Tariff on Rocksmith video game guitar strikes wrong chord with Ubisoft Canada

By Matthew Braga, National Post News...

A tariff on guitars bundled with the video game Rocksmith is striking the wrong chord with Ubisoft Canada Inc.

The software developer, which has studios in Montreal, Toronto, and other cities worldwide, is appealing a decision by the Canada Border Services Agency (CBSA) to classify guitars bundled with copies of its instructional video game Rocksmith as musical instruments.

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While the guitars — Les Paul Junior models, manufactured by Epiphone — are indeed real musical instruments, Ubisoft’s argument is that because the guitars are bundled and sold with video game software, they are eligible for alternate classification under “tariff item No. 9948.”

The said tarriff allows “articles for use in video games used with a television receiver, and other electronic games” to be sold duty free. Imported musical instruments and accessories, however, are typically subject to a 6% fee under tariff rules.

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