Zenex Solar Ltd v Revenue & Customs (CUSTOMS DUTY : ANTI-DUMPING DUTY AND COUNTERVAILING DUTY) [2020] UKFTT 186 (TC) (09 April 2020)

Zenex Solar Ltd v Revenue & Customs (CUSTOMS DUTY : ANTI-DUMPING DUTY AND COUNTERVAILING DUTY) [2020] UKFTT 186 (TC) (09 April 2020)

The Tribunal found, on the balance of evidence, that the solar panels imported by Zenex were manufactured in China by Sunny and merely transhipped through Malaysia, based on matching weights, volumes, vessel data, and OLAF's investigation. Zenex failed to discharge the burden of proof to establish Malaysian origin. The documentary evidence was insufficient and unsupported by witness testimony. The correct rate of duty is that applicable to Sunny, not the residual rate, and HMRC must adjust the assessment if a higher rate was applied.

Citation
[2020] UKFTT 186 (TC)
Parties
Appellant: Zenex Solar Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
09 April 2020
Procedural Posture
Appeal Against C18 Post Clearance Demand Note (customs Duty) / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed; C18 demand upheld
Legal Topics
Anti Dumping Duty, Countervailing Duty, Country of Origin Determination, Burden of Proof, Remission of Duty, Transhipment, Import VAT
Customs and Excise Tax Law European Union Law Anti Dumping Duty Countervailing Duty Country of Origin Determination Burden of Proof Remission of Duty +2 more

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Parties

Zenex Solar Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal Against C18 Post Clearance Demand Note (customs Duty) / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether the imported solar panels were of Chinese or Malaysian origin for customs duty purposes
  2. 2 Whether the correct rate of anti-dumping and countervailing duty was applied
  3. 3 Whether Zenex discharged the burden of proof to establish Malaysian origin

Ratio Decidendi

The Tribunal found, on the balance of evidence, that the solar panels imported by Zenex were manufactured in China by Sunny and merely transhipped through Malaysia, based on matching weights, volumes, vessel data, and OLAF's investigation. Zenex failed to discharge the burden of proof to establish Malaysian origin. The documentary evidence was insufficient and unsupported by witness testimony. The correct rate of duty is that applicable to Sunny, not the residual rate, and HMRC must adjust the assessment if a higher rate was applied.

Court Disposition

Appeal dismissed; C18 demand upheld

Orders

  • HMRC's C18 Post Clearance Demand Note is upheld.
  • If HMRC applied a duty rate higher than that applicable to Sunny, the assessment must be adjusted to reflect the correct rate.