Rogers & Norton’s HMRC and Border Force team goes from strength to strength with another success
The goods were on hire to a customer when the UK Border Force seized the unit and trailer which were being used to transport beer. At the time, the UK Border Force said there was an issue on excise duty and VAT. The tractor unit and trailer were seized under section 141 (1) (a) of the Customs & Excise Management Act 1979 (“the Act”) because they were used to carry excise goods that were liable to forfeiture. The general policy for the restoration of commercial vehicles is designed to tackle cross border smuggling rigorously and to disrupt the supply of excise goods to the illicit market significantly.
The Act clearly states that any of the below can resort in goods being liable for forfeiture:
1) If the Commissioners are satisfied that the driver or haulier are knowingly involved in smuggling excise goods then:
If the revenue involved is significant, on the first detection the vehicle may not be restored. In other cases, on the first detection the vehicle may be restored for a fee equal to 100% of the revenue involved; or the trade value of the vehicle (whichever is the lower). On the second or subsequent occasions the vehicle may not be restored.
2) If the Commissioners are not satisfied that the driver or haulier have carried out what Border Force consider to be basic reasonable checks which would have identified the illicit load: then on the first occasion the vehicle may be seized and restoration offered for a fee equal to 20% of the revenue involved; or the trade value of the vehicle (whichever is the lower). On the second detection the vehicle may be seized and not restored.
3) If we are satisfied that the driver and haulier have taken reasonable steps to ensure the legitimacy of the load the vehicle may be seized and restored free of charge.
4) Any vehicle adapted for the purposes of smuggling may not normally be restored.
Our client requested to challenge the seizure and seek restoration under section 152 (b) of the Act. We were successful in our challenge as our submission that there were no issues with the import, excise duty and VAT, nor with our client (and we disclosed their due diligence policies) were accepted.
By securing a quick restoration and release of the goods, our client’s business can continue to trade. The beer was also restored for our other client having proved that no irregularity had been committed.
Director, Peter Hastings said: ‘We are delighted to assist businesses and individuals in the UK and abroad on any claims, disputes or investigations with HMRC and UK Border Force. We have expertise in both direct taxation (taxes on income, capital gains and inheritances) and indirect taxation (VAT, excise duty, customs duty, anti-dumping duty, SDLT and NIC). Our client base continues to expand, and we have seen an increase in work from Europe, China, USA and as far as New Zealand in addition to our UK clients. We can offer a comprehensive and cost-effective service, combining strong analytical, advisory and advocacy skills with pragmatism and approachability and deal with the most urgent matters’.
Find out more about our specialist HMRC and UK Border Force team.
*This article is provided for general information purposes only and does not constitute legal or any other professional advice.