Terraplas SA (Pty) Ltd v CSARS Case No: 71629/2011
13 March 2013
Posted by: Author: SAIT Technical
Author: SAIT Technical
Gauteng High Court heard the matter between Terraplas South Africa (Pty) Ltd
and the Commissioner for the South African Revenue Services on 10 August 2012.
Judgment was delivered on 20 February 2013.
This was a
decision in respect of an appeal in terms of s 47(9)(e) of the Customs and Excise Act 91 of 1964, in respect of a
tariff determination by the Commissioner for the South African Revenue Service.
The appellant objected to a tariff determination made by the respondent in
respect of certain goods imported by it.
Commissioner for SARS ("the respondent”) classified tiles under tariff
heading 3926.90.90 which is subject to import duty at a rate of 10%.
contended that the appropriate classification was 3918.90.40 on which the
import duty rate is 1.3%.
heading contended by the Commissioner reads "Other articles of plastics
and articles of other materials of headings 39.01 to 39.25.
The tariff heading
contended by the appellant reads: "Floor coverings of plastics, whether or
not self-adhesive, in rolls or in the form of tiles”
The issue to
decide was whether the tiles are "floor coverings” as contemplated in
tariff heading 39.18.
Makgoka J referred
to International Business Machines SA (Pty) Ltd v Commissioner for Customs and
Excise where it was remarked that, the interpretation of Schedule 1 for
purposes of classification must be effective, first, with reference to the
headings and their subheadings falling under the chapters and subchapters.
Second, reference should be had to the notes to each section or chapter.
was held that the most appropriate classification was 3918.90.40 as contended
by Terraplas SA (Pty) Ltd (the "appellant”).
appeal was upheld and the Commissioner’s classification was set aside.
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