Widget UK Ltd v Revenue & Customs [2013] UKFTT 147 (TC) (13 February 2013)

Widget UK Ltd v Revenue & Customs [2013] UKFTT 147 (TC) (13 February 2013)

The MDF payments were conditional, not contractually guaranteed at the material time, and were made for marketing activities benefiting the appellant’s customers, not as a reduction in the price paid or payable for the imported goods. There was no legal entitlement to a price reduction at the time of importation, and thus the customs value could not be reduced by the MDF credits. The appellant failed to discharge the evidential burden to show entitlement to repayment of import duties.

Citation
[2013] UKFTT 147 (TC)
Parties
Appellant: Widget UK Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
13 February 2013
Procedural Posture
Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
Customs Valuation, Transaction Value, Marketing Costs, Repayment of Import Duties, Discounts and Price Adjustments
Customs Law Tax Law European Union Law Customs Valuation Transaction Value Marketing Costs Repayment of Import Duties Discounts and Price Adjustments

Case Brief

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Parties

Widget UK Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether marketing costs (MDF credits) can be deducted or operate as a credit reducing the price paid or payable for customs valuation purposes
  2. 2 Whether there was a retrospective price adjustment entitling the appellant to repayment of import duties

Ratio Decidendi

The MDF payments were conditional, not contractually guaranteed at the material time, and were made for marketing activities benefiting the appellant’s customers, not as a reduction in the price paid or payable for the imported goods. There was no legal entitlement to a price reduction at the time of importation, and thus the customs value could not be reduced by the MDF credits. The appellant failed to discharge the evidential burden to show entitlement to repayment of import duties.

Court Disposition

Appeal dismissed

Orders

  • The Commissioners’ refusal of the appellant’s claim for repayment of customs duty is upheld.