Star-images Enterprises Ltd v Revenue & Customs (Customs Duty - classification - dolls representing only human beings - toys representing animals or non-human creatures - other toys put up in sets - statuettes (of plastic) - appeal allowed in part) [2024] UKFTT 50 (TC) (22 December 2023)

Star-images Enterprises Ltd v Revenue & Customs (Customs Duty - classification - dolls representing only human beings - toys representing animals or non-human creatures - other toys put up in sets - statuettes (of plastic) - appeal allowed in part) [2024] UKFTT 50 (TC) (22 December 2023)

The Tribunal determined that the correct classification of each item must be based on its objective physical characteristics as observed, not on the fictional backstory or abilities. Where figures have clear non-human physical features, they are classified as 'toys representing animals or non-human creatures'; otherwise, as 'dolls representing only human beings' or other relevant codes. Accessories directly connected to the main figure do not make the package a set unless they are independent items. The appeal was allowed in part, with some items reclassified in the appellant's favour and others upheld as classified by HMRC.

Citation
[2024] UKFTT 50
Parties
Appellant: Star-Images Enterprises Ltd; Respondents: The Commissioners for HM Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
22 December 2023
Procedural Posture
Customs Duty Appeal / First Tier Tribunal (tax) Judgment
Outcome
Appeal allowed in part
Legal Topics
Customs Classification, Tariff Codes, Import VAT, Binding Tariff Information, Interpretation of Harmonized System, Accessory Vs Set Classification, Statutory Interpretation
Customs and Excise Tax Law European Union Law Customs Classification Tariff Codes Import VAT Binding Tariff Information Interpretation of Harmonized System +2 more

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Parties

Star-Images Enterprises Ltd

Appellant

The Commissioners for HM Revenue and Customs

Respondents

Procedural Posture

Customs Duty Appeal / First Tier Tribunal (tax) Judgment

Legal Issues

  1. 1 What is the correct customs classification for various imported toy figures and related items under the Combined Nomenclature?
  2. 2 Do the items represent 'dolls representing only human beings', 'toys representing animals or non-human creatures', 'other toys put up in sets', or 'statuettes (of plastic)'?
  3. 3 Are accessories packaged with figures to be classified as part of a set or as accessories under Note 3 to Chapter 95?

Ratio Decidendi

The Tribunal determined that the correct classification of each item must be based on its objective physical characteristics as observed, not on the fictional backstory or abilities. Where figures have clear non-human physical features, they are classified as 'toys representing animals or non-human creatures'; otherwise, as 'dolls representing only human beings' or other relevant codes. Accessories directly connected to the main figure do not make the package a set unless they are independent items. The appeal was allowed in part, with some items reclassified in the appellant's favour and others upheld as classified by HMRC.

Court Disposition

Appeal allowed in part

Orders

  • Some items reclassified in favour of the appellant to code 9503 00 49 90 (nil duty)
  • Other items upheld as classified by HMRC under codes attracting duty