Customs and excise quarterly update February 2020

In this update we report on the government’s plans to (1) introduce 10 new freeports; (2) introduce import controls; and (3) its consultation into the UK’s tariff policy following the UK’s departure from the EU. We also comment on three recent cases relating to (1) time limits to issue a post-clearance demand under the Community Customs Code; (2) tariff classification of fluid and blanket warming cabinets used in hospitals; and (3) what constitutes “complicity” in the context of smuggling.

News

Consultation on freeports
On 10 February 2020, the Department for International Trade launched a consultation into the government’s proposed freeport policy, which includes tariff flexibility and customs facilitations.  Read more

Government plans to introduce import controls
On 10 February 2020, the government published a press release regarding its plans to introduce import controls on goods being imported from the EU after the end of the transition period on 31 December 2020.  Read more

Consultation opened regarding the UK’s new tariff policy
On 6 February 2020, the Department for International Trade launched a public consultation into the UK’s tariff policy following the UK’s departure from the EU.  Read more

Case reports

FMX – Supreme Court considers limitation issues for custom duty post-clearance demands
In FMX Food Merchants Import Export Co Ltd v HMRC [2020] UKSC 1, the Supreme Court held that HMRC, when issuing Post Clearance Demands, can rely on Article 221(4) of the Community Customs to displace the normal three-year time limit, even though the UK had not enacted a finite alternative time limit, but the demand must be issued within a reasonable time.  Read more

Central Medical Supplies – classification of fluid and blanket warming cabinets used in hospitals
In Central Medical Supplies Ltd v HMRC [2019] UKFTT 651 (TC), the First-tier Tribunal (FTT) found that fluid and blanket warming cabinets used in hospitals should be classified, under customs heading 9402 of the Combined Nomenclature (CN), as medical furniture and therefore no customs duty is payable on importation.  Read more

Jacek Szymanski – what constitutes “complicity” in the context of smuggling
In Jacek Szymanski (T/A Everpol) v Director of Border Revenue [2019] UKUT 343 (TCC), the Upper Tribunal (UT) dismissed an appeal brought against a decision of the First-tier Tribunal (FTT), and found that for the purposes of Border Force’s restoration policy for seized commercial vehicles (the Restoration Policy), turning a blind eye to suspicious circumstances would constitute “complicity” in the context of smuggling.  Read more