Xerox Ltd v Revenue & Customs [2010] UKFTT 527 (TC) (22 October 2010)

Xerox Ltd v Revenue & Customs [2010] UKFTT 527 (TC) (22 October 2010)

The Tribunal found that the copying function of the machines was equivalent in importance to the printing and scanning functions, and thus the machines were not 'of a kind solely or principally used in an automatic data processing system' within Note 5(B) to Chapter 84 of the CN. However, applying GRI 3(b), the printing module (IOT) was determined to give the machines their essential character, leading to classification under heading 8471. Parts and accessories are classifiable under heading 8473 except where they are only suitable for use in machine families with digital copier models only, in which case heading 9009 applies.

Citation
[2010] UKFTT 527 (TC)
Parties
Appellant: Xerox Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
22 October 2010
Procedural Posture
Customs Duties Appeal / First Tier Tribunal (tax) Appellate Decision
Outcome
Appeal allowed with minor qualification
Legal Topics
Tariff Classification, Combined Nomenclature, Multifunction Machines, Parts and Accessories Classification, Interpretation of ECJ Judgments
Customs and Excise Law Tax Law European Union Law Tariff Classification Combined Nomenclature Multifunction Machines Parts and Accessories Classification Interpretation of ECJ Judgments

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Parties

Xerox Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Customs Duties Appeal / First Tier Tribunal (tax) Appellate Decision

Legal Issues

  1. 1 Whether the appellant's multifunction digital printing machines are classifiable under heading 8471 (automatic data processing machines) or heading 9009 (photocopying apparatus) of the Combined Nomenclature (CN)
  2. 2 Whether parts and accessories are classifiable under heading 8473 or 9009 of the CN
  3. 3 Application of ECJ judgments and General Rules of Interpretation to the classification of multifunction machines

Ratio Decidendi

The Tribunal found that the copying function of the machines was equivalent in importance to the printing and scanning functions, and thus the machines were not 'of a kind solely or principally used in an automatic data processing system' within Note 5(B) to Chapter 84 of the CN. However, applying GRI 3(b), the printing module (IOT) was determined to give the machines their essential character, leading to classification under heading 8471. Parts and accessories are classifiable under heading 8473 except where they are only suitable for use in machine families with digital copier models only, in which case heading 9009 applies.

Court Disposition

Appeal allowed with minor qualification

Orders

  • The machines in dispute are classifiable under heading 8471 of the Combined Nomenclature by application of GRI 3(b), as the printing module gives the essential character.
  • Parts and accessories imported as such are classifiable under heading 8473, except where they are only suitable for use in machine families with digital copier models only, in which case heading 9009 applies.