In HMRC v Caithness Creels (FTC/59/2013 – 5 March) the UT decided that the processing undergone by materials imported by a manufacturer of creels used by fishermen did not qualify the goods for shipwork end-use relief.
Under the Tariff regulation s II.A.1 customs duty is suspended in respect of goods intended for incorporation in ships (including fishing vessels).
The UT agreed with HMRC’s interpretation of s II.A.1. End-use relief applies to two categories of goods: goods intended for incorporation into the vessel itself; and goods intended for fitting to or equipping a vessel. Consequently the relief did not apply to the goods in dispute. These materials were not used to equip a vessel; instead their end use was the manufacture of creels. Furthermore the goods were to be subjected to ‘further processing’ and not just ‘further assembly’.
Finally the tribunal dismissed arguments that there...
