Funtastic Ltd and Chief Executive Officer of Customs
[2008] AATA 528
•25 June 2008
CATCHWORDS – CUSTOMS AND EXCISE – tariff classification – karaoke machines – sound recording, reproducing apparatus or electrical machines and apparatus, having individual functions, not specified or included elsewhere in Chapter 85 – other – decisions set aside.
Customs Act 1901 s 167
Acts Interpretation Act 1901 s 15AB
Customs Tariff Classification Act 1995 ss 3(1), 6, 7, 15, 16, 17, 18, 20, and 22, Schedule 2 and Schedule 3
Anite Networks Pty Ltd v Collector of Customs [1999] FCA 26
Barry R Liggins Pty Ltd v Comptroller General of Customs and Others (1991)
32 FCR 112; 103 ALR 565
Chinese Food & Wine Supplies Pty Ltd v Collector of Customs (Vic) (1987) 72 ALR 591; 12 ALD 313
Cray Communications Limited v Collector of Customs (1998) 26 AAR 468
Gardner Smith Pty Ltd v Collector of Customs, Victoria (1986) 66 ALR 377
Liebert Corporation Australia Pty Ltd v Collector ofCustoms (1993) 23 AAR 287
Re Gissing and Collector of Customs (1977) 1 ALD 144; 14 ALR 555
Re Tridon Pty Ltd and Collector of Customs (1982) 4 ALD 615
Times Consultants Pty Ltd v Collector of Customs (QLD) (1987) 16 FCR 449;
76 ALR 313
DECISION AND REASONS FOR DECISION [2008] AATA 528
ADMINISTRATIVE APPEALS TRIBUNAL )
) V2006/1178-1181
GENERAL ADMINISTRATIVE DIVISION )Re:FUNTASTIC LTD
Applicant
And:CHIEF EXECUTIVE OFFICER OF CUSTOMS
Respondent
DECISION
Tribunal: Deputy President S A Forgie
Date: 25 June 2008
Place: Melbourne
Decision: The Tribunal:
1.sets aside the decisions of the respondent dated 15 May 2006 and affirmed on 19 October 2006 in respect of:
Entry No. 2E21971196B PWA No. 2M61288513N
Entry No. 2M31810376K PWA No. 2M61288509C
Entry No. 2M32030289A PWA No. 2M61288512M
Entry No. 2M33181780E PWA No. 2M61298503B
and
2.substitutes decisions that the goods in each of the four entries be classified to heading 8543.70.00 in
Schedule 3 of the Customs Tariff Act 1995 being “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this Chapter - Other”.S A Forgie
Deputy President
REASONS FOR DECISION
Funtastic Ltd (Funtastic) imported four models of Karaoke Machines in 2006. Those machines are known as Vibes Karaoke Unit V11 (V11), Vibes Karaoke Unit V14 (V14), Vibes Karaoke Unit V31 (V31) and VJ Starz Video Karaoke Machine (VJ Starz) and together form the subject goods. Under the Customs Act 1991 (Customs Act), the Chief Executive Officer of Customs (CEO) issued retrospective demands for the payment of duty in respect of the entry into Australia of all four machines but only one, VJ Starz, continues in existence. Funtastic has also paid duty under protest under s 167 of that legislation. At the heart of the disagreement between the parties lies the classification of the machines under the Customs Tariff Act 1995 (CT Act). Their classification under one or other of the headings in Schedule 3 of the CT Act affects the rate of duty payable in respect of them on their entry into Australia.
Funtastic and the CEO now agree that V31 and VJ Starz should be classified under heading 8543.[1] The CEO contends that V11 should be classified under heading 8519 both as it was drafted before 1 January 2007 and since that date.[2] He contends that V14 should be classified under heading 8520[3] up to 1 January 2007 and, since then, under 8519 as it is now drafted. Headings 8519 and 8520 were drawn into one with effect from 1 January 2007.[4] Funtastic contends that they should be classified under heading 8543.70.00[5] as or, in the alternative, heading 8521.90.00.[6] I have decided to substitute decisions that the goods in issue be classified to heading 8543.70.00 being “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this Chapter - Other”.
[1] “ELECTRICAL MACHINES AND APPARATUS, HAVING INDIVIDUAL FUNCTIONS, NOT SPECIFIED OR INCLUDED ELSEWHERE IN THIS CHAPTER”
[2] “SOUND RECORDING OR REPRODUCING APPARATUS”
[3] “TURNTABLES (RECORD-DECKS), RECORD-PLAYERS, CASSETTE-PLAYERS AND OTHER SOUND REPRODUCING APPARATUS, NOT INCORPORATING A SOUND RECORDING DEVICE”
[4] Customs Tariff Amendment (2007 Harmonized System Changes) Act 2006, s 3, Schedule 1, Item 411
[5] “- Other machines and apparatus”
[6] “- Other”
THE CLASSIFICATION PROCESS
In considering the proper classification of the subject goods, the first step is to identify those goods. Only when that has been done is it appropriate to construe the tariff classifications to determine to which tariff classification the subject goods should be classified. This follows from the Tribunal’s decision in Re Gissing and Collector of Customs[7] and also from the later decision of Times Consultants Pty Ltd v Collector of Customs (QLD).[8]
[7] (1977) 1 ALD 144;14 ALR 555, Brennan J, President, Mr Skermer and Mr Stock, Members
[8] (1987) 16 FCR 449; 76 ALR 313 Fox, Morling and Wilcox JJ
The manner in which the first step of identification is undertaken was considered by the Tribunal in Re Tridon Pty Ltd and Collector of Customs.[9] Referring to the authorities, the Tribunal in Re Tridon identified eight principles as relevant in identifying the subject goods:
“(i) Identification must be objective, having regard to the characteristics which the goods, on informed inspection, present ...;
(ii) The identification of goods cannot be controlled by the descriptions of goods adopted in the nomenclature of the Tariff ...;
(iii) Nevertheless in identifying goods it is necessary to be aware of the structure of the nomenclature, the basis on which goods are classified and the characteristics of goods which may be relevant to the frequently complex task of classification ...;
(iv) In the identification of goods, knowledge of how those who trade in the goods describe them will usually be relevant, but not necessarily conclusive ...;
(v) All the descriptive terms, both specific and generic, by which the goods may fairly be identified may be relevant to the classification of the goods within the Tariff ...;
(vi) Descriptive terms may be of varying degrees of specificity (eg windscreen wiper blade refills, parts for a windscreen wiper or parts for a motor vehicle). Generic descriptions may be by reference to the materials or substances from which the goods are manufactured ...;
(vii) Identification will frequently extend to characterisation of goods by reference to their design features cf Re Virgo Manufacturing Co Pty Ltd and Collector of Customs (Vic) (1981) 3 ALN No 15, or by reference to their suitability for a particular use where those characteristics emerge from informed inspection of the goods as imported ... . The extent to which these characteristics may be relevant to the ultimate classification of the goods and whether evidence of the use to which goods are put after importation is relevant, will depend upon the language of the Tariff Nomenclature ...;
(viii) Composite goods, notwithstanding that they have components which are separately identifiable, may nevertheless be identifiable in combination as a new entity if the identity of the separate units is subordinated to the identity of the combination ...”[10]
[9] (1982) 4 ALD 615 at 620, Mr Hall, then Senior Member and Mr Wickens and Mr Prowse, Members
[10] (1982) 4 ALD 615 at 620-621, authorities and citations omitted
The task of identifying goods was further considered by the Full Court of the Federal Court in Times Consultants Pty Ltd v Collector of Customs (QLD).[11] The majority noted that:
“ It must always be remembered that the classification of goods for tariff purposes is a practical ‘wharf-side’ task. Upon some occasions it will be necessary for the classifier to obtain information to enable identification of the goods but it is entirely inappropriate that he or she should enter into inquiries upon matters such as cost, commercial advantage or purchaser preference … It ought normally be possible to classify goods merely by looking at them and by considering their nature and function which they were designed to serve. In the case of goods made up in sets, it may be that there is no single essential character; in which case r 3(1)(b) will be inapplicable and reference will need to be made to the arbitrary rule contained in r 3(1)(c).”[12]
[11] (1987) 16 FCR 449; 76 ALR 313, Morling and Wilcox JJ, Fox J dissenting
[12] (1987) 16 FCR 449; 76 ALR 313 at 328; 463
Earlier in their judgement, they had addressed another aspect of the wharf-side task:
“ The authorities make it clear that in determining what is the essential character of goods it is the state or condition of the goods at the time of importation that is the determining factor and that it is wrong to classify goods or to determine their essential character by reference to the purpose of the importer or of the purchaser. Regard must be had to the characteristics of the goods themselves, as they would present themselves to an informed observer: see Chandler & Co v Collector of Customs (1907) 4 CLR 1719 at 1729; Whitton v Falkiner (1915) 20 CLR 118 at 131; Blackwood Hodge (Australia) Pty Ltd v Collector of Customs (1980) 47 FLR 131 at 155.”[13]
[13] (1987) 16 FCR 449; 76 ALR 313 at 327; 462
In Chinese Food & Wine Supplies Pty Ltd v Collector of Customs (Vic),[14] Lockhart J, with whom Woodward and Ryan JJ agreed, was concerned with the classification of certain liquid as either a medicament under Item 30.03 of Schedule 3 to the CT Act or as alcoholic beverages under 22.09.91. He described the task of identifying the subject goods:
“ It is the goods themselves in the condition in which they are imported here to which it is generally necessary to look under the Tariff Act to determine the identification of goods for the purposes of Customs duty …
Whether the goods in suit properly fall within Item 30.03 of the Customs tariff is determined by an objective test not by the intention of the manufacturer in China or of the exporter or the importer. The test is applied at the port of entry of the goods and at the time of entry. The characteristics of the goods, their get-up, colour, decoration, labelling and packaging are all relevant considerations. In some cases, a visual inspection of the goods and their packaging will disclose characteristics of the goods and enable a judgment to be made as to whether they are for therapeutic or prophylactic use. But visual inspection will not necessarily provide the answer in each case. Tests may have to be carried out and inquiries made to ascertain the relevant characteristics of the goods. In the present case, samples were taken and sent for chemical analysis. As the tribunal noted, the paucity of the information contained in the labelling of the goods necessitated further inquiries being made in respect of them.
The critical elements upon which the tribunal relied, namely, the labelling and general presentation of the goods as imported into Australia, the analysis of the liquid contained in the bottles, the contents of the sale catalogue issued with the title ‘Wines’ on its cover with both kinds of goods included in it and the display of those kinds of goods in the liquor section of a supermarket in Hong Kong are in my view all relevant matters which the tribunal was entitled to consider …”[15]
DESCRIPTION OF THE SUBJECT GOODS
[14] (1987) 72 ALR 591; 12 ALD 313
[15] (1987) 72 ALR 59; 12 ALD 313 at 599
VJ Starz Video Karaoke Machine
The VJ Starz comes packed in a box bearing its name, names and details of ten songs digitally recreated on the machine, a photograph of the unit and the microphone, various photographs of two people using the microphone and watching themselves on a television monitor and details of the unit. Included in the box is the unit, a microphone, power adaptor, two sets of AV cables, label sheet and 10 song cartridge. Among the wording on the box are the following statements:
“MUSIC TO YOUR EYES
Control Your Voice & The Song!
Change Tempo & Key
Volume Control
(((Echo))) Feature”
“Record Your Own Music Video With Your VCR”
“Built-In Camera Captures You Singing on TV!”
“Plugs Directly Into Your TV!”
In general outline, the microphone looks like a stylised two-colour plastic version of a microphone used by the artists who originally recorded the ten songs coming with the machine. It has the appearance also of a remote control with eight or, if two functions of one are both counted, nine keys. They are:
“(1)a Menu key to display a menu on an external television set;
(2)a Select key to move up and down on the menu when displayed on the external television set;
(3)an Enter key with which to make a selection from the Menu so displayed;
(4)a Volume key to control the volume of the recorded music;
(5)two keys with the word “Key” marked in between them to control the key of the recorded music;
(6)two keys with the word “Tempo” marked in between them to control the tempo of the recorded music; and
(7)an Echo key to control the echo effect on the voice portion of the sound reproduced on the external television set.
An examination of the unit itself shows that it is made of two-tone plastic to match the microphone. It has a camera, a power switch, a cartridge slot, a retractable handle, a compartment to store the microphone, cartridges and AV cables, inlet jacks for the VCR video and audio and for the external television’s video and audio, an inlet for the power adaptor, a jack for the microphone I have described and a second jack for a second microphone with a volume control for each.
V11, V14 and V31
There are no samples of the three other karaoke machines. All that is available is a brochure on each.[16] I will reproduce the key features of each as described in those brochures:
[16] Exhibit A at 13, 16 and 19
Karaoke Unit V11
Programmable CD/CD+Graphics player – plays karaoke CD+G discs plus music CDs
Built-in powerful speaker and amplifier
Stereo audio output to connect to a power amplifier
Video output for CD+G discs – song lyrics appear on your TV
LED Display for CD player functions
One microphone included – add a second microphone (optional) for duets
Rotary controls for automatic voice control, echo volume, mic volume and master volume
Built-in carrying handles
Stereo audio output for connecting to a home stereo system
8’ stereo audio plus video cable included”[17]
[17] Exhibit A at 13
Karaoke Unit V14
Programmable CD & CDG Player
Built in speaker & amp & Monitor
2 microphones and 2 mic inputs
AVC voice cancellation
stereo audio and audio video output
Audio & Video cables included
Bonus CD&G disc included – 4 songs
Cassette Recording Feature
LED Display for CD player functions
Echo, Mic and Master volume controls”[18]
[18] Exhibit A at 16
Karaoke Unit V31
Karaoke Vision – pop-up Video Camera
Standard AV Output Jacks for Recording your performance to your VCR
5" black and white monitor
Tray Load
2-digital LED CD+G track indicator
Auto voice control
Echo control”[19]
[19] Exhibit A at 19
THE LEGISLATIVE FRAMEWORK
Part II of the CT Act provides for imposition of duties of customs. Section 15 provides that duties of customs are imposed on goods imported into Australia on or after 1 July, 1996 and on goods which are imported into Australia before 1 July, 1996 and entered, or again entered, for home consumption on or after that day. The duty payable upon such goods is worked out in the manner provided for in ss. 16, 17, 18, 20 and 22. Section 16(a) provides that:
“if the goods are not the produce or manufacture of a Preference Country – [the duty is worked out] by reference to the general rate set out in the third column of the tariff classification under which the goods are classified;”
A reference to the tariff classification under which the subject goods are classified is a reference to the heading or subheading in whose third column a rate of duty is set out and under which the subject goods are classified.[20] The reference to a heading and a subheading is a reference to those appearing in Schedule 3 to the CT Act.[21]
[20] CT Act, s 6
[21] CT Act, s 3(1)
The Interpretation Rules
The CT Act, and Schedule 3 in particular, gives effect to the International Convention on the Harmonized Commodity Description and Coding System, which is referred to in the International Convention on the Harmonized Commodity Description and Coding System done at Brussels on 14 June 1983[22] (Convention) (Harmonized System).[23] It came into force in Australia on 1 January 1988.
[22] ATS 1988 No 30
[23] Noted in Note 1 to s 7 of the CT Act; s 3(1)
Schedule 2 of the CT Act sets out the General Rules for the Interpretation of the Harmonized System provided for by the Convention and so for the interpretation of Schedule 3 (“Interpretation Rules”).[24] The text of the Interpretation Rules is based on the Harmonized System.[25] Those Interpretation Rules “… must be used for working out the tariff classification under which goods are classified.”[26] In so far as they are relevant, they are:
[24] CT Act, s 7(1)
[25] Noted in Note to Schedule 2 of the CT Act
[26] CT Act, s 7(1)
“1. The titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions …”
2.(a) …
(b)Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be determined according to the principles of Rule 3.
3.When, by application of Rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
(a)The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
(b)Mixtures, composite goods consisting of different materials or made of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(c)When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
4.Goods which cannot be classified in accordance with the above Rules shall be classified under the heading appropriate to the goods to which they are most akin.
5. …
6… the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related Subheading Notes and, mutatis mutandis, to the above Rules, on the understanding that only the subheadings at the same level are comparable. For the purposes of this Rule the relative Section and Chapter Notes also apply, unless the context otherwise requires.”
Notes to Section XVI
The tariff classifications under consideration in this case all come within Chapter 85, which is found in Section XVI of Schedule 3. That is a section headed:
“Machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles”
The Section begins with Notes and Additional Notes. Note 1 excludes from classification under the Section a number of specific items. None is relevant in this case. Note 2 is not relevant but Notes 3, 4 and 5 provide that:
“3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
4.Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function.
5.For the purposes of these Notes, ‘machine’ means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of Chapter 84 or 85.”
Chapter 85
Chapter 85 begins with Notes and Additional Notes but none is relevant in this case. Some of the subject goods were imported before the amendments to the CT Act commencing in 2007. Up until 2007, the headings under consideration in this case read as follows:
“8518 MICROPHONES AND STANDS THEREFOR; LOUDSPEAKERS, WHETHER OR NOT MOUNTED IN THEIR ENCLOSURES; HEADPHONES AND EARPHONES, WHETHER OR NOT COMBINED WITH A MICROPHONE AND ONE OR MORE LOUDSPEAKERS; AUDIO-FREQUENCY ELECTRIC AMPLIFIERS; ELECTRICAL SOUND AMPLIFIER SETS …”
“8519 TURNTABLES (RECORD-DECKS), RECORD-PLAYERS, CASSETTE-PLAYERS AND OTHER SOUND REPRODUCING APPARATUS, NOT INCORPORATING A SOUND RECORDING DEVICE …”
“8520 MAGNETIC TAPE RECORDERS AND OTHER SOUND RECORDING APPARATUS, WHETHER OR NOT INCORPORATING A SOUND REPRODUCING DEVICE …”
“8521 VIDEO RECORDING OR REPRODUCING APPARATUS, WHETHER OR NOT INCORPORATING A VIDEO TUNER …”
“8525 TRANSMISSION APPARATUS FOR RADIO-TELEPHONY, RADIO-TELEGRAPHY, RADIO-BROADCASTING OR TELEVISION, WHETHER OR NOT INCORPORATING RECEPETION APPARATUS OR SOUND RECORDING OR REPRODUCING APPARATUS; TELEVISION CAMERAS; STILL IMAGE VIDEO CAMERA RECORDERS; DIGITAL CAMERAS …”
“8543 ELECTRICAL MACHINES AND APPARATUS HAVING INDIVIDUAL FUNCTIONS, NOT SPECIFIED OR INCLUDED ELSEWHERE IN THIS CHAPTER …”
Since 1 January 2007, all of the headings remain the same other than 8519, 8520 and 8525. Heading 8520 no longer exists and heading 8519 reads:
“SOUND RECORDING OR REPRODUCING APPARATUS”
The words “radio telephony and radio telegraphy” have been removed from heading 8525.
THE EVIDENCE
Dr Cubitt’s qualifications
Dr Len J Cubitt is a consulting engineer who examined the four machines for the purpose of preparing a report dated 13 August 2007 and in a Supplementary Report also dated 13 August 2007. His reports set out his opinions regarding what is, and what is not, a sound recording and/or sound reproduction system or apparatus as well as his opinion as to the appropriate technical identification of each machine.
Dr Cubitt began work as an apprentice fitter and turner but turned his attention to mechanical engineering. He holds a Diploma of Mechanical Engineering from the Footscray Institute in 1964 and a Bachelor of Engineering (Mechanical) (Hons) from Monash University in 1968. His PhD, which was conferred by Monash University, is also in the discipline of engineering but with a focus on computing and online data collection. Dr Cubitt had worked as a design engineer with GMH in the mechanical disciplines but has also worked in that role for ACI and Siemens. After completing his PhD, he started as a scientist at the Aeronautical Research Laboratories where his work required him to use his knowledge of electronics and computers. He moved then to work as a Lecturer and Professor of Engineering at the Ballarat University and at the University of Washington in Seattle. He has also been a Visiting Lecturer at the School of Engineering at Monash University and has published on a range of issues. Currently, Dr Cubitt is a consultant in a wide range of engineering disciplines and has provided support to engineers in a number of countries, including Australia. His work includes providing electronic technical support the Australia National Telescope Facility and he has been the Research and Development Leader for the STRUCDES project. STRUCDES is computer software for structural engineering and design.
Sound recording or reproducing apparatus
Dr Cubitt said that, in his opinion:
“… the meaning of a sound recording system is a device that converts sound waves to an electrical signal, generally via a microphone and records this information that is stored on a gramophone record, or magnetic tape or compact disc or electronic memory. The information recorded is either recorded in analogue or digital format. Excluding distortion of the signal, a sound recording device does not modify the sound signal.
In my opinion, a sound reproducing device processes a signal produced by a microphone or stored information (tape, CD or gramophone record) and amplifies the signal; the sound waves are produced by speakers. Similarly, excluding distortion of the signal, a reproducing device does not modify the signal other than to modify the amplitude of the vibrations (the loudness of the sound heard) and/or filtering certain frequencies and/or applying different amplification (or loudness) to the signal as function of the frequency of the signal (or sound wave analogue). …
In my opinion, a video (vision) capture device does sometimes include a sound capture device. Close circuit television (CCTV) devices do not always allow for the capture of sound.
In my opinion, a sound recording and/or a sound reproduction system does not include
1.The capture and reproduction of vision signals.
2.The combination (or mixing) of a number of sound sources.
3.The modification of the sound signal in the forms of echoes and/or frequency changes of the original sound signal and/or tempo of the sound being reproduced.”[27]
[27] Exhibit A at 3-4
CDs, VCDs and DVDs
An extract from Wikipedia described a Compact Disc (CD) as:
“… an optical disc used to store digital data, originally developed for storing digital audio. The CD, available on the market since late 1982, remains the standard playback medium for commercial audio recordings to the present day.”[28]
In the same publication, a “CD+Graphics” was described:
“Compact Disc + Graphics (CD+G) is a special audio compact disc that contains graphics data in addition to the audio data on the disc. The disc can be played on a regular audio CD player, but when played on a special CD+G player, can output a graphics signal (typically, the CD+G player is hooked up to a television set or computer monitor); these graphics are almost exclusively used to display lyrics on a television set for karaoke players to sing along with.”[29]
[28] Exhibit 1 at 1
[29] Exhibit 1 at 6
Dr Cubitt agreed with the description of a video CD, or VCD, as:
“Video CD … is a standard digital format for storing video on a Compact Disc. …”[30]
[30] Exhibit 1 at 7
A DVD is a digital video disc that provides a high quality video format.
Karaoke
Mr Northcote drew Dr Cubitt’s attention to the print out from
Wikipedia.org beginning with a definition of “karaoke” as:
“… a form of entertainment in which an amateur singer or singers sing along with recorded music on a microphone. The music is typically of a well-known song in which the voice of the original singer is absent or reduced in volume. Lyrics are usually also displayed, sometimes including color changes synchronized with the music, on music video to guide the sing-along.
…”[31]
[31] Funtastic’s Statement of Facts and Contentions, 1 of 9
He also drew his attention to the statement that:
“Most common machines are audio mixers with microphone input built-in with CD+G, Video CD, Laser Disc, or DVD players. CD+G players use a special track called subcode to encode the lyrics and pictures displayed on the screen, while the other formats natively display both audio and video. …”[32]
Dr Cubitt agreed that this is so and that some show full video clips and also allow the tempo and key of the music to be changed. It is also possible to perform karaoke using a mobile phone. Whether such a mobile phone could be described as a karaoke machine would depend on where the signal came from but it would be a subset of a function of that particular mobile phone. Dr Cubitt also agreed with the statement that:
“CD+G, DVD, VCD and microphone-based players are most popular for home use. Due to song selection and quality of recordings, CD+G is the most popular format for English … It’s also important to note that CD+G has limited graphical capabilities, whereas VCD and DVD usually have a moving picture or video background. …”[33]
[32] Funtastic’s Statement of Facts and Contentions, 3 of 9
[33] Funtastic’s Statement of Facts and Contentions, 5 of 9
The operation of the VJ Starz
Dr Cubitt described the way in which the VJ Starz works:
“The VJ Starz Karaoke machine has a video camera that is able to capture vision signals. Text stored on the memory card can be superimposed onto the video signal. This text displayed on the television screen, is timed to the music (sound). In addition the text displayed is sequentially highlighted on the screen to prompt the users on the words that coincide with the music or sound that is being reproduced. The display of the words on the television screen can be suppressed from the video recording by the manner in which the cables are connected to the Television screen and video recorder. The technique used to suppress the text on the video signal recorded is explained in the manual …”[34]
[34] Exhibit A at 9-10
Dr Cubitt said that:
“There are three sources of sound signals processed by the VJ Starz Karaoke machine, namely up to two microphone inputs (one is supplied with the machine) and the music reproduced from the memory cartridge card. These signals are mixed and exported to a Television set for reproduction or to a video recorder to record the sound along with the vision of the singers.
The sound signal from the microphones can be modified within the VJ Starz Karaoke machine, to produce an echo affect (sic). The volume of the sound input from the microphones can be independently adjusted by the users.
The sound reproduced from the memory card can be modified by changing the tempo …. The tempo of the music reproduced from the memory card is under the control of the singer with the microphone supplied with the VJ Starz Karaoke machine.
The key of the music reproduced from the memory cartridge in the VJ Starz Karaoke machine, can be modified by the singer with the microphone supplied with the VJ Starz Karaoke machine.”[35]
[35] Exhibit A at 10-11, footnote omitted
In his supplementary report, Dr Cubitt explained further the way in which the sound signal is modified:
“The sound signal from the microphones is not a simple transmission process. The sound signals captured on the microphone(s) can be modified to produce an echo as well as the volume of the sound from each microphone can be independently adjusted. The modified voice signals are then mixed with the music from the cartridge before the sound signal is sent to the television receiver and/or the VCR.
…
The sound signal retrieved from the digital cassette is not a simple transmission process to the television receiver and/or the VCR. The sound signal recovered from the digital cassette can be modified by changing its tempo and/or key before it is mixed with the voice sound signal(s) and the combined sound signal is then sent to the television receiver and/or the VCR.
…
Depending on how the AV (audio visual) cables are connected from the VJ Starz Karaoke machine, the song lyrics can be transmitted to a television receiver and/or to a VCR. It should be noted that the tempo of the lyrics transmitted is under the control of the user of the machine.”[36]
[36] Exhibit B at 6-7
Later, Dr Cubitt emphasised that it is both the audio and the video signals that are modified and not simply transmitted to a television receiver and/or VCR.[37] In his opinion:
“… a karaoke machine is not a sound recording and/or reproduction system, but is a sound reproduction, sound mixing, echo producing as well as vision reproducing system for the lyrics of a song and in some cases a vision capture reproduction system. Take away any of the main features of sound reproduction, sound mixing, echo producing as well as vision reproducing system for the lyrics of a song; the machine would not act as a karaoke machine.”[38]
[37] Exhibit B at 8
[38] Exhibit B at 9-10
Dr Cubitt rejected a suggestion that VJ Starz is similar to a DVD player saying that it is so much more due to the changes and modifications that can be made to the input. A DVD player only reproduces the audio and visual signals that have been pre-recorded on the DVD disc.[39]
[39] Exhibit B at 10
What is VJ Starz?
In his report, Dr Cubitt said that:
“In my opinion, the VJ Starz Karaoke machine is a video capture, sound mixing machine that produces signals that can be displayed on a Television set and recorded on a standard video recorder. The VJ Starz Karaoke machine is not simply, a device a sound (sic) for the recording of sound and a reproduction device of sound, it is much more. The VJ Starz Karaoke machine provides the user(s) with the ability to:
1.Capture a video signal via a camera built into the unit.
2.Capture of up to two voice inputs via microphones.
3.Reproduce the music signal recorded on a memory card. The tempo and key of the music signal may be varied by the user.
4.Modify the voice signals to produce an echo.
5.Mix the voice signals from the microphones and recorded music stored on the memory card.
6.Export the video signal and video text of the words of the song to a video display (a television set) and/or video recording machine (tape or disk) for recording.
7.Export the mixed audio (sound) signal that may include echo effects to a video display (a television set) and/or video recording machine (tape or disc) for recording.”[40]
[40] Exhibit A at 11
The operation of the V11
Dr Cubitt said that:
“The Vibes Karaoke Unit V11 does reproduce recorded (from CD+G disc) sound as well as graphics that can be viewed on a Television set as well as the machine accepts inputs from up to two microphones. The sound input from the microphone(s) can be modified using an echo feature. The volume of the voice signals captured by the microphones can be modified by the user. All the sound inputs can be mixed together to form one sound output.”[41]
[41] Exhibit A at 14
What is V11?
In his report, Dr Cubitt said that, in his opinion:
“… the Vibes Karaoke Unit V11 machine is a sound capture, sound mixing machine, a sound echo machine, that produces signals that can be displayed on a Television set for the text of the song and output sound is reproduced via an inbuilt speaker and recorded on a standard video recorder. The sound output can be reproduced and/or recorded on a stereo system. The Vibes Karaoke Unit V11 machine is not simply, a device a sound recording and/or a reproduction device, it is much more. The Vibes Karaoke Unit V11 machine provides the user(s) with the ability to:
1.Capture up to two voice inputs via separate microphones.
2.Reproduce the music signal recorded on a special CD (compact disk) that includes both music and video text.
3.Modify the voice signals to produce an echo.
4.Mix the voice signals from the microphones and recorded music stored on the CD.
5.Export the video text (recorded on the CD) of the words of the song to a video display (a television set).
6.Export the mixed audio (sound) signal that may include echo effects to the sound reproduction or sound recording system (stereo player).”[42]
[42] Exhibit A at 14
Dr Cubitt agreed with a suggestion in cross-examination that the V11’s CD/CD+Graphics player would be regarded as a sound recording device but only if the graphics were eliminated. The graphics take the form of the line of the song displayed on the television screen. He also agreed with the suggestion that it would be a sound reproducing device if regard were taken only of the fact that it plays a CD. It is more than a sound reproducing device for it plays music and displays the text of the lyrics. It allows people to add to the music through the microphones. Dr Cubitt agreed with Mr Northcote that the V11 could be characterised as a stand alone CD machine and as a stand alone amplifier. Despite that, he would not characterise it as a composite machine with both functions. Although the V11 can be used in that way to play digital music, it is not being used as a karaoke machine when it is.
Dr Cubitt said that he had never worked in the consumer electronics industry but was aware that products came in a vast range. At the higher end of the market, things such as amplifiers, speakers and CD players come in separate units that are hooked up with cables to become one system. They can also come in one unit. In view of that, Mr Northcote asked him, why would he not regard the V11 as comprising two or more units or machines. Dr Cubitt replied that the V11 is basically a machine that allows a CD+G to be played so that text can be displayed on a screen at the same time as well as reproducing a signal when a CD is played. The amplifier and speaker becomes a sub-set of the V11’s primary function.
The unit is an integrated device. If an amplifier, tape deck, amplifier and speakers were separate units, they could be used for anything. They could be played as a sound system or through a computer. As three separate units, they are independent devices but they are integrated and operate as a whole in the unit. They become an integrated unit but not a composite unit. A car is a combination of all its parts and so could be said to be an integrated unit. At the same time, a car is a machine. A mobile phone with a video camera is not a composite machine but an integrated unit. A composite machine comes about when two different machines fit together.
The operation of the V14
Dr Cubitt wrote in his report that:
“The Vibes Karaoke Unit V14 does reproduce recorded (from CD+G disc) sound as well as graphics that can be viewed on a Television set as well as the machine accepts inputs from up to two microphones. The sound input from the microphone(s) can be modified using an echo feature. The volume of the voice signals captured by the microphones can be modified by the user. All the sound inputs can be mixed together to form one sound output. The sound produced can be recorded onto to (sic) a cassette tape via a built in cassette tape recorder.”[43]
[43] Exhibit A at 17
What is the V14?
In Dr Cubitt’s opinion, the:
“… Vibes Karaoke Unit V14 machine is a sound capture, sound mixing machine, a sound echo machine, that produces signals that can be displayed on a Television set for the text of the song and output sound is reproduced via an inbuilt speaker and recorded on a standard video recorder. The sound output can be reproduced and/or recorded on a stereo system. The Vibes Karaoke Unit V14 machine is not simply, a device a sound recording and/or reproduction device, it is much more. The Vibes Karaoke Unit V14 machine provides the user(s) with the ability to:
1.Capture of up to two voice inputs via microphones.
2.Reproduce the music signal recorded on a special CD (compact disk) that includes both music and video text.
3.Modify the voice signals to produce an echo.
4.Mix the voice signals from the microphones and recorded music stored on the CD.
5.Export the video text (recorded on the CD) of the words of the song to a video display (a television set).
6.Export the mixed audio (sound) signal that may include echo effects to the sound reproduction or sound recording system (stereo player) or recorded via the built in cassette recorder.”[44]
[44] Exhibit A at 17
The operation of the V31
Dr Cubitt said that, in his opinion:
“… the Vibes Karaoke Unit 31 machine is a video capture, sound mixing machine that produces signals that can be displayed on a Television set and recorded on a standard video recorder. The VJ Starz Karaoke machine is not simply, a device a sound (sic) for the recording of sound and a reproduction device of sound, it is much more. The Vibes Karaoke Unit 31 machine provides the user(s) with the ability to:
1.Capture a video signal via a camera built into the unit.
2.Capture of voice input via a microphone.
3.Reproduce the music signal recorded on a CD.
4.Modify of the voice signals to produce an echo.
5.Mix the voice signals from the microphone and recorded music stored on the CD.
6.Display of the video text via the built in black and white video screen.
7.Export the video signal and video text of the words of the song to a video display (a television set) and/or video recording machine (tape or disk) for recording.
8.Export the mixed audio (sound) signal that may include echo effects to a video display (a television set) and/or video recording machine (tape or disk) for recording.”[45]
[45] Exhibit A at 20
Comparison of Sony MHCRG590 Shelf System and V11 and V14
Mr Northcote drew Dr Cubitt’s attention to the Sony MHCRGG590 Shelf System (Sony 590) and asked him to describe what the V11 can do that the Sony 590 cannot. The Product Description begins with a statement that:
“Shake the foundations with the 460w mini hifi system from Sony. Holds 3 CDs, has a cassette deck and FM/AM tuner with RDS function.”[46]
Its functions are described as “CD Player, Radio Tuner, Cassette Deck”. The printout of its Product Information described each of those features. The CD Player is described as able to play “CD (Audio)· CD-R · CD-RW · CD+G Karaoke”.[47] The Product Information also described its amplifier/speakers. Among the features of the amplifier/speakers were the connections being “Mic in · Line in · Headphones Out · Video Out”.[48]
[46] Exhibit 3 at tab 1, 1 of 3
[47] Exhibit 3 at tab 1, 1 of 1
[48] Exhibit 3 at tab 1, 2 of 3
Dr Cubitt said that the Sony 590 could be used for karaoke, among other things, although he did not know from the Product Description whether it would be possible to control the volumes of the various functions. The Sony 590 can also be used to record. When compared with the V14 machine, Dr Cubitt was not sure how many microphones could be incorporated into the Sony 590. Otherwise, the Sony 590 and the V14 had all the same functions.
Comparison of Sony MHC-GNX88 and V11 and V14
The Sony MHC-GNX88 (Sony GNX88) consists of a Tuner/CD/CDG/MP3 player/Stereo cassette deck/Amplifier (main unit) and front speakers. Dr Cubitt refuted Mr Northcote’s suggestion that this is a composite machine. All that the Sony GNX88 amounts to is a box containing items; it is like a car. It has a video output to connect to a television. Dr Cubitt could not see any function that V11 and V14 could do that the Sony GNX88 could not. It has the functionality of the V14 as a sub-set of what it does. It has two microphone jacks and the volume and echo can be adjusted.
Dr Cubitt said that the Sony GNX88 is a sound recording and reproduction device whereas the V14 is a karaoke machine. He illustrated his answer by reference to a radio and a radio in a car. A radio is a radio but when a radio is placed in a car, the question is whether it is a radio or a car. The functionality of the mini hi fi system exceeds that of the V14 but the functionality of V14 does not meet the functionality of the hi fi system.
Comparison of Philips DVD Mini-HiFi System and V11 and V14
The User Manual of the Philips DVD Mini HiFi System (Philips HiFi) lists various subjects with which it deals. Among them are Tuner Operations, Tape Operation/Recording, AUX Operations, USB Operations, Clock/Timer Operations and Sound and Volume Controls. Under the heading of “Other Functions” were listed, among others, Vocal, Key control, Echo, Karaoke and Listening to external sources.[49] Dr Cubitt could not see an ability to use CD+G format but it does use DVD. He has seen a DVD karaoke machine but has never seen a machine with video, backing music and the ability to add voice. It is possible to see the video display of the song and to hear the music of the song and it is also possible to suppress the lyrics but to hear the music. Vocals can be added. The Vocal function allows a person to fade out the original vocal from a karaoke. Dr Cubitt could not work out from that feature whether there was also frequency control. He needed to see the specifications.
[49] Exhibit 3 at tab 3, 7
Dr Cubitt did not regard the Philips HiFi as having all the features of the VJ Starz as it could not play a CD+G format. The Philips HiFi has more functions than the VJ Starz.
CONSIDERATION
When do I consider the Interpretation Rules and Note 3 to Section XVI and what are their roles?
When am I to consider the Interpretation Rules and Note 3 to Section XVI? It is clear from the judgment of the Full Court of the Federal Court in Gardner Smith Pty Ltd v Collector of Customs, Victoria[50] that regard may be had to the Interpretation Rules in order to understand the terms of any particular classification. The Full Court said that s 15AB of the Acts Interpretation Act 1901 permitted it to do so in the circumstances prescribed in that section.[51] That is not to say that the Interpretation Rules can be used to contradict the meaning of the language used by Parliament.[52]
[50] (1986) 66 ALR 377, Keely, Neaves and Wilcox JJ
[51] (1986) 66 ALR 377 at 383-384
[52] Barry R Liggins Pty Ltd v Comptroller General of Customs and Others (1991) 32 FCR 112; 103 ALR 565 at 119; 573 per Beaumont J
Rule 1 of the Interpretation Rules provides that classification shall be determined by reference to the terms of headings and any relevant Chapter and Section Notes. Only if those headings or Notes do not otherwise require may regard be had to the remaining five Interpretation Rules. That means that my first focus must be on Chapter 85 and Section XVI and their Notes before I have regard to the remaining Interpretation Rules.[53] Even then, Madgwick J said in Cray Communications Limited v Collector of Customs,[54] “… one only comes to Note 4 [in Section XVI] if, without it, a classification cannot be made.”[55]
[53] SeeLiebert Corporation Australia Pty Ltd v Collector ofCustoms (1993) 23 AAR 287 at 290 per Wilcox, O’Connor and Drummond JJ
[54] (1998) 26 AAR 468
[55] (1998) 26 AAR 468 at 477, appeal to Full Court of the Federal Court dismissed: Anite Networks Pty Ltd v Collector of Customs [1999] FCA 26, Einfeld, Carr and Lehane JJ
These principles do not mean, however, that the Interpretation Rules or the Notes are given a role to play from the outset. They are not. Before classification comes the task of identifying the subject goods to be classified. That is a task in which a precise understanding of the classifications is not necessary although, as the Tribunal said in Re Tridon Pty Ltd v Collector of Customs, it is necessary to be aware of the structure of the nomenclature. That provides the basis on which goods are classified and the characteristics that may be relevant in the classification but that is all that it does. It follows that I do not propose to have regard to Note 3 of the Notes to Section XVI at this stage.
Identification of the subject goods
Although the CEO has agreed with Funtastic that VJ Starz and V31 should be classified under heading 8543, I will start with the VJ Starz as much of the discussion focused on it and it is the only machine that was available to me. I have already described it and its packaging above. If I have regard to those matters alone, I am satisfied that the essential character of the VJ Starz is that of a machine used for karaoke in the sense that it is a machine that is used as part of:
“… a form of entertainment originally developed in Japan, in which amateur performers sing pop songs to the accompaniment of pre-recorded music. It involves using a karaoke machine which, as well as providing the backing track also enables the singer to follow the words on a screen.» 1980s: Japanese, literally ‘empty orchestra’.”[56]
[56] “Karaoke” as defined in Chambers 21st Century Dictionary, 1999, reprinted 2004, Chambers (Chambers). It is a meaning consistent with that given in Wikipedia, to which I was referred; see [25] above.
When I have regard to the further matters raised by the evidence, I am also satisfied that its essential character remains the same. The machine has no capacity to play a CD, DVD or tape of the usual kind. Its music and text are stored on a cartridge. It does not display a video image but enables a video image to be displayed on a separate television screen connected to the unit by cable. It does not record sound or video images but allows them to be recorded on separate units connected by cable. The VJ Starz is a unit which captures a video image of the performers and transmits that image, together with another image in the form of text, to an outside unit for display. It is a unit in which sound is reproduced from the cartridge, sound is gathered from the microphones and the two sounds are mixed and modified before being transmitted to an outside unit or units for listening pleasure or for the purpose of recording. Its essential character is that of a karaoke machine.
The V31 is also a machine whose classification has been conceded by the CEO as 8543. I have much less information about it than I have about the VJ Starz. Having regard to that, I am satisfied that, although it appears a little more sophisticated than the VJ Starz, its essential character is also that of a karaoke machine. It is more sophisticated in the sense that it displays the lyrics on its own 5 inch black and white monitor rather than on the television screen. Having regard to the fact that it uses CD+G discs rather than the cartridges of the VJ Starz, it presumably gives the user access to a much more extensive range of karaoke recordings.
The V11 is not a machine in respect of which the parties have reached agreement. It is a machine that is, in some ways, more sophisticated than the V31. Part of its increased sophistication lies in the fact that it has a programmable CD/CD+G player capable of playing both CDs and CD+G discs. Another part lies in its built in speaker and amplifier and in its stereo audio outputs to enable the V11 to be connected to an external power amplifer and for connection to a home stereo system. Unlike the V31, though, it does not display the lyrics on its own monitor and they are transmitted to an external television monitor. Unlike both the VJ Starz and the V31, it does not have a camera to capture the image of the singers using its microphone(s) for display to an external television monitor.
Presumably, the V11 could be used to play CDs simpliciter and no more. It could be used to play CD+G discs for the purpose of merely listening to the music produced from them and for reading lyrics on a television screen. Neither use, however, represents the V11’s primary function or even its essential function. Its essential function is to enable amateur performers to sing songs to the accompaniment of pre-recorded music by providing the backing track and enabling the singer to follow the words on a screen as well as permitting them to record their efforts. Its essential character is that of a karaoke machine.
I reach the same conclusion in relation to the V14. The essential difference between it and the V14 is that it has a built in cassette recording feature that means that it can record “on board” rather than requiring transmission of the mixed audio signal to an external tape deck or other recording equipment. It does not have a camera but, as do the others, looks like a karaoke machine and it is a karaoke machine.
I accept that the Sony 590 and the Philips HiFi are able to be used for karaoke. The material I have been given about them shows that they also have other functions. Were I reviewing the tariff classification of those machines, it is doubtful that one of their functions, karaoke, would influence my finding as to their essential characteristics. Just as in this case, I would have to have regard to their essential character having regard to all of their functions. In this case, karaoke is what the machines are all about. Other features such as playing CDs and CD+G discs without using the input of the microphones and any ability to record audio are purely incidental to what the machines are intended and used for; namely karaoke machines.
Having characterised the subject goods, I must now construe the tariff classifications. According to Rule 1 of the Interpretation Rules, classification is to be determined according to the terms of headings and any relevant Chapter and Section Notes. This takes me back to Note 3 of the Notes to Section XVI. It speaks of two types of machine: “a composite machine… consisting of two or more machines fitted together to form a whole”; and a machine “… designed for the purpose of performing two or more complementary or alternative functions”. I will consider these two separately.
Note 5 to Section XVI gives its own definition of “machine” as meaning “… any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of Chapter 84 or 85.” Having regard to its ordinary meaning, a “machine” is “… a device with moving parts, and usually powered, designed to perform a particular task. …”.[57] Given the extended definition given to the word in Note 5, it is clearly intended to draw within its range a wide variety of equipment or devices. Whatever precise shades of meaning should be given to the word “machine”, I would regard each of the subject goods as a machine. Each is a device with moving parts that is powered and that is designed to perform a particular task and so is a machine in its ordinary meaning let alone equipment or even an appliance. However it is described, each is designed for a particular task i.e. to be a karaoke machine.
[57] Chambers
It is true that each of them comprises one or more parts that would, if packaged and presented on their own, would be a machine designed to perform a particular task. VJ Starz, for example, has a video camera among its parts. It could not, however, be described as a machine that consists of a machine that is a video camera and a machine that comprises the rest of its parts. That description would not accord with the reality that the video camera is but one of the items that is essential to enable the machine to do what it is intended to do i.e. be a karaoke machine. What the VJ Starz does is to allow amateur singers to take their vocals beyond the shower to the living room or beyond where they can be accompanied by music, see the lyrics and themselves on the television screen and, through external means, perhaps record their efforts for self-criticism. Karaoke is the “… the special purpose or task of a machine …”[58] and so the “function” of the VJ Starz. It is not that of a video camera or of an ability to reproduce sound from a cartridge through a television set. It is not intended to be, or used as, a sound reproducing apparatus as such. It is intended to reproduce sound and to mix it with the human voice. Adjustments can be made to the key and tempo and so it goes well beyond sound reproduction. All of the features are essential to its function as a karaoke machine.
[58] Chambers
I reach the same conclusion when I have regard to the remaining three subject goods. The V14, for example, has a cassette recording feature but that feature does not constitute a separate machine, however described, within the unit. There is only one unit forming one machine designed to perform a particular task. V11 is no different and nor is V31. Certainly, their features are slightly different and so the karaoke experience may be slightly different when each is used but the function or each remains the same; that of a karaoke machine.
The second type of machine referred to in Note 3 is that of a machine designed for the purpose of performing two or more complementary or alternative functions. The word “complementary” means “… serving as a complement to something” and “complement” means “something that completes or perfects; something that provides a needed balance or contrast. …”[59] “alternative” is “… said of, strictly speaking, two, but often used of more than two, possibilities: secondary or different, especially in terms of being less favourable.”[60] None of the subject goods is designed for the purpose of performing two or more complementary or alternative functions. They are designed for the purpose of serving one function and that is of being a karaoke machine. The fact that, in the case of the V14, it has a cassette recording feature is just that; a feature. It is not a special purpose or task of the machine so that it becomes a sound recording apparatus but a characteristic of this machine as a karaoke machine. The fact that the V11 has a built in speaker and amplifier and allows CDs to be played as well as CD+G discs does not mean that it is designed for the purpose of being a CD player or a sound reproduction unit.
[59] Chambers
[60] Chambers
In view of my conclusions, I do not consider that Note 3 to Section XVI applies in determining the classification of the subject goods. That takes me back to the Interpretation Rules. Rule 2(b) and so Rule 3 are not relevant as they are not mixtures or combinations. Rule 4 requires me to classify the subject goods under the heading appropriate to the goods to which they are most akin. When I do that, I conclude that they are most akin to those in heading 8543: “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this Chapter [85]”. These are much more akin than those described in headings 8519 or 8520 in whatever form. Within heading 8543, they should be classified to heading 8543.70.00 being “- Other” on the basis that they do not fall within the other sub-headings.
For these reasons, I:
1.set aside the decisions of the respondent dated 15 May 2006 and affirmed on 19 October 2006 in respect of:
Entry No.2E21971196B PWA No. 2M61288513N
Entry No.2M31810376K PWA No. 2M61288509C
Entry No. 2M32030289A PWA No. 2M61288512M
Entry No.2M33181780E PWA No. 2M61298503B
and
2.substitute decisions that the goods in each of the four entries be classified to heading 8543.70.00 in Schedule 3 of the CT Act being “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this Chapter - Other”.
I certify that the sixty three preceding paragraphs are a true copy of the reasons for the decision herein of
Deputy President S A Forgie,
Signed: .......................................................................
Jayne Haydon Associate
Date of Hearing 18 February 2008
Date of Decision 25 June 2008
Solicitor for the Applicant Mr L. Gross
Gross & Becroft
Counsel for the Respondent Mr R. Northcote
Australian Government Solicitor
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