[1] Requirements for falling under the category of teas under Article 50(1) and Article 49 of the former Customs Act, and whether the said category constitutes the said category of teas even in cases where goods are distributed and used for other purposes after being declared and imported as “the class of teas” under the Tariff Schedules No. 0902 of the Tariff Schedules (affirmative)

[2] The case holding that green tea and red tea declared as "the tea" in the process of importing them for bath bath purposes constitute "the tea" under Article 50 (1) and Article 49 of the former Customs Act, which are "the tariff schedule No. 0902 of the Tariff Schedules No. 0902

[1] The main sentence of Article 16 of the former Customs Act (amended by Act No. 8136 of Dec. 30, 2006) provides that “Customs duties shall be imposed according to the nature and quantity of the goods at the time of filing an import declaration.” Meanwhile, Articles 50(1) and 49 of the same Act provide for the tariff rate on the tariff item number 0902 of the Tariff Schedules pursuant to Articles 50(1) and 49 of the same Act. In a case where a tariff classification is made for general purposes based on quality, the goods to fall under the above “Class” shall be deemed drinking as at the time of filing an import declaration. Unless there are special circumstances, the said “Class” shall apply to the said “Class.” Even if an importer reported the imported goods suitable for drinking as “Class” and distributed and used them by taking advantage of bath, etc. after importing them, such circumstance alone does not change.

[2] The case holding that the green tea and the red tea declared as "the tea" as "the tea" in the process of importing them for bath bath purposes constitute "the tea" under Article 50 (1) and Article 49 of the former Customs Act (amended by Act No. 8136 of Dec. 30, 2006) on the grounds that they are suitable for drinking as at the time of import declaration and their original usage are the same as melt tea for drinking, etc.

[1] Articles 16, 49, and 50(1) of the former Customs Act (amended by Act No. 8136 of Dec. 30, 2006) / [2] Articles 16, 49, and 50(1) of the former Customs Act (amended by Act No. 8136 of Dec. 30, 2006)

Defendant

Defendant

Attorney Kim Hyun-sung

Busan High Court Decision 2006No457 decided Dec. 28, 2006

The appeal is dismissed.

The grounds of appeal (to the extent of supplement in case of supplement submitted after the expiration of the period) are examined.

The main text of Article 16 of the former Customs Act (amended by Act No. 8136, Dec. 30, 2006; hereinafter “the Act”) provides that “Customs duties shall be imposed according to the nature and quantity of the goods at the time of filing an import declaration.” Articles 50(1) and 49 of the Act provide that customs duties imposed on imported goods shall be determined in accordance with the attached Schedules of Tariff (hereinafter “Tax Rates”). Accordingly, Article 0902 of the Tariff Schedules provides that tariff rates on “the tea(s)” shall be determined in accordance with the attached Schedules of Tariff. In a case where a tariff classification is conducted for general purposes based on quality, goods must be suitable for drinking as at the time of filing an import declaration, and so long as the goods are fit for drinking, barring any special circumstances, it is appropriate to deem that the goods are “the tea(s)”, and thus, even if an importer reported the goods to be drinking to be distributed and used after importing them as a tea(s).

According to the reasoning of the judgment below and the records, the green tea and yellow tea in this case are suitable for drinking and whose original usage is not different from those of drinking tea in light of their nature, function, form, and manufacturing method as at the time of import declaration, and the defendant voluntarily filed a declaration as to the green tea and yellow tea in this case as "type of tea" in Item No. 0902 of the Tariff Schedules at the time of import, and if the facts are identical, the judgment of the court below that the green tea and yellow tea in this case constitute "type of tea" in Item No. 0902 of the Tariff Schedules is just, and there are no errors in the misapprehension of legal principles as to the interpretation and application of Article 16 of the Act and the burden of proof.

Unlike the above, we cannot accept the grounds of appeal that the Defendant, as a matter of course, imported the green tea and red tea of this case for the purpose of adding them to bath bath in substance, and that the green tea and red tea of this case fall under the “other bath products” under Item No. 3307 of the Tariff Schedules.

Therefore, the appeal is dismissed. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Shin Hyun-chul (Presiding Justice)