Apple fails to remove UK import duty for Apple Watch sport bands

The legal battle between UK tax authority HM Revenue and Customs (HMRC) and Apple relates to how the tax authority classifies the strap of an Apple Watch, compared to the rest of the device. Products entering the UK are usually subjected to import duties ranging between 0 percent and 17 percent, with electronics typically deemed as "duty free" goods that avoid the extra tax.

While the Apple Watch does qualify as duty free, HMRC believed the sports wristband of the Apple Watch isn't a core part of the device, making it an accessory. The Telegraph reports HMRC gave the bands a classification of "other plastic," making it subject to a duty of 6.5 percent.

Apple appealed against this classification with the main argument revolving around certain hardware elements failing to work as designed if the strap is not in use. The heart rate monitoring and fitness tracking functions are hampered when the Apple Watch is not worn on the wrist, due to the need for the sensor on the back to be close to the skin.