Key Facts
- •Uflex Europe Limited imported plastic-coated polypropylene pet food bags.
- •HMRC classified the bags under commodity code 6305, resulting in a 7.2% customs duty.
- •Uflex argued for classification under code 3923, resulting in 0% duty.
- •The customs duty at stake was £937,025.61, plus import VAT of £194,564.06.
- •Uflex also claimed retrospective 0% duty due to late presentation of GSP certificates.
- •The bags were made of woven polypropylene strips coated with plastic.
Legal Principles
General Interpretative Rules (GIRs) for customs classification.
Council Regulation 2454/93, Article 97K
Classification based on objective characteristics and properties.
Build-A-Bear Workshop UK Holdings Ltd v HMRC [2022] EWCA Civ 825
Specific provisions prevail over general provisions (lex specialis derogat legi generali).
RCI Europe v HMRC C-37/08
Harmonised System Explanatory Notes (HSENs) are non-binding aids to interpretation.
Build-A-Bear at [15 (7)]
Rules for late submission of GSP Proof of Origin certificates.
Council Regulation 2454/93, Article 97n
Tribunal jurisdiction over customs duty decisions.
Section 13 A(2)(a) Finance Act 1994
Outcomes
Appeal allowed regarding classification.
The bags fall under heading 3923 due to the combined effect of Chapter 39 and Section XI notes creating a mutually exclusive regime. Note 1(h) to Section XI is more specific than Chapter 39 Notes.
Appeal dismissed regarding GSP certificates.
The Appellant's failure to submit GSP Forms A within the timeframe, due to an incorrect initial classification, did not constitute 'exceptional circumstances' under Article 97n(2).