UT (Tax & Chancery) UT/2023/000087 - [2025] UKUT 00176 (TCC)

The Community Customs Code (“the CCC”) was established in 1992 by Council Regulation (EEC) No 2913/92 to charge customs duty on goods imported into the EU at rates set out in the Common Customs Tariff (“the Tariff”). The CCC was supplemented by other legislative measures including the CCC Implementing Provisions (“the CCC IP”) in Commission Regulation (EEC) No 2454/93.

A Modernised Customs Code set out in Regulation (EC) No 450/2008 was intended to replace the Community Customs Code, but did not take effect. It recited that amendments to the CCC were necessary as a consequence of recent legal changes and that the time had come to streamline customs procedures taking into account electronic declarations and processing.

The Union Customs Code (“the UCC”) in Regulation (EU) No 952/2013 “recast” the Modernised Customs Code “in the interests of clarity”. It was supplemented by Commission Delegated Regulation (EU) 2015/2446 known as the UCC Delegated Act (“UCC DA”). Relevant provisions of the UCC and the UCC DA took effect from 1 May 2016.

End-use relief in relation to civil aircraft and parts was contained in the Tariff itself. The Tariff is amended on an annual basis with ad hoc amendments during the year. The 2016 Tariff took effect from 1 January 2016. End-use relief for civil aircraft and goods used in civil aircraft appears at Annex 1, Part One Section II B. Paragraph 4 stated that the relief was subject to conditions “laid down in the relevant provisions of the European Union with a view to customs control of the use of such goods (see Articles 291 to 300 of the [CCC IP])”. The same provisions were included in the 2017 Tariff with effect from 1 January 2017, although the conditions were identified by reference to Article 254 UCC. The effect of these provisions was that customs supervision under the end-use procedure would end when the goods were used for the purposes laid down. In relation to civil aircraft, this was when the aircraft was imported and registered with the Civil Aviation Authority, or its equivalent in another member state, and delivered to the operator.

Mr White relied in his submissions on the Tariff for 2018, which was introduced with effect from 1 January 2018 by Commission Implementing Regulation (EU) 2017/1925. Recital (5) of that regulation stated that to reduce the administrative burden, where a civil aircraft had been registered as such and declared for free circulation, the requirement of the end-use procedure would be abolished. The aircraft’s registration certificate, which every aircraft was required to carry, was considered sufficient proof of the aircraft’s civil character.

Annex 1 to the Tariff for 2018 was therefore amended to exclude certain civil aircraft from the conditions in paragraph 4 where the aircraft was registered with the Civil Aviation Authority and the certificate of registration was referenced in the declaration for free circulation. The civil aircraft excluded from the conditions were aircraft falling under Tariff subheading 8802 40 being aircraft of unladen weight exceeding 15,000kg. This included the aircraft imported by the appellant.