China Ocean Shipping Co v South Australia

The High Court of Australia heard an appeal from the Supreme Court of South Australia in a dispute between China Ocean Shipping Co (COSCO) and the State of South Australia. The core of the dispute concerned the liability of COSCO for certain charges imposed by the South Australian government in relation to the use of port facilities.

The central legal issue before the High Court was whether the charges levied by the State of South Australia constituted an unlawful impost or tax, thereby infringing upon the prohibition against the imposition of duties of customs or excise by the States under section 90 of the *Constitution*. Specifically, the Court had to determine if the charges were in substance a tax on the importation or exportation of goods, or merely a fee for services rendered.

The High Court, in a majority decision, found that the charges were not duties of customs or excise. The reasoning focused on the nature of the charges, which were found to be payments for services actually rendered by the State in relation to the use of port facilities, such as pilotage and berthing fees. The Court applied the principle that a charge will only constitute a duty of customs or excise if it is a tax imposed on goods by reason of their passing into or out of the State, rather than a fee for a service provided. The Court distinguished between a tax, which is a compulsory exaction for general revenue, and a fee, which is a payment for a specific service.

The appeal was dismissed, with the High Court upholding the decision of the Supreme Court of South Australia.