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...
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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...
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