Commissioner for the South African Revenue Service v Terraplas South Africa (Pty) Ltd

Terraplas South Africa (Pty) Ltd imported plastic interlocking tiles made of high-density polyethylene, used to temporarily cover and protect turf surfaces in sports stadia during non-sporting events. Terraplas entered the goods for home consumption under a tariff heading attracting lower import duty. The Commissioner for the South African Revenue Service determined that the tiles should instead be classified under a different tariff heading attracting a higher rate of duty. After internal appeals and alternative dispute resolution failed, Terraplas appealed to the North Gauteng High Court, which upheld Terraplas’s classification. SARS then appealed to the Supreme Court of Appeal.

The appeal by the Commissioner for the South African Revenue Service was upheld with costs. The order of the High Court was set aside and replaced with an order dismissing Terraplas’s appeal against the Commissioner’s tariff determination, with costs including the costs of two counsel.

The case reaffirms authoritative principles governing tariff classification in South African customs law, particularly the primacy of tariff headings and contextual interpretation under the Harmonized System. It clarifies that temporary turf-protection systems are not 'floor coverings' for customs purposes and confirms that the novelty of an article is irrelevant to classification. The judgment strengthens consistency and predictability in customs tariff determinations.