CUSTOMS AND EXCISE |
Customs Tariff |
Sandvik Tamrock Canada Ltd. v. Deputy M.N.R., Customs and Excise
A-550-00
2001 FCA 340, Noël J.A.
9/11/01
11 pp.
Appeal from decision of Canadian International Trade Tribunal (CITT) certain goods imported by appellants did not qualify for benefits of tariff item No. 9908.00.00 in Sch. I to Customs Tariff--Tariff item No. 9908.00.00 providing for duty-free entry of certain goods used in mining industry--Articles in issue drill rods used in percusssive drilling to transmit percussive energy to host rock, provide rotation to drill bit, transmit feed pressure to keep bit constantly on bottom of hole and transmit flushing medium to bottom of drill hole--Bulk of mining operations in Canada hard-rock mining--Percussive drilling method primary drilling method used for that purpose--Reasoning of CITT for excluding articles in issue from ambit of tariff item No. 9908.00.00 clearly wrong, could not withstand type of scrutiny which "reasonableness simpliciter" standard of review calls for--Amongst categories identified by CITT in reasons, fifth category refers to machinery used "directly from the working face of a mine"--In order to come within that category, machinery must be put to that specified use--Drilling machinery in issue met requirement--Wording of tariff item 9908.00.00 not allowing for conclusion reached by CITT--Word "machinery" in contrast with word "machine" means collectivity of machines, rather than single one--Word "machinery" in tariff item No. 9908.00.00 cannot be construed as referring to single machine--Not open to CITT to hold "Continuous Miner" only kind of machine which qualified--CITT erred in holding drilling machinery in issue fell outside ambit of tariff item on basis term "extracting machinery" excluded any extracting machinery which did not function same way as "Continuous Miner"--Appeal allowed--Customs Tariff, R.S.C., 1985 (3rd Supp.), c. 41, Sch. I, tariff item No. 9908.00.00.