Lewis Stores (Pty) Ltd imported pots and pans marketed as 'Gourmet Gold Cookware Set'. The hollowware (pots and pans) themselves were made entirely of stainless steel with no gold plating. The handles and lid knobs were made of bakelite and were partly gold-plated, though the plating was very thin and dim. The gold mass constituted approximately 0.0008% of the total mass, covering roughly 10% of the external surface area and 5% of the total surface area. The packaging emphasized the stainless steel nature of the products. A dispute arose concerning the proper tariff classification of these goods under Schedule 1 of the Customs and Excise Act 91 of 1964, which would determine the applicable customs duty rate - either 30% (for hollowware not plated with precious metal) or 20% (for other items).
The appeal was dismissed with costs, including the costs of two counsel. The decision of Conradie J in the court below was confirmed. The imported pots and pans were classified under tariff heading 7323.93.20 as 'Hollowware for kitchen or table use (excluding those plated with precious metal)' attracting a customs duty rate of 30%.
For purposes of customs tariff classification under the Customs and Excise Act 91 of 1964, goods cannot be classified as 'plated with precious metal' when only ancillary components (handles and knobs) bear plating while the essential article (the hollowware itself) is unplated. The ordinary meaning of 'plated' requires that the article be covered or coated, and unless the unplated area is insignificant, a product cannot properly be said to be plated. Under the Brussels Explanatory Notes, handles and other accessories fitted to articles do not change the character of the primary material of the essential article. In customs classification, it is the character of the essential article, not its ancillaries, that determines the proper tariff heading.
Schutz JA made observations about the subjective impression an ordinary person would have upon seeing the products, stating that he would not have thought to call them 'gold-plated' and would have been 'offended' to receive such a product if he had purchased it as a gold-plated pot. The Court also noted, without deciding, complicated arguments concerning the operation of section 47(11) of the Act as it existed in 1998, and specifically warned that Conradie J in the court below should not be seen as having decided anything beyond the tariff classification issue itself, given the parties' agreement below that they were arguing an appeal against a determination, even though the importer contended on appeal that no determination had actually been made by Customs.
This case establishes important principles for customs tariff classification in South African law, particularly regarding the interpretation of 'plated with precious metal'. It clarifies that for goods to be classified as plated with a precious metal, the plating must cover the essential article itself, not merely ancillary components like handles or knobs. The judgment reinforces the hierarchy of interpretative tools in customs classification: headings and notes are paramount, followed by Brussels Explanatory Notes (which must be conformed to but are not peremptory), and the three-stage classification process. The case demonstrates the court's approach to giving ordinary meaning to tariff descriptions and refusing to extend classification based on minimal or peripheral plating. It also provides guidance on distinguishing between essential articles and mere accessories or parts in determining the character of goods for customs purposes.