Customs and excise quarterly update: August 2019

In this update we report on (1) revised guidance on the Customs Special Procedures for the Union Customs Code; (2) the consultation HMRC has opened into proposed changes to the rules for red diesel used in private pleasure crafts; and (3) the government’s programme to replace EU international agreements with bilateral agreements ready for the UK’s exit from the EU. We also comment on three recent cases relating to (1) whether HMRC has the power to permit temporary trading pending the determination of an appeal to the First-tier Tribunal; (2) excise wrongdoing penalties raised out of time; and (3) an appeal against an assessment for unpaid excise duty.

News

Changes to the Customs Special Procedures under the Union Customs Code

On 12 July 2019, HMRC published updated guidance on the Customs Special Procedures for the Union Customs Code, in Notice 3001. The Notice explains the generic aspects of the Customs Special Procedures under the Union Customs Code.  Read more

Diesel fuel used in private pleasure crafts

On 15 July 2019, HMRC opened a consultation on proposed changes to the rules for red diesel used in private pleasure craft, as a result of the judgment of the Court of Justice of the European Union (CJEU) in European Commission v United Kingdom (C-503/17), which require private pleasure crafts to use white diesel rather than red diesel.  Read more

Replacing EU International Agreements with Third Countries

On 17 July 2019, the Treasury published written statement HLWS1693, which details the work being undertaken by the government to replace EU Customs Cooperation and Mutual Administrative Assistance agreements with UK third country bilateral agreements, in preparation for the UK’s exit from the EU. The aim is to ensure that the UK can maintain the benefits of the EU international agreements it is currently party to.  Read more

Case reports

OWD – HMRC unable to permit temporary trading pending appeal

In OWD Ltd trading as Birmingham Cash and Carry (in Liquidation) and Anor v HMRC, the Supreme Court has held that HMRC does not have power, under section 88C, Alcohol Duties Liquor Act 1979 (ALDA), or section 9, Commissioners for Revenue and Customs Act 2005(CRCA), to permit temporary trading pending the determination of an appeal to the First-tier Tribunal (FTT) against HMRC’s refusal to grant approval under the Alcohol Wholesalers Registration Scheme (AWRS).  Read more

JC Harness – excise wrongdoing penalties dismissed as imposed out of time

In JC Harness & Co and DDS Supplies Ltd v HMRC, the FTT discharged excise wrongdoing penalties, as they had been raised out of time.  Read more

Quinn – lorry driver had no knowledge of whether excise duty had been paid

In Gerald Quinn v HMRC, the FTT allowed an appeal by a lorry driver against an assessment for unpaid excise duty in relation to a large consignment of wine that he had driven from France to England, due to a lack of actual or constructive knowledge on his part as to whether duty had been paid.  Read more