Asda Stores Ltd v The Commissioners for Her Majesty's Revenue And Customs

Asda Stores Ltd v The Commissioners for Her Majesty's Revenue And Customs

The customs value must be the total payment made by Asda to the clothing supplier for the imported goods, without deduction for the rebate received from the hanger suppliers, as the rebate does not fall within any permissible deduction under Articles 32 or 33 of the Code. The clear wording of Article 29(3)(a) prevails, and the alternative valuation methods are not available since the transaction value can be determined.

Parties
Appellant: Asda Stores Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
27 March 2014
Procedural Posture
Civil Appeal / Appeal From Upper Tribunal (tax and Chancery Chamber)
Outcome
Appeal dismissed
Legal Topics
Customs Valuation, Transaction Value Method, Import Duties, Interpretation of EU Customs Code
Customs Law Tax Law European Union Law Customs Valuation Transaction Value Method Import Duties Interpretation of EU Customs Code

Case Brief

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Parties

Asda Stores Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Civil Appeal / Appeal From Upper Tribunal (tax and Chancery Chamber)

Legal Issues

  1. 1 Whether the customs value of imported goods should be reduced by a rebate received by the importer from a third-party supplier under the EU Customs Code.
  2. 2 Whether the transaction value method under Article 29 of the Community Customs Code allows for deduction of rebates not expressly provided for in Articles 32 or 33.
  3. 3 Whether the sale of hangers was direct from hanger suppliers to Asda or via the clothing supplier for customs valuation purposes.

Ratio Decidendi

The customs value must be the total payment made by Asda to the clothing supplier for the imported goods, without deduction for the rebate received from the hanger suppliers, as the rebate does not fall within any permissible deduction under Articles 32 or 33 of the Code. The clear wording of Article 29(3)(a) prevails, and the alternative valuation methods are not available since the transaction value can be determined.

Court Disposition

Appeal dismissed

Orders

  • Appeal from the Upper Tribunal dismissed.