In this month’s case of Amoena (UK) Ltd the Supreme Court considered whether Customs Duty was payable on a mastectomy bra imported by the taxpayer. For a change, this report is not on VAT.
It was decided that no customs duty was payable on such imports.
The issue was whether the bra should be classified via the Combined Nomenclature as a “brassiere” and as such subject to duty at 6.5%, or as an “‘orthopaedic appliance” in which case no Customs Duty would be payable.
The evidence presented by on behalf of the taxpayer was that the bra is an “artificial part of the body” or “other appliance worn to compensate for a defect or disability” such that it was an orthopaedic appliance. The Supreme Court decided in the taxpayer’s favour. This case has progressed along the appeal route and the decisions have swayed back and forth.
Initially, the First Tier Tribunal (FTT) found that the correct classification should be as a brassiere. The Upper Tribunal reversed the decision and ruled that no Customs Duty was payable. The Court of Appeal then upheld the FTT’s initial decision that Customs Duty was payable at import. Finally, the Supreme Court unanimously allowed the appeal.
If nothing else, this case demonstrates the need for perseverance and the value of fighting for what you believe. I think the correct (and most beneficial for a lot of people) result was reached.
Full case here