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,Canada Bordergence des servicesSe rv ices Agency frontaliers du CanadaPROTECTED BCase No. 11414November 20, 2012PRIORITY POST

a-- I,iu.115 Gordon Baker Rd ,Toronto, Ont. M2H 3R6DearSubjec : Trade Com pliance Verification F inal Report T ariff ClassificationThis is the final report for the Trade Compliance Verificatio o elected transactions on goods importedby Sony of Canada Ltd.Business Numbor the verification period of Ap ril 01;2011 to M arch 31, 2012. The verification was conducted by the Canada B order Services Agency(CBS A) und er the authority of sections 42 and 42.01 of the Customs Ac t .The ob jective of this verification was to promote and e nsure compliance with customs accountingobligations as they relate to the CB SA 's Tariff Cl as sification Program, specifically with regard to TariffItem 9948.00.00 for certain goods of Heading 85.28.The com ments received regarding the Trade Co mpliance Verification interim report that was sent toSony of Canada Ltd. on October 10, 2012 have been reviewed, how ever, there were no ch an ges to theoriginal decisions.Based on the information that was made available to the CB SA, all of the goods were found to beclassified incorrectly. Decisions have been made and can be found in the "R esults of the Verification"po rt ion of this report. In addition, Detailed A djustment Statements (DA Ss) have been issued to correctthe tran sactions in error for the samples verified an d have been listed in the "Adjustment Summ ary"chart .These tariff classification re-determinations w ill affect not only the transactions verified but also anyother goods that have been accounted unde r tariff item 9948.00.00 an d for w hich no certificate or o therrecord signed by the user of the comm ercial goods are available.RequirementsUnd er section 32.2 of the C us t om s A c t , importers have an obligation to m ake a correction to adeclaration of origin, tariff classification, or value for duty within 90 days after the importer has reasonto believe that the original declaration is incorrect, Importers have reason to believe w hen specificinformation is available respecting the correct accounting of the go ods. The obligation un der this sectionto make a correction ends four years after the goods are accounted for under subsection 32(1), (3) or (5).

Canad a

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The period over w hich you will be required to make corrections to incorrect declarations will bedetermined o n the basis of the Reassessment Policy.Refer to Memorandum D 11-6-10, Reassessment Policy, which can be found on the CBSA website at:http://www. cbsa-asfc .gc.ca/publications/dm-mcVdl 1/di 1-6-10-eng.htm1.Failure to make the req uired corrections within 90 days will result in adm inistrative monetary pen al tiesbeirg,applied. For details respecting the Adm inistrative Mo netary Penal ty System (AM PS), refer to theCBSA vt site at: http://www.cbsa-asfc.gc.ca/trade- commerce/amps/menu-eng.html.As per section 32.2(5) of the Customs Act , this obligation does not apply to corrections that result in arefund of duties. Sony of C anada Ltd. may apply for refunds under the authority of section 74 of theCustoms Ac t .Results of the VerificationFinding"; Requirements and Corrective Actions

The following provides the results of the T rade Co mpliance Verification of the tariff cl assificationprogram and a desc ri ption of the errors fund, along withiquirements and corrective ac tions.Enclosed is the tariff classification program sheet listing all the transactions verified. Where the PartialLine Indicator "PLI" column (the 5` h column) displays a "Y", it is an indication that only a portion ofthe corresponding sample B3 line was review ed during this verification. Therefore, for consistency,when m ore than one product was identified on the B3 line selected, the comm erci al invoice line with thehighest value was selected as the sample for this verification.In accordance with Section 3 of the Imported Goods R ecords Regulations:A person who imports or causes to be imported commerci al goods that have been released free of duty orat a reduced rate of duty because of their intended use or because they w ere intended to be u sed by aspecific person shall keep, for the same period of time (six years following the importation) referred to inthat section,(a ) a certificate or other record signed by the user of the com mercial goods that shows the user's name,address and occupa tion an d indicates the actual use made of the comm ercial goods; or(b ) in the case where the com mercial goods have been d iverted to a use other than that on the basis ofwhich they w ere released free of duty or at a reduced rate of duty or have been sold or otherwisedisposed of to a person n ot entitled to have the com mercial goods so released, records that containinformation sufficient to confirm that the full applicable duties have been paid.Sample 1 40 inch LCD TV 13X4Declared un der tariff cl as sification num ber 85 28.72.33.00 ; televisions are correctly classified un der tariffclassification num ber 852 8.7233,00, in accordance with G eneral Interpretive R ule 1 o f the Custom sTariff.

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6845211901343868452119013939

000010035142350000100351431~ l

68452119014598 00001003514326168452119014053 000010035143481 .68452119017853 00001003533221

Bold lines indicate B3 partial lines

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Sample 2, 60 inch LCD TV EX 7Declared u nder tariff classi fication num ber 8528.72 .33.00; televisions are correctly classified underclassification numbe r 8528.72.33.00, in accordance with G eneral Interpretive Rule 1 of the Custom sTariff.Sample 3, 46, 55, and 60 inch LCD TV SE R, EXR , EX7Declared u nder tariff classification num ber 85 28.7233.00; televisions are correctly classified und er tariffclassificati on num ber 8528.72.33.00, in accordance with General Interpretive Rule 1 of the Cu stomsTariff.Sample 4, 32 and 40 inch LCD T V B X3, BX4Declared und er tariff classification num ber 852 8.72.33.00; televisions are correctly classified under tariffclassification number 8528.72.33.00, in accordance with G eneral Interpretive Rule 1 of the C ustomsTariff.Sample 5, 40 inch LCD TV BX4Declared u nder tariff classification num ber 85 28.72.33.00; televisions a re correctly classified under tariffclassification num ber 8528.72.33.00, in accordance with G eneral Interpretive Ru le 1 of the CustomsTariff.Tariff Item 99 48.00.00End use certificates or other records signed by the user of the comm ercial goods have n ot been prov idedfor the goods of the 5 sampled B 3 transaction lines verified. The provisions of tariff item 9948 .00.00have not been met and therefore, the provisions of tariff Item 9 948.00 .00 are no t applicable.Refer to Customs M emorandum D1 1-8-5 (End-Use Program) and D 17-1-21 (M ainten ance of Records inCanada by Im porters), found on the CBSA website at:http://ebsa-asfc.gc.ca/publications/dm-md/dl 1 /d 11-8-5-eng.pdfhttp://cbsa-asfc.gc.ca/publications/dm-m.d/dl 7/d17-1-21-eng.pdf

Adjustment Summ ary

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*Lines ind icated with an asterisk indicate a refund of dutiesThe C BSA 's re-determinations and this final report provide Sony of C anada Ltd. with specificinformation (reason to believe) concerning the tariff classification o f the go ods verified.Sony o f Canada L td. is required to correct, within 90 days from the date of this final report, all othertransactions of the good s verified. Corrections a re also required for other m odels of the goods v erified,and any other goods that have the sam e function as the goods verified that differ in a m anner (e.g., size,colour, capacity, etc.) that is not relevant to the tariff classification of the goods at the tariff item level, aswell as for any other goods that have been accounted for under tariff item 9948.00.00 and for which nocertificate or other record signed by the user of the com mercial goods are available.The corrections are required for transactions accounted for during the verification period, and forward upto the date of the final report, April 1, 2011 to No vemb er 20, 2012, and all subsequent im portations ofthe same goods.Corrections are required w hether or not there is a financial impact.The o bligation to correct does no t apply to corrections that result in a refund of duties; however, thecorrect tariff cl as sification of the goods m ust be applied to all future importations of the goods based o nthe specific information contained in this final report.All self-adjustments (Form B2) m ust be sent by registered mail, by courier or delivered by hand to myattention at the address below. In the rem arks section of the adjustment m ake reference toCase No. 11414.All subsequent im portations of these goods are to be accounted for in accordance with the specificinformation that is the basis of these decisions.The ob ligation to correct does no t apply to corrections that result in a refund of duties; however, thecorrect tariff classification of the goods must be applied to all futu re importations of the goods based onthe specific information contained in this final repo rt .Appeals and RedressAppeal rights are available under the C u s t o m s A c t , should you disagree with any of the decisionsresulting from this verification. Yo u m ay file a request for a further re-determ ination under section 60 o fthe Act , within 90 days from the date of the DAS. Refer to Memorandum D11-6-7, Importers' DisputeResolution Process for O rigin, Tariff Classification, and Value for Duty o f Imported G oods, which canbe found on the CBSA website at:http://www.cbsa-asfc.gc.ca/publications/dm-md/dllkill -6-7-eng.html.Clients wishing to appeal a No ti ce of Penalty Assessment (NP A) m ay request a Minister's decisionpursuant to section 131 of the C u s t o m s A c t within 90 days from the date of the NPA, provided theymeet the criteria of subsection 129(1) of the C u s t o m s A c t . Additional information concerning the redressprocess for AMPS can be found on the CBSA website at:

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http://www.cbsa-asfc.ge.ca/recourse-recours/menu-eng.html an dhttp://www.cbsa-asfe.gc.ea/recourse-recours/sp-ss-eng.htralMonitoringThe errors identified in this report will be m onitored at a later date for com pliance.Additional InformationFor information on the importance o f trade com pliance, trade data and accurate tariff classification, v isitthe CBSA website at:http://www.cbsa-asfe.gc.ca/publications/pub/bsf5108-eng.html#s2http://www.cbsa.gc.ca/publ ications/pub/bsf5118-en .htmlThank you for the cooperation that Sony of Canada Ltd. extended to the CBSA during the course of thisverification. Please contact me should yo u require additional information co ncerning this report.Please contact your regional CBSA Client Services office at 519-967- 4140. if you have any questionsconcerning the self-adjustment process.

Brian PhillipsSenior Officer Trade ComplianceTrade O perations D ivisionCanada Bo rder Services Agency2500 O uellette Av e.W indsor, Ontario N9A 7K3Telephone: 519-967-418 5Facsimile: 519-967 -4138E- mail address: brian.phillips@cb sa-asfc.ge.caEnclosure: T ariff Classification Program Sheet(s)

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