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 machines in dispute are not 'of a kind solely or principally used in an automatic data processing system' within note 5(B) to Chapter 84 of the CN because their use as digital copiers is equivalent in importance to their use in an automatic data processing system. However, by application of General Rule of Interpretation 3(b), the printing module gives the machines their essential character, and therefore they are classifiable under heading 8471 of the CN. Parts or accessories imported as such are classifiable under heading 8473 except in any case where they are not suitable for use solely or principally with machines of heading 8471, including specifically any case where they are...

Citation
[2010] UKFTT 527
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 Duty Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal allowed with minor qualification
Legal Topics
Tariff Classification, Combined Nomenclature (cn), Automatic Data Processing Machines, Photocopying Apparatus, Parts and Accessories Classification, General Rules of Interpretation (gri), Essential Character Test
Customs and Excise Tax Law European Union Law Tariff Classification Combined Nomenclature (cn) Automatic Data Processing Machines Photocopying Apparatus Parts and Accessories Classification +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 11 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Xerox Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Customs Duty Appeal / First Tier Tribunal (tax) 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

Ratio Decidendi

The machines in dispute are not 'of a kind solely or principally used in an automatic data processing system' within note 5(B) to Chapter 84 of the CN because their use as digital copiers is equivalent in importance to their use in an automatic data processing system. However, by application of General Rule of Interpretation 3(b), the printing module gives the machines their essential character, and therefore they are classifiable under heading 8471 of the CN. Parts or accessories imported as such are classifiable under heading 8473 except in any case where they are not suitable for use solely or principally with machines of heading 8471, including specifically any case where they are...

Court Disposition

Appeal allowed with minor qualification

Orders

  • The machines in dispute are classifiable under heading 8471 of the Combined Nomenclature.
  • Parts and accessories imported as such are classifiable under heading 8473 except where they are only suitable for use in machine families which have digital copier models only, in which case heading 9009 applies.