I to the Customs Tariff only applies to reels which are imported separately. The goods in issue are an assemblage of parts which, together, constitute a mechanical device. According to the representative, the goods in issue are not vehicles and, as such, should not be classified in heading No. 87.16. The representative also referred to Supplementary Note 1 to Section XVI in support of his argument. Counsel for the respondent argued that the onus is on the appellant to show that the respondent has incorrectly classified the goods in issue.
Goods are to be classified as they present themselves at the time of importation into Canada.
As such, they are properly classified in heading No. 87.16, as they are equipped with one or more wheels and designed for the transportation of goods in accordance with a general explanatory note to that heading. According to counsel, the goods in issue are not sufficiently mechanical to be considered machines. In her view, a manual force is not mechanical. When classifying goods in Schedule I to the Customs Tariff , the application of Rule 1 of the General Rules is of the utmost importance. This Rule states that classification is first determined according to the terms of the headings and any relative Chapter Notes.