Marco Trading Ltd v Revenue & Customs [2011] UKFTT 646 (TC) (05 October 2011)

Marco Trading Ltd v Revenue & Customs [2011] UKFTT 646 (TC) (05 October 2011)

The Tribunal found that HMRC failed to prove on the balance of probabilities that the Form A certificates were forgeries, based on the handwriting expert's evidence and lack of direct verification. The Tribunal accepted that the goods originated in Bangladesh and that Marco acted in good faith, but found that the...

Source-derived case information.

Citation
[2011] UKFTT 646 (TC)
Parties
Appellant: Marco Trading Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
05 October 2011
Procedural Posture
Customs Duty Appeal / First Tier Tribunal (tax), Consolidated Appeals Against Post Clearance Demands
Outcome
Appeal allowed in part
Legal Topics
Preferential Tariff Treatment, Certificate of Origin, Direct Transport Rule, Post Clearance Demand, Waiver and Remission of Duty, Forgery, Good Faith, Burden of Proof
Customs Law Tax Law European Union Law Preferential Tariff Treatment Certificate of Origin Direct Transport Rule Post Clearance Demand Waiver and Remission of Duty +3 more

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Parties

Marco Trading Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Customs Duty Appeal / First Tier Tribunal (tax), Consolidated Appeals Against Post Clearance Demands

Legal Issues

  1. 1 Whether Marco Trading Ltd was entitled to preferential duty rates under the GSP for textile imports from Bangladesh
  2. 2 Whether the Form A certificates of origin and supporting documentation were forgeries or invalid
  3. 3 Whether the direct transport rule was satisfied

Ratio Decidendi

The Tribunal found that HMRC failed to prove on the balance of probabilities that the Form A certificates were forgeries, based on the handwriting expert's evidence and lack of direct verification. The Tribunal accepted that the goods originated in Bangladesh and that Marco acted in good faith, but found that the direct transport rule was not satisfied for three invoices due to insufficient documentation. Waiver relief under Article 220(2)(b) was not available due to lack of evidence of error by customs authorities, but remission under Article 239 was allowed as a special situation with no obvious negligence by Marco.

Court Disposition

Appeal allowed in part

Orders

  • Post-clearance demands set aside except for three invoices where direct transport rule not satisfied
  • Waiver relief under Article 220(2)(b) not allowed