Customs and excise quarterly update November 2018

In this update we report on HMRC’s guidance on how to prepare for the Customs Declaration Service, the launch of the Customs Declaration Service and HMRC’s guidance on trading with the EU in the event of a no-deal Brexit. We also comment on three recent cases relating to the calculation of gaming duty, tariff classification of seasoned chicken meat and mobility scooters.

News

Preparation for the CDS

On 11 July 2018, HMRC published guidance on how to prepare for the introduction of the Customs Declaration Service (CDS) and how to make declarations under the new system. Read more.

Launch of the CDS

On 16 August 2018, HMRC executed the first software release for the CDS. The new service provides an updated system for importers and exporters completing customs declarations when trading outside the EU. Read more.

Guidance on trading with the EU if there is a no-deal Brexit

On 23 August 2018, HMRC published guidance on trading with the EU in the event the UK leaves the EU without a Brexit deal. Notwithstanding that it is generally considered to be in the mutual interests of both the UK and the EU to secure a negotiated outcome, HMRC has issued this guidance in order to assist businesses in a “no-deal” scenario. Read more.

Cases

London Clubs Management Limited – non-cash inducements have no value for the purpose of gaming duty

 In HMRC v London Clubs Management Limited, the Court of Appeal has dismissed HMRC’s appeal and held that non-cash inducements given to customers by casinos have nil value for the purpose of gaming duty under section 11(10), Finance Act 1997 (FA 1997). Read more.

Invicta Foods Limited – tariff classification of chicken breasts

In Invicta Foods Limited v HMRC, the Court of Appeal has allowed the taxpayer’s appeal and held that imported chicken breasts should be classified under Chapter 16 of the Combined Nomenclature (CN). Read more.

Invamed Group Limited – customs classification of electric mobility scooters

 In The Commissioners for Her Majesty’s Revenue and Customs v Invamed Group Limited and others, the UT has allowed HMRC’s appeal against the decision of the FTT, and held that certain electric mobility scooters are properly classified as vehicles “principally designed for the transport of persons” within CN heading 8703 and not as “carriages for disabled persons” under heading 8713. Read more.