Close, but not caviar: Sushi King wins tax dispute over imported fish roe

The High Court in Malaysia has ruled that the seasoned fish eggs commonly used as sushi toppings, such as tobiko, masago, and mentaiko, are not luxury caviar substitutes under customs law. The Customs Department's appeal against a decision favoring the restaurant chain Sushi King Sdn Bhd was dismissed. The court determined that the preparation methods of the fish eggs do not classify them as caviar substitutes, which would attract an 8% tariff under the Customs Duties Order 2017.

Customs argued that cleaning, seasoning, colouring, and freezing the roe transformed them into luxury alternatives, but the judge disagreed, stating that preparation alone does not change the nature of the fish eggs. The judge emphasized that caviar substitute is a specific category of fish roe based on its origin, consumption methods, and processing, which aims to mimic sturgeon caviar.