2 August 2000 GST/HST Ruling 25847 - Tax Status of

Dear XXXXX

This is in reference to your letter of December 7, 1999, in which you request a ruling, on behalf of your client "XXXXX", concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the product named XXXXX[.]

Statement of Facts

Our understanding of the facts is as follows:

-    XXXXX is importing a product named XXXXX from XXXXX[;]

-    In 1999, XXXXX imported a shipment and XXXXX attempted to apply the basic grocery GST exempt code 59 on the importation documents. The entry was rejected because according to CADEX, the exempt code 59 did not correlate with the tariff classification number 2302.30.10.00. Soon after, XXXXX filed for a National Customs Ruling to be sure that the tariff classification number was correct;

-    In December 1999, XXXXX received a National Customs Ruling confirming the classification of XXXXX under tariff classification number 2302.30.10.00, i.e. under Chapter 23 (Residues and waste from food industries; prepared animal fodder) of the Customs Tariff;

-    According to the Explanatory Notes on Harmonized System, the main use of the products under Chapter 23 is as animal feeding stuffs, either alone or mixed with other materials, although some of them are fit for human consumption[;]

-    The characteristics of the product are as follows:

-    XXXXX is made from 100% wheat bran;

-    It is used for breading fish and poultry and may also be used as an ingredient in food preparation;

-    It comes in a 454 gr.(which is not indicated on the label) package and is intended to be sold mainly to Lebanese grocery stores;

-    The information provided on the label is: XXXXX Name, address and phone number of XXXXX; XXXXX; and XXXXX[.]

Ruling Requested

You have requested an application ruling on the GST/HST tax status of XXXXX XXXXX[.]

Ruling Given

Based on the facts set out above, we rule that supply of XXXXX is zero-rated under Section 1 of Part III of Schedule VI to the Excise Tax Act.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to our interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-9585.

Yours truly,

Roger Tessier CA
Goods Unit, General Operation & Borders Issues Division
Excise and GST/HST Rulings Directorate