Hansen v Comptroller-General of Customs

Hansen appealed to the Full Federal Court against a decision of the Federal Court of Australia which affirmed a decision of the Comptroller-General of Customs. The dispute concerned the classification of certain goods imported by Hansen, specifically whether they were "goods of a kind ordinarily used for domestic purposes" under Item 6305.90.00 of Schedule 3 to the Customs Tariff Act 1987 (Cth) (the Act), which attracted a lower rate of duty, or fell under another classification attracting a higher duty.

The primary legal issue before the Full Federal Court was the proper interpretation of the phrase "goods of a kind ordinarily used for domestic purposes" as it applied to the imported goods. This required the court to consider the ordinary meaning of "domestic purposes" and the criteria for determining whether goods were "of a kind ordinarily used" for such purposes, particularly in circumstances where the goods might have other uses or be used in commercial settings.

The Court reasoned that the classification of goods under the Customs Tariff Act is a question of fact, but the interpretation of the tariff item itself is a question of law. It held that the phrase "domestic purposes" referred to purposes within a private dwelling or household. The court further clarified that "ordinarily used" did not require the goods to be exclusively or predominantly used for domestic purposes, but rather that such use was a common or usual use. Applying this to the facts, the court found that the imported goods, which were industrial cleaning machines, were not of a kind ordinarily used for domestic purposes, as their primary and common use was in commercial or industrial settings, despite the theoretical possibility of their use in a very large domestic establishment.

The appeal was dismissed, and the decision of the Federal Court was affirmed.