RJS Electronics Ltd v Revenue and Customs (CUSTOMS DUTY : Classification - nomenclature) [2016] UKFTT 77 (TC) (10 February 2016)

RJS Electronics Ltd v Revenue and Customs (CUSTOMS DUTY : Classification - nomenclature) [2016] UKFTT 77 (TC) (10 February 2016)

The switches in question are 'electromechanical snap-action switches' because they combine electrical and mechanical action (as per the ordinary and industry meaning of 'electromechanical'), operate with a spring mechanism producing a snap-action, and are for a current not exceeding 11A. This classification is more specific than 'push button switches' under the Combined Nomenclature. Therefore, under GIR 3(a), the correct classification is under code 8536-50-07 (or 35000), attracting 0% duty.

Citation
[2016] UKFTT 77
Parties
Appellant: RJS Electronics Limited; Respondent: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
10 February 2016
Procedural Posture
Customs Duty Classification Appeal / First Tier Tribunal (tax Chamber) Final Decision
Outcome
appeal allowed
Legal Topics
Commodity Code Classification, Interpretation of Combined Nomenclature, Application of General Rules for Interpretation (gir), Burden of Proof in Customs Appeals
Customs Law Tax Law European Union Law Commodity Code Classification Interpretation of Combined Nomenclature Application of General Rules for Interpretation (gir) Burden of Proof in Customs Appeals

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Parties

RJS Electronics Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondent

Procedural Posture

Customs Duty Classification Appeal / First Tier Tribunal (tax Chamber) Final Decision

Legal Issues

  1. 1 Whether the switches are properly classified as 'electromechanical snap-action switches' under code 8536-50-07 or as 'push button switches' under code 8536-50-11
  2. 2 Interpretation of 'electromechanical' and 'snap-action' in the context of customs classification
  3. 3 Application of General Rules for Interpretation (GIR) to determine the correct commodity code

Ratio Decidendi

The switches in question are 'electromechanical snap-action switches' because they combine electrical and mechanical action (as per the ordinary and industry meaning of 'electromechanical'), operate with a spring mechanism producing a snap-action, and are for a current not exceeding 11A. This classification is more specific than 'push button switches' under the Combined Nomenclature. Therefore, under GIR 3(a), the correct classification is under code 8536-50-07 (or 35000), attracting 0% duty.

Court Disposition

appeal allowed

Orders

  • HMRC's classification decision is quashed and replaced with classification of the switches under code 8536-50-07 (or 35000) as 'electromechanical snap-action switches for a current not exceeding 11A'.