Commissioner for the South African Revenue Service v Coltrade International CC

Coltrade International CC imported coconut milk, coconut cream and coconut powder into South Africa. For several years SARS classified these products under tariff heading (TH) 2008.19 of Schedule 1 to the Customs and Excise Act 91 of 1964, which attracts a particular customs duty. In 2012 SARS changed its view, determining that coconut milk (and later the related products) should instead fall under the residual tariff heading TH 2106.90.90, resulting in higher duties and a demand for additional customs payments. Coltrade appealed the tariff determinations to the Gauteng Division of the High Court under s 47(9)(e) of the Act, which held that TH 2008.19 was the correct classification. SARS then appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs. The decision of the Gauteng Division of the High Court was upheld, confirming that coconut milk, coconut cream and coconut powder fall under tariff heading TH 2008.19.

This case is significant for South African customs and excise law as it clarifies the correct approach to tariff classification under the Customs and Excise Act and the Harmonised System. It reinforces that classification depends on the objective characteristics and essential character of goods, not merely on their form (such as being liquid or powdered). The judgment provides authoritative guidance on interpreting tariff headings and explanatory notes, particularly in relation to prepared foodstuffs and agricultural products.