UT/2023/000082 - [2025] UKUT 00057 (TCC)

References below in the form FTT[x] are to paragraphs of the Decision.

During the relevant period, Uflex imported bags (the “bags”) used to contain dog or cat food. The bags were made from woven polypropylene strips and coated on the outside with plastic.

The primary issue in the appeal before the FTT was the correct classification of the bags for the purposes of customs duty (the “classification issue”). There is a statutory scheme which is intended to offer certain developing countries lower tariffs on their exports into the UK, called the Generalised Scheme of Preferences (“GSP”). Under the GSP, goods are entitled to reduced or nil rates of customs duty, known as “preference rates”. Once a trader establishes the correct tariff code for the products, then the place of origin for the products must be checked to see if the product in fact qualifies for preference. When importing under the GSP, a GSP “Proof of Origin” has to be completed in the country of origin. HMRC considered that the bags should be classified under commodity code 6305 33 90 00 (“heading 6305”), which attracts duty at a rate of 7.2%, with a potential preference rate of 5.7%. Uflex considered that the bags should be classified under commodity code 3923 29 90 00 (“heading 3923”), which attracts duty at a rate of 6.5%, with a potential preference rate of 0%.

The FTT decided that the bags were properly classified under heading 3923, as Uflex contended: FTT[78]. HMRC has not sought to challenge that decision.

However, the position was complicated by the fact that, until 2016, Uflex had incorrectly classified the bags under a third classification code, 4911 10 90 00 (“heading 4911”). A Proof of Origin must be presented within a specified period, but the relevant GSP certificates for the bags were not presented within the relevant time frame. This was because the code incorrectly applied by Uflex attracted a 0% rate of duty (which was not a preferential rate), so Uflex had mistakenly considered that a GSP Certificate of Origin (“GSP Certificate”) was unnecessary.

There is an exception for the time limit within which a GSP Certificate must be presented which provides that the authorities “may” accept late submission “where failure to submit those documents by the final date is due to exceptional circumstances”. The parties disagreed on whether this exception applied. The FTT decided that it had full appellate jurisdiction in relation to this issue: FTT[105]. The FTT also decided that HMRC would be obliged to accept a late GSP Certificate if Uflex could demonstrate that the delay was due to exceptional circumstances: FTT[106]. Neither of those conclusions is challenged in this appeal.

The FTT decided that the delay was not due to exceptional circumstances for the purposes of the time limit exception. It is that decision which is the sole issue in this appeal.