Chief Executive Officer of Customs v ICB Medical Distributors Pty Ltd [2008] FCAFC 127

Chief Executive Officer of Customs v ICB Medical Distributors Pty Ltd [2008] FCAFC 127

The Tribunal erred in law by construing "insoles" as excluding removable inner soles or inserts because they had an intended therapeutic or orthopaedic corrective function. Schedule 3 to the Customs Tariff Act 1995 (Cth), including Chapter 64 and Chapter 90 Note 6, contemplates that insoles may be designed to correct orthopaedic conditions. The goods were mass-produced and presented in pairs and were not designed to fit either foot equally, so they did not satisfy the criteria for special insoles qualifying as orthopaedic appliances under Note 6 to Chapter 90. They were correctly classified by the original decision-maker under subheading 6406.99.20, and remittal to the Tribunal was...

Jurisdiction
Australia
Judgment Date
17 July 2008
Procedural Posture
Appeal From a Single Judge of the Federal Court of Australia on an Appeal Under S 44 of the Administrative Appeals Tribunal Act 1975 (cth) Concerning Tariff Classification / Full Court Appeal
Outcome
Appeal allowed; Tribunal decision and orders at first instance set aside; original tariff classification restored.
Legal Topics
['tariff Classification' 'orthotic Inserts' 'orthopaedic Appliances' 'removable Insoles' 'statutory Construction' 'appeal From Administrative Appeals Tribunal']
['customs and Excise' 'administrative Law'] ['tariff Classification' 'orthotic Inserts' 'orthopaedic Appliances' 'removable Insoles' 'statutory Construction' 'appeal From Administrative Appeals Tribunal']

Case Brief

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Procedural Posture

Appeal From a Single Judge of the Federal Court of Australia on an Appeal Under S 44 of the Administrative Appeals Tribunal Act 1975 (cth) Concerning Tariff Classification / Full Court Appeal

Legal Issues

  1. 1 ['Whether patented orthotic inserts imported by ICB were classifiable under subheading 6406.99.20 of the Customs Tariff Act 1995 (Cth) or under heading 9021 as orthopaedic appliances.' 'Whether the Tribunal erred in law by construing the word "insoles" so that goods with a therapeutic or orthopaedic corrective purpose were not insoles.' 'Whether Note 6 to Chapter 90 limited when footwear and special insoles designed to correct orthopaedic conditions qualify as orthopaedic appliances.' 'Whether the matter should be remitted to the Administrative Appeals Tribunal or the original tariff classification restored.']

Ratio Decidendi

The Tribunal erred in law by construing "insoles" as excluding removable inner soles or inserts because they had an intended therapeutic or orthopaedic corrective function. Schedule 3 to the Customs Tariff Act 1995 (Cth), including Chapter 64 and Chapter 90 Note 6, contemplates that insoles may be designed to correct orthopaedic conditions. The goods were mass-produced and presented in pairs and were not designed to fit either foot equally, so they did not satisfy the criteria for special insoles qualifying as orthopaedic appliances under Note 6 to Chapter 90. They were correctly classified by the original decision-maker under subheading 6406.99.20, and remittal to the Tribunal was...

Court Disposition

Appeal allowed; Tribunal decision and orders at first instance set aside; original tariff classification restored.

Orders

  • ['The appeal be allowed.' 'The orders of 5 October 2007 be set aside.' 'The decision of the Administrative Appeals Tribunal of 9 March 2007 be set aside.' 'The decision of the appellant on application for Tariff Advice numbered 17234100 dated 27 June 2005 classifying the subject goods as within subheading 6406.99.20...