A light, a fan or a super-fan? Tribunal decision highlights difficulties classifying composite goods to determine customs duty

In Mercator Lighting Pty Ltd v Chief Executive Officer of Customs, the Administrative Appeals Tribunal considered the proper customs classification of particular electric ceiling fans with integrated lights.

The decision highlights how disputes can arise applying the interpretation rules for the customs tariff.

Background

Mercator Lighting paid duty (under protest) after importing several electric ceiling fan models with integrated electric lights.
Mercator Lighting argued that the goods should be classified under the customs tariff heading for fans, with the consequence that the goods would qualify for a tariff concession. On that basis, the goods would not be subject to customs duty.