Customs and excise quarterly update

In this update we report on the government’s consultation on Gaming Duty Accounting Periods; the Licensing of Tobacco Manufacturing Machinery; and the European Commission’s consultation on amendments to guarantees. We also comment on three recent cases involving customs classification; excise duty drawback; and excise duty liability on persons with no actual or constructive knowledge of unpaid duty.

News

Consultation on gaming duty accounting periods

On 9 April 2018, the government published a consultation document in relation to reform of gaming duty accounting periods to bring the administration of gaming duty more into line with other gambling duties.

Licensing of tobacco manufacturing machinery

On 25 January 2018, the government announced a measure that will give it additional powers to tackle the evasion of excise duty on tobacco products through the control of tobacco manufacturing machinery.

European Commission amendment to the Union Customs Code regarding guarantees

The European Commission has requested feedback in relation to a draft delegated regulation amending Delegated Regulation (EU) 2015/2446 (the Regulation) regarding the conditions required for a reduction of the level of the comprehensive guarantee and the guarantee waiver.

Cases

Honeywell Analytics – classification of a gas monitoring device
In HMRC v Honeywell Analytics Limited, the Court of Appeal has held that the Upper Tribunal (UT) erred in law in setting aside the First-tier Tribunal’s (FTT) finding that the principal use of a gas monitoring device was an alarm within Combined Nomenclature (CN) heading 8531 8095 90 and not a measuring device within CN heading 9026 8020 90.

Hammonds of Knutsford – Court of Appeal rejects excise duty drawback claim

In The Queen (on the Application of Hammonds of Knutsford Plc) v HMRC, the Court of Appeal has dismissed the taxpayer’s appeals upholding the UT’s decision in favour of HMRC who had rejected an exporter’s drawback claim because it had breached the “inspection facility rule”, pursuant to the Excise Goods (Drawback) Regulations 1995 (the 1995 Regulations).

Martyn Glen Perfect – Upper Tribunal confirms haulier not liable for payment of unpaid excise duty

In Revenue & Customs Commissioners v Martyn Glen Perfect, the UT has found that a lorry driver was not liable to pay unpaid excise duty on beer he transported to the UK, when he was unaware that the relevant paperwork was false and that the beer was part of a smuggling operation.