Appeal Nos. AP-2001-007 to AP-2001-010

November 12, 2002

12 November 2002

Appeal Nos. AP-2001-007 to AP-2001-010

These are appeals pursuant to subsection 67(1) of the Customs Act from decisions rendered by the Commissioner of the Canada Customs and Revenue Agency pursuant to subsection 60(4) of the Customs Act. The issue in these appeals is whether the integrated receivers/decoders (IRDs) in issue are properly classified under tariff item No. 8528.12.99 as other colour reception apparatus for television, as determined by the respondent, or should be classified under tariff item No. 8529.90.90 as other parts suitable for use solely or principally with the apparatus of heading Nos. 85.25 to 85.28, as claimed by the appellant.

HELD:

The appeal is dismissed. All the criteria point to an IRD being a part of a satellite television reception system (STRS). The IRD is essential to the operation of the STRS. It is a necessary and integral component of the STRS. An STRS cannot function without it. The Tribunal also notes that the IRD is attached to the STRS by a coaxial cable and is sold along with the rest of the components that make up an STRS. Accordingly, the Tribunal finds that the goods
in issue are a part of STRSs.

In the Tribunal's view, the goods in issue constitute reception apparatus for television. The expert witness acknowledged that the IRD receives television signals. The Tribunal's view is also supported by the following definition of reception provided to the Tribunal by the appellant: "The conversion of modulated electromagnetic waves or electric signals, transmitted through the air or over wires or cables, into the original intelligence, or into desired useful information (as in radar), by means of antennas and electronic equipment." Indeed, the IRD converts, by means of electronic equipment, modulated electric signals transmitted over wires into signals that can be displayed on a television set.

While it is true that the IRD cannot receive satellite television signals transmitted by a satellite without the dish antenna and the low-noise block converter with feed (LNBF), the IRD can receive television signals transmitted by the LNBF. This suffices for the IRD to constitute a reception apparatus for television. There is no requirement that a machine be capable of receiving satellite television signals to be classified in heading No. 85.28 as a reception apparatus for television.

The Tribunal's analysis is consistent with the Explanatory Notes to the Harmonized Commodity Description and Coding System and the relevant classification opinion that classify receivers of satellite television broadcasts in heading No. 85.28.

This document is available on the CITT web site, at the following address:

http://www.citt-tcce.gc.ca/appeals/Decision/ap2b007e/ap2b007e.htm


Topic(s): 
Acts, Regulations, Policies & Decisions / Customs Act / Post Entry / Appeals (Recourse & CITT)
Information Source: 
Canadian International Trade Tribunal (CITT)
Document Type: 
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