Ninth arbitration court of appeal on Monday upheld the decision of subordinate arbitration Tribunal, which dismissed the claim of LLC “Apple Rus”, the Russian division of Apple, demanding to recognise illegal three decisions of the Central customs administration of the FCS of Russia to change the customs classification of “smart hours” Apple Watch.
On the court’s website reported that the appeals court dismissed the appeal “eppl Rus” on the decision of the Moscow arbitration court, which then entered into force.
“Daughter” Apple asked to recognize the illegal decision of the Respondent on the preliminary classification of “smart hours” according to the FEACN of the cu from 13 November 2015, which these devices have been classified as a wrist watch, for the import of which customs rate comes to 10%, not as devices for data transfer, the import of which the import duty is exempt.
As explained by the representatives of the FCS, the device was assigned to watch as one of the basic components of the Apple Watch is the timing, however, he does not have to be in the form of a watch. According to Apple representatives, the device is multifunctional, and to highlight its main component is impossible, rather, it should apply to microprocessors.
The court supported the position of the customs authority, indicating that Apple Watch is able to perform different, independent from each other function. While it is not possible to distinguish from them main and significant role defining its purpose, the court noted. As pointed out by the court of first instance in the decision, it is well known that the Apple Watch is worn on wrist, consists of a strap/bracelet and the dial/screen, shows time and has an appropriate name. The word “watch” is translated from English as a clock. On the customs correctly classified the goods code “wrist watch powered by electricity, with or without a built-in stopwatch,” reads the court decision.
Due to the fact that the FCS began to charge a fee on “Apple” devices as with ordinary watches, the Apple Watch before the New year has risen in price in retail. December 11, Apple has raised the price of the Apple Watch 7-17% depending on the model.