Fascination Wigs (Pty) Ltd v Commissioner for the South African Revenue Services (26368/2007) [2008] ZAGPHC 287; 71 SATC 72 (26 September 2008)

Fascination Wigs (Pty) Ltd v Commissioner for the South African Revenue Services (26368/2007) [2008] ZAGPHC 287; 71 SATC 72 (26 September 2008)

The court found that the synthetic braids and wefts imported by the applicant are not final, ready-to-wear products, but components that require further work by braiders or weaving experts before they can be used as wigs or wig-like articles. The evidence, including expert testimony and photographic material, demonstrated that these goods are not 'made-up articles of postiche' as intended by tariff heading 67.04, but are 'other textile materials, prepared for use in making wigs or the like' as described in heading 67.03. The court rejected the respondent's argument that the goods are complete articles of postiche, noting that they cannot be used in isolation and must be integrated into...

Citation
[2008] ZAGPHC 287
Parties
Applicant: Fascination Wigs (Pty) Ltd; Respondent: Commissioner for the South African Revenue Services
Court
High Courts - Gauteng
Jurisdiction
South Africa
Judgment Date
26 September 2008
Case Number
26368/2007
Procedural Posture
Civil Appeal / Appeal Against Tariff Determination Under Customs and Excise Act
Outcome
Appeal upheld. The applicant's imported products are classifiable under tariff heading 67.03. The respondent's determinations under heading 67.04 are amended accordingly. Costs awarded to the applicant, including costs of two counsel.
Judges
Prinsloo
Legal Topics
Customs and Excise Duties, Tariff Classification, Harmonised System Interpretation, Schedule 1 Customs and Excise Act
Tax Law Commercial and Corporate Customs and Excise Duties Tariff Classification Harmonised System Interpretation Schedule 1 Customs and Excise Act

Case Brief

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Parties

Fascination Wigs (Pty) Ltd

Applicant

Commissioner for the South African Revenue Services

Respondent

Procedural Posture

Civil Appeal / Appeal Against Tariff Determination Under Customs and Excise Act

Legal Issues

  1. 1 Whether the synthetic braids and wefts imported by the applicant are classifiable under tariff heading 67.03 or 67.04 of Schedule 1 to the Customs and Excise Act.
  2. 2 Whether the goods constitute 'made-up articles of postiche' or are 'prepared for use in making wigs or the like'.
  3. 3 Whether the respondent's determinations under subheading 6704.19 were correct in law.

Ratio Decidendi

The court found that the synthetic braids and wefts imported by the applicant are not final, ready-to-wear products, but components that require further work by braiders or weaving experts before they can be used as wigs or wig-like articles. The evidence, including expert testimony and photographic material, demonstrated that these goods are not 'made-up articles of postiche' as intended by tariff heading 67.04, but are 'other textile materials, prepared for use in making wigs or the like' as described in heading 67.03. The court rejected the respondent's argument that the goods are complete articles of postiche, noting that they cannot be used in isolation and must be integrated into...

Court Disposition

Appeal upheld. The applicant's imported products are classifiable under tariff heading 67.03. The respondent's determinations under heading 67.04 are amended accordingly. Costs awarded to the applicant, including costs of two counsel.

Orders

  • The products listed in annexure 'B' to the notice of motion, as imported by the applicant, are declared to fall under tariff heading 67.03 of Part 1 of Schedule 1 to the Customs and Excise Act 91 of 1964.
  • The determinations of the respondent that the products listed in annexure 'B' to the notice of motion are classifiable within tariff heading 67.04 under subheading 6704.19 of Part 1 of Schedule 1 to the said Act are amended in accordance with paragraph 1 above.