Customs and excise quarterly update November 2019

In this update we report on (1) the new customs legislation if the UK leaves the EU without a deal; (2) steel safeguard quotas; and (3) the recent deadline extension for customs authorisations made indirectly. We also comment on three recent cases relating to (1) civil evasion penalties; (2) the meaning of “holding” goods; and (3) tariff classification.

News

Movement of goods if the UK leaves the EU without a deal
On 7 October 2019, HMRC published an impact assessment on the new customs legislation concerning businesses trading goods across the UK-EU border in the event of a no deal Brexit. Read more

Steel safeguard quotas
On 29 October 2019, HMRC published guidance on imposed definitive safeguard measures on imports of certain steel products. Read more

Extension of deadline for customs authorisations
On 30 October 2019, HMRC published updated guidance extending the deadline by which it will no longer accept declarations which are made indirectly by agents on their customers’ behalf, to 31 January 2020. Read more

Case reports

Auto-Kit International Ltd – customs civil evasion penalty overturned as no dishonesty
In Auto-Kit International Ltd v HMRC [2019] UKFTT 534 (TC), the First-tier Tribunal (FTT) overturned a customs civil evasion penalty imposed under section 25, Finance Act 2003 (FA03), because HMRC had not successfully established that the company director’s mental state was dishonest. Read more

Dawson’s (Wales) Ltd – meaning of “holding” goods
In Dawson’s (Wales) Ltd v HMRC [2019] UKUT 0296 (TCC), the Upper Tribunal (UT) decided that, in the absence of any evidence that establishes an earlier excise duty point, the person “holding” goods at the time that it is established that the goods are being held at a specific location, but are no longer held pursuant to a duty suspension arrangement, is chargeable to unpaid duty in respect of those goods. Read more

Bemis Ltd – tariff classification of toilet seats
In Bemis Ltd v HMRC [2019] UKFTT 538 (TC), the FTT overturned a decision by HMRC classifying the appellant’s product as plastic under tariff code 3922 20 00 00.  Read more