Finally, a ruling on Power PEZ: is it a candy or a toy??

With respect to the Power PEZ, these goods again cannot be classified solely on the basis of Rule 1 of the General Rules. Rule 3 (b) is the one to which the Tribunal is directed, given that the blister card contains the motorized candy dispenser, which could be classified as a toy, and the two packages of candy, which could be classified as confectionery. It is the Tribunal’s opinion that, for purposes of classification, novelty packaging is not usually determinative; however, as in the case of the Power PEZ, the novelty is so extensive that it actually transforms the essential character of the product. The play value of the Power PEZ predominates over the candy. It is designed to be played with prior to the candy being eaten and even prior to opening the package. Furthermore, the play value is also durable, as evidenced by the fact that the Power PEZ dispenser has a replaceable battery and is a collectible. The Tribunal, therefore, agrees with the appellant, given the fact that the play value of the Power PEZ not only endures, but precedes any eating of the candy. As a result, the Power PEZ should be classified as other toys, other than of metal, incorporating a motor under tariff item No. 9503.80.90.

— Canadian International Trade Tribunal REGAL CONFECTIONS INC. v. THE DEPUTY MINISTER OF NATIONAL REVENUE. Appeal Nos. AP-98-043, AP-98-044 and AP-98-051 (1999).