Arctic Cat Sales Inc. v. Canada (Canada Border Services Agency)

Arctic Cat Sales Inc. v. Canada (Canada Border Services Agency) Court (s) Database Federal Court of Appeal Decisions Date 2007-09-05 Neutral citation 2007 FCA 277 File numbers A-166-06 Decision Content Date: 20070905 Docket: A-166-06 Citation: 2007 FCA 277 CORAM: LÉTOURNEAU J.A. PELLETIER J.A. RYER J.A. BETWEEN: ARCTIC CAT SALES INC. Appellant and PRESIDENT OF THE CANADA BORDER SRVICES AGENCY Respondent Heard at Ottawa, Ontario, on September 5, 2007. Judgment delivered from the Bench at Ottawa, Ontario, on September 5, 2007. REASONS FOR JUDGMENT OF THE COURT BY: PELLETIER J.A. Date: 20070905 Docket: A-166-06 Citation: 2007 FCA 277 CORAM: LÉTOURNEAU J.A. PELLETIER J.A. RYER J.A. BETWEEN: ARCTIC CAT SALES INC. Appellant and PRESIDENT OF THE CANADA BORDER SRVICES AGENCY Respondent REASONS FOR JUDGMENT OF THE COURT (Delivered from the Bench at Ottawa, Ontario, on September 5, 2007) PELLETIER J.A. [1] Notwithstanding Mr. Meehan's vigorous argument, we are of the view that this appeal should be dismissed. [2] In Suzuki Canada Inc. v. Canada (Customs and Revenue Agency), 2004 FCA 131, [2004] F.C.J. No. 615 (Suzuki), this Court decided that the CITT erred in classifying all-terrain vehicles (quad bikes) without regard to the Explanatory Notes to the Harmonized Commodity Description and Coding System (Harmonized System). The Court held that while the Explanatory Notes were not binding, they should be given effect unless there exists a good reason for not doing so. When regard is had to the Explanatory Notes, the inescapable conclusion is that all-terrain vehicles are to be classified under tariff heading 87.03. [3] The appellant argues that this Court should depart from Suzuki on the ground that the decision was based on the agreement of counsel that Rule 1 of the General Rules was determinative, an agreement which is absent here. [4] We are not persuaded that the agreement in question was the basis of the decision, having regard to the decision as a whole. That said, we are satisfied that the decision in Suzuki is correct, as is the CITT's decision under review. The predictability of the law as well as the need for consistency in the application of the Harmonized System are both advanced by such a finding. [5] In the result, the appeal will be dismissed with costs. "J.D. Denis Pelletier" J.A. FEDERAL COURT OF APPEAL NAMES OF COUNSEL AND SOLICITORS OF RECORD DOCKET: A-166-06 STYLE OF CAUSE: ARCTIC CAT SALES INC. v. PRESIDENT OF THE CANADA BORDER SERVICES AGENCY PLACE OF HEARING: Ottawa, Ontario DATE OF HEARING: September 5, 2007 REASONS FOR JUDGMENT OF THE COURT BY: LETOURNEAU, PELLETIER, RYER, JJ.A. DELIVERED FROM THE BENCH BY: PELLETIER J.A. APPEARANCES: Eugene Meehan, Q.C. Marie-France Major J. Peter Jorosz Jeffrey Beedell FOR THE APPELLANT Michael Roach FOR THE RESPONDENT SOLICITORS OF RECORD: Lang Michener LLP Ottawa, Ontario FOR THE APPELLANT John H. Sims, Q.C. Deputy Attorney General of Canada Ottawa, Ontario FOR THE RESPONDENT