ARTICLE · 12 OCTOBER 2014

Tariff classification of multifunction goods – lessons from the Administrative Appeals Tribunal

Hunt & Hunt

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As products evolve, tariff classification becomes increasingly challenging.

AustraliaTax

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As products evolve, tariff classification becomes increasingly challenging. This is primarily due to modern products being designed to be multi-functional.

Recently, a decision by the Australian Administrative Appeals Tribunal demonstrated the difficulty of classifying a ceiling fan which had an integrated light. The approach taken in his case provides guidance for classifying all goods with multiple functions.

CLASSIFING - ESSENTIAL CHARACTER

In Mercator Lighting Pty Ltd and CEO of Customs, the Administrative Appeals Tribunal (AAT) considered whether a ceiling fan with an integrated electric light should be classified as a fan or as a light. If classified as a fan, a concession applied providing duty free entry. If classified as a light, the goods would attract 5% duty.

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