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A LOCAL importer has won a major tax dispute against the Comptroller of Customs and Excise after the Tax Appeal Board ruled that the customs authority wrongfully reclassified a shipment of paint ingredients which led to a hefty tax bill.

Automotive and Industrial Supplies Ltd challenged the reclassification of its imported product, Auto Resurfacing Components, which are used to make paint but are not deemed as paint themselves. Customs had changed the classification code, resulting in additional duties and taxes of $57,475.42.

The company argued that the product should be categorised as “other pigments dispersed in colourant,” which carries no extra duty. Customs classified it instead as “automotive paint,” which has a 15 per cent tax.