Customs and excise quarterly update August 2018

In this update we report on changes to gaming duty accounting periods, HMRC’s policy paper on tobacco duty on heated tobacco and an amendment to the Export (Penalty) Regulations 2003. We also comment on three recent cases relating to the customs classification of Beyblades, excise duty assessment time limits and restoration of seized tobacco.

News

Changes to gaming duty accounting periods and administration of the tax

On 6 July 2018, HMRC published a policy paper in relation to changes to gaming duty accounting periods to bring gaming duty into line with the administration of other gambling duties. Read more.

Tobacco duty on heated tobacco

On 6 July 2018, HMRC published a policy paper introducing “heated tobacco” as a new category of tobacco product in the Tobacco Products Duty Act 1979 (TPDA). The duty rate for heated tobacco will be set at Budget 2018. Read more.

Amendments to the Export (Penalty) Regulations 2003

On 24 April 2018, HMRC published a policy paper in relation to amendments to the Export (Penalty) Regulations 2003 (the Regulations) to ensure UK law relating to civil penalties is up to date with EU legislation following the introduction of the Union Customs Code, which replaced the Community Customs Code on 1 May 2016. Read more.

Cases

Hasbro European Trading BV – customs classification of a spinning top toy

In Hasbro European Trading BV v Revenue and Customs Commissioners, the Court of Appeal has allowed the taxpayer’s appeal against the decision of the Upper Tribunal (UT), and concluded that spinning tops known as “Beyblades” are correctly classified as “articles for … table or parlour games” within Combined Nomenclature (CN) heading 9504 and not as “other toys” under heading 9503. Read more.

Lithuanian Beer – excise duty assessment time limits

In Lithuanian Beer Ltd v Revenue & Customs Commissioners, the Court of Appeal has held that the level of knowledge required under section 12(4)(b), Finance Act 1994 (FA), for the purpose of limitation on HMRC’s power to issue an assessment, is actual knowledge rather than constructive knowledge. Read more.

Maciej Kotarski – restoration of whole leaf tobacco

In Maciej Kotarski v the Director of Border Force, the First-tier Tribunal (FTT) has allowed the taxpayer’s appeal against the decision by Border Force (BF) not to restore seized whole leaf tobacco on the basis that, on the evidence before it, legal ownership was established. Read more.