Digests

Canada (Commissioner for Customs and Revenue Agency) v. GL&V/Black Clawson-Kennedy Pulp and Paper Machine Group Inc.

A-806-00

2002 FCA 43, Evans J.A.

30/1/02

7 pp.

Appeal from decision of Canadian International Trade Tribunal (CITT) imported goods should be classified under tariff item 8439.99.90 as "other parts of machinery for making pulp of fibrous cellulosic material" rather than under tariff item 7610.90.00 as "other aluminum structures"--Appellant must establish CITT's decision unreasonable--When applying this standard, Court should ask itself whether decision under review supported by any reasons that stand up to somewhat probing examination--Goods in question aluminum walkway systems, comprising stairs, ladders, walkways with handrails --Specifically designed to be attached to paper-making machine with accompanying brackets, bolts--Shipped unassembled--On arrival in Canada, respondent assembled, tested them before shipping them dissembled to client-- Finally goods permanently attached to client's paper-making machine--Each aluminum walkway designed for particular machine to which to be attached and has no other use; "integrated and designed as unit" with machine--Walkways essential for adjusting, servicing paper-making machines and production impossible without them--Appeal dismissed-- Appellant submitting CITT not complying with General Rules for Interpretation of the Harmonized System, which govern interpretation of tariff: CITT could only consider if goods parts of paper-making machine after concluded could not be classified as "other aluminum structures"--Read as whole, reasons clearly indicating CITT decided goods not structure before determined properly classified as parts of paper-making machine--Appellant submitting CITT's conclusion unreasonable because basis of conclusion that neither explanatory notes relevant to tariff heading 7610 nor accompanying examples contain "notion of machinery or equipment"--But CITT only emphasizing goods in question distinguishable from examples giveN of aluminium structures because designed to be used in connection with, and essential component of, machinery, not that themselves machinery-- Nothing unreasonable in this conclusion--Since aluminum walkway system specifically designed to be attached permanently to paper-making machine so that machine could function effectively, CITT not breaching principle goods must be classified as of time of importation--Appellant submitted unreasonable to conclude goods part of paper-making machine--As goods physically, permanently attached to machine not unreasonable to ask whether walkway part of machine by considering whether essential to its operation-- Also not unreasonable to conclude walkway essential to operation of machine, even though machine would function mechanically without it--Since walkways essential to enable adjustments, servicing which became necessary as machine ran, not unreasonable to conclude essential to operation of machine--CITT's decision not unreasonable in light of fact that each system designed to be used with particular machine and has no other purpose, removed only for purpose of repair and necessary for functional operation of machine--CITT's decision not inconsistent with "committed by design" test employed in other cases--Whether goods part of whole for CITT to decide on case-by-case basis--Customs Tariff, S.C. 1997, c. 36, items 7610.90.00, 8439.99.90