KC Engineering Ltd v Revenue & Customs [2012] UKFTT 440 (TC) (05 July 2012)

KC Engineering Ltd v Revenue & Customs [2012] UKFTT 440 (TC) (05 July 2012)

The appellant failed to implement adequate systems to ensure timely submission of C99 bills of discharge as required by the Community Customs Code and Implementing Regulation. The requirements were not complex, the appellant had sufficient experience, and the failures amounted to obvious negligence. There was no evidence of HMRC policy change or conduct excusing non-compliance. Customs debts were properly incurred.

Citation
[2012] UKFTT 440
Parties
Appellant: K C Engineering Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
05 July 2012
Procedural Posture
Customs Duty Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeals dismissed
Legal Topics
Inward Processing Relief, Customs Duty, Import VAT, Bills of Discharge, Obvious Negligence, Community Customs Code, Implementing Regulation, Post Clearance Demand
Customs Law Tax Law European Union Law Inward Processing Relief Customs Duty Import VAT Bills of Discharge Obvious Negligence +3 more

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Parties

K C Engineering Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Customs Duty Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether failure to lodge C99 bills of discharge within the relevant time limit constitutes 'obvious negligence' under Article 204 Community Customs Code and Article 859 of the Implementing Regulation
  2. 2 Whether customs debt is incurred as a result of such failure
  3. 3 Whether HMRC policy or conduct excused non-compliance

Ratio Decidendi

The appellant failed to implement adequate systems to ensure timely submission of C99 bills of discharge as required by the Community Customs Code and Implementing Regulation. The requirements were not complex, the appellant had sufficient experience, and the failures amounted to obvious negligence. There was no evidence of HMRC policy change or conduct excusing non-compliance. Customs debts were properly incurred.

Court Disposition

Appeals dismissed

Orders

  • Appeals MAN/08/7064, MAN/08/7065, MAN/08/7078, and TC/2010/05815 are dismissed.