Build-a-Bear Workshop UK Holdings Limited v The Commissioners for HMRC

Build-a-Bear Workshop UK Holdings Limited v The Commissioners for HMRC

Note 3 to Chapter 95 applies generically at heading level to import into heading 9503 those parts and accessories suitable for use solely or principally with articles in the heading. At subheading level, Note 3 is disapplied from the Dolls Subheading by context (GIR 6), but applies to the Toys Subheading. The FTT's factual finding that the items are principally suitable for use with BAB Bears means they are classified under the Toys Subheading, attracting customs duty.

Parties
Appellant: Build-A-Bear Workshop UK Holdings Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
21 June 2022
Procedural Posture
Civil Appeal / Appeal From Upper Tribunal (tax and Chancery Chamber) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Customs Duty Classification, Interpretation of Combined Nomenclature, Application of Chapter Notes and General Rules of Interpretation, Tariff Classification of Toy Accessories
Tax Law Customs Law European Union Law Customs Duty Classification Interpretation of Combined Nomenclature Application of Chapter Notes and General Rules of Interpretation Tariff Classification of Toy Accessories

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Parties

Build-A-Bear Workshop UK Holdings Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Civil Appeal / Appeal From Upper Tribunal (tax and Chancery Chamber) to Court of Appeal

Legal Issues

  1. 1 How Note 3 to Chapter 95 of the Combined Nomenclature applies to the classification of accessories for stuffed toys and dolls for customs duty purposes
  2. 2 Whether Note 3 is to be applied at heading or subheading level and its interaction with the Dolls Subheading
  3. 3 Whether the context requires Note 3 to be disapplied at subheading level under GIR 6

Ratio Decidendi

Note 3 to Chapter 95 applies generically at heading level to import into heading 9503 those parts and accessories suitable for use solely or principally with articles in the heading. At subheading level, Note 3 is disapplied from the Dolls Subheading by context (GIR 6), but applies to the Toys Subheading. The FTT's factual finding that the items are principally suitable for use with BAB Bears means they are classified under the Toys Subheading, attracting customs duty.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • Permission to appeal on ground 4 (footwear) is refused.