Australian Court Rules Against Customs Authority in Tariff Classification Dispute

The High Court of Australia ruled against the country’s customs agency when it said gummy vitamins are deemed “medicaments” and are not subject to import duties, according to a Feb. 7 KPMG post. The ruling, made Feb. 5, stemmed from a dispute over the correct customs classification of the vitamin gummies, which were imported into Australia and classified as “medicaments” by the importer. The country’s customs authority argued that the imports were “sugar confectionary” or “other food preparations,” which are subject to duties worth about 5 percent of the customs value.

KPMG said the ruling “spans far beyond the correct classification of the particular imported goods” and “provides key guidance for all importers on the principles for navigating the complex classification schedule contained” in the country’s Customs Tariff Act. The ruling also highlights the “often difficult and nuanced decisions that need to be made by importers when self-assessing the classification of imported goods,” KPMG said. Importers of similar goods should reassess their tariff classifications to see whether they can benefit from duty savings or refunds.