Tariff Classification Assignment 02

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Loyalist College *

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3000

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Mechanical Engineering

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Feb 20, 2024

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Take a product of your choice and assign the proper HSC /Tariff Classification Assignment Title Student Name: Paramjeet Singh Student ID: 500234698 Course Code: LOGS3000 Instructor Name: Harmeet Kohli By submitting this assignment, you confirm that you alone have contributed to this submission. Any suspicion of copying or plagiarism in this work will result in an investigation of Academic Misconduct and may result in a “0” on the work, an “0" in the course, or possibly more severe penalties as well as a Disciplinary Notice on your academic record under the Student Code of Academic Conduct, which can be found online at: https://www.loyalistcollege.com/about- loyalist/policies/aop-216-academic-honesty/
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Priority tariffs on goods entering Canada from countries with whom the country has a free trade agreement are detailed in the Canadian Customs Tariff. That is subject to the standardized commodity coding and description system put in place by the World Customs Organization. Customs duty is implied by tariff. There are a total of 99 chapters that make up the system.  Custom tariff: All items that enter a nation must pay a customs charge. Custom Tariff Schedule: The printed Customs Tariff Schedule details the various customs taxes that are applied to products upon their arrival in a nation. Tariff Classification: Goods are sorted into numbered categories in a country's customs tariff schedule according to their tariff classification. All items are characterized using a 10-digit code that is further subdivided into the following under the Harmonized System: Chapter Heading Sub-heading Statistical suffix Using the General Rules for Interpretation and the Harmonized Commodity Description and Coding System, tariff classification is established. The official nomenclature for the categorization of commodities that are traded across borders is maintained by the World Customs Organization (Head Quarters: Brussels, Belgium) . It goes by several names: HS codes, tariff codes, tariff classifications, HS classifications, and Harmonized Tariff Schedule codes. This universally adopted methodology enables customs authorities to identify traded items using a standardized method without knowing product descriptions of every item that a trader is carrying over a border. More than two hundred nations have produced their own local versions of tariff books based on the World Customs Organization’s Harmonized System nomenclature. What are six rules of classification? Harmonized System categorization is derived by following six main interpretation rules produced by the World Customs Organization. The first four rules should be continued in sequence. Rules five and six apply throughout the classification procedure. QUESTION 1 Take a product of your choice and assign the proper HSC / Tariff Classification. Product: Air conditioning machine
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QUESTION 2 Please provide the category, chapter and sections related to Tariff Classification. Tariff Classification Category Section Chapter 8415.81.10.11 Machinery and Mechanical Appliances XVI 84 Custom Tariff Schedule Tariff Item SS Description of Goods Unit of Measurement MFN Tariff Applicable preferential Tariffs 8415.81.10.1 1 00 Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated. NMB 6% AUT, NZT, CCCT, LDCT, GPT, UST, MXT, CIAT, CT, CRT, IT, NT, SLT, PT, COLT, JT, PAT, HNT, KRT, CEUT, UAT, CPTPT, UKT: Free Sl No# Country Name Tariff Treatments 1. AUT Australia Tariff 2. NZT New Zealand Tariff 3. CCCT Commonwealth Caribbean Countries Tariff 4. LDCT Least Developed Country Tariff 5. GPT General Preferential Tariff 6. UST NAFTA United States Tariff 7. CIAT Canada-Israel Agreement Tariff
8. CT Chile Tariff 9. CRT Costa Rica Tariff 10. NT Norway Tariff 11. SLT Switzerland-Liechtenstein Tariff 12. PT Peru Tariff 13. COLT Colombia Tariff The Harmonized System Structure CHAPTER HEADING SUBHEADING TARIFF ITEM COMMODITY 84 84.15 8415.81 8415.81.10 8415.81.10.11 84 CHAPTER -Machinery and Mechanical Appliances 84.15 HEADING -Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated. 8415.81 SUBHEADING -Incorporating a refrigerating unit and a valve for reversal of the cooling/heat cycle (reversible heat pumps). 8415.81.10 TARIFF ITEM -The following, excluding mini-split heat pumps and air conditioner units: Single packaged or split- system, of a heat transfer capacity not exceeding 15.8 kW (53,900 BTU per hour); Water source, vertical, horizontal and console types, of a heat transfer capacity not exceeding 34.8 kW (118,700 BTU per hour). 8415.81.10.11 COMMODITY - Heat capacity not exceeding 15.8 kW (53,900 BTU per hour).
QUESTION 3 Explain the Legal and Explanatory notes. Chapter - 84 Heading - Nuclear Reactors, Boilers, Machinery and Mechanical Appliances ; Parts Thereof 8415.81 Machines that can't manage the humidity independently are nevertheless considered air conditioners since they include a motor-driven fan and other components that change both the temperature and the humidity. • Various - Reversible heat pumps, which include a refrigeration unit and a valve to switch between heating and cooling, 8415.81.10 Air conditioning machines, having a motor-driven fans and devices for adjusting the temperature and humidity, including those machines in which the humidity cannot be individually managed. • Various - Reversible heat pumps, which include a refrigeration unit and a valve to switch between heating and cooling, - apart from air conditioners and mini-split heat pumps, the following Separate systems, or single-packaged units with a maximum heat transfer capacity of 15.8 kW (53,900 BTU/h); Vertical, horizontal, and console water sources with a maximum heat transfer capacity of 34.8 kW (118,700 BTU/h) 8415.81.10.11 Air conditioning machines, having a motor-driven fans and devices for adjusting the temperature and humidity, including those machines in which the humidity cannot be individually managed. • Various - Reversible heat pumps, which include a refrigeration unit and a valve to switch between heating and cooling, - With the exception of air conditioners and mini-split heat pumps, the following Types of water sources: vertical, horizontal, and console; Single-packaged or split-system; Heat transfer capacities: not to exceed 15.8 kW (53,900 BTU/h); Not to exceed 34.8 kW (118,700 BTU/h). - Packed in one unit: - With a maximum heat capacity of 15.8 kW (53,900 BTU/h)
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QUESTION 4 Explain the GRI rules associated with the goods, if applicable. 1. General Rules for the Interpretation 1: Applicable Reason: Titles of sections, Chapters and sub-Chapters are contributed It is vital to study the sections and chapters to know what sorts of items may be added or disallowed in the Chapter. By applying General Rules for the Interpretation 01 is something referred to as categorizing a product by name. Example: Air conditioning machine is titled under Machinery and Mechanical Appliances 2. General Rules for the Interpretation 2: Applicable This rule broken up into two parts GRI 2(a) and GRI 2(b). Reason GRI 2(a): It provides that incomplete, unassembled, or unfinished commodities that already contain the essential character of the final product, shall be categorized as that final product. Reason GRI 2(b): It implies that goods or mixes like motor-driven fan and devices for altering humidity should be categorized using GRI 3 Example: Air conditioning machines, having a motor-driven fan and devices for adjusting the temperature and humidity, including those machines in which the humidity cannot be individually managed. 3. General Rules for the Interpretation 3: GRI Rule of the Interpretation classified into three, GRI 3(a), GRI 3(b) and GRI(c) GRI 3(a) specifies that if at sight numerous Headings appear to apply to a product, the most precise Heading should be picked. GRI 3(b) specifies that mixes, sets and composite goods should be categorized according to a product’s essential nature.
GRI 3(c) is used for a composite product or combination where no one component provides that substance its fundamental character. Example: - Incorporating a refrigerating unit and a valve for reversal of the cooling/heat cycle (reversible heat pumps) Reference Website: (2021, November 24). Chapter 84: T2022—Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof . Canada.ca The official website of the Government of Canada. https://www.cbsa- asfc.gc.ca/trade-commerce/tariff- tarif/2022/html/00/ch84-eng.html