Hearing on Tariff Classification of Supplements

Summary#

This Canada Gazette entry announces upcoming public hearings by the Canadian International Trade Tribunal about how certain dietary supplement products should be classified for customs purposes. The hearings in the appeals by Atrium Innovations Inc. against the President of the Canada Border Services Agency are set for May 9 and 10, 2023. The notice also lists recent, abridged administrative decisions from the Canadian Radio-television and Telecommunications Commission (CRTC) dated in late March 2023.

What it does#

• Announces that the Canadian International Trade Tribunal will hold videoconference hearings on two appeals (AP-2021-032 and AP-2022-026) about tariff classification under the Customs Act.
  • Goods in question include essential fatty acid products (fish- or vegan-derived), ashwagandha root extract products, and coenzyme Q10 (CoQ10) products, each in measured doses.
  • The key issue is whether these goods should be treated as “medicaments” under tariff item No. 3004.50.00 / 3004.90.00 (position advanced by Atrium Innovations Inc.) or as “miscellaneous edible preparations” under tariff item No. 2106.90.99 (position advanced by the President of the Canada Border Services Agency).
  • Hearings will be by videoconference; the notice gives a phone number and email for people who want to attend.
• Publishes abridged administrative decisions and a list of CRTC decisions (applicants and dates). These include entries for broadcasters such as the Canadian Broadcasting Corporation and others with decision dates between March 22 and March 27, 2023.

Who's affected#

• Importers, distributors and retailers of the specific supplements named (omega/essential fatty acids, ashwagandha, CoQ10).
• Customs brokers and businesses that pay duties or classify imported goods.
• The Canada Border Services Agency and parties that bring or defend customs appeals.
• Broadcasters, cable distributors and radio stations named in the CRTC listings (for example, the Canadian Broadcasting Corporation, Sonème (2007) inc., and others).
• Consumers may be indirectly affected if classification changes change costs or how products are regulated.

Why it matters#

• Tariff classification determines how much duty an importer pays and can affect whether a product is treated as a drug/medicament (which can trigger different rules) or as a food/preparation. A Tribunal ruling could change costs and regulatory steps for these products going forward.
• The Tribunal’s decision about its own jurisdiction could also set a precedent for how similar supplement imports are handled in future.
• The CRTC listings show recent licence and administrative decisions that may affect local radio operations and what programming is available to listeners.