unit--CITT nonetheless held classification not open to it as other elements of functional unit had not been so classified and time period for reclassification had expired; accordingly pipe had to retain original classification--Appeal allowed--Question herein whether Customs Act or Customs Tariff precluding classification of component of functional unit under tariff item appropriate to that unit when other components of that unit were classified otherwise and no longer eligible to be reclassified due to operation of limitation period--Decision of CITT cannot withstand type of probing examination which standard of reasonableness calls for--Here, CITT's reasons not capable of supporting decision--Only consequence attaching to proper classification of pipe that amount of duties will be set according to appropriate classification--Such classification not reaching into past, does not result in reclassification of other statute-barred components-- Absurdity, if any, would lie in refusing to classify pipe under proper tariff heading simply to maintain consistency with previous, erroneous classification that cannot be revisited due to limitation period--No more uncertainty resulting from appropriate classification than fact there can be no finality or certainty with respect to tariff classification until such time as limitation period has expired--Fact other components of functional unit individually classified elsewhere and that some components remain eligible for reclassification under correct item not creating dual classification for those goods--As long as time period within which goods may be reclassified has not expired, Parliament's intent best respected by giving those goods classification most appropriate in fact and in law-- Customs Act, R.S.C., 1985 (2nd Supp.), c. 1--Customs Tariff, R.S.C., 1985 (3rd Supp.), c. 41.