In Cloud B v HMRC [2014] UKFTT 997 (3 September 2014) the FTT found that cuddly toys fitted with a sound box must still be classified as cuddly toys.
The issue was how two soft children’s toy animals which contained a sound box that produced soothing sounds designed to help babies and young children sleep should be classified for customs purposes.
The toys fell within the category of ‘toys representing animals or non-human creatures’. That category was subdivided into two categories. If the toys were ‘stuffed’ animals they were subject to 4.7% duty; but if they fell into the ‘other’ category no duty was payable. Finally if – taking account of their purpose rather than their appearance – the toys were categorised as ‘electronic devices’ 4.7% duty was payable.
The two toys a stuffed giraffe and a stuffed sheep were...
