Guidance

UK Trade Tariff: appeals

Published 1 January 2009

1. Background

The staff of HMRC will help traders in every reasonable way to obtain their rights and to understand and meet their obligations under UK and EU duty laws and tax laws. In order to do so HMRC must have the full co-operation of importers and exporters in providing all necessary information upon which advice and decisions concerning liability to or relief from duty and tax can be based.

2. Requests for rulings to HMRC

Whilst the interpretation of the law is ultimately a matter for the courts, HMRC will give Binding Tariff Information (BTI) for goods where importers or exporters encounter difficulties in deciding such matters for themselves. BTI is provided in accordance with the Community Customs Code (Council Regulation (EEC) No. 2913/92) and the implementing provisions thereto (Commission Regulation (EEC No. 2454/93).

A BTI decision is given in writing and is valid throughout the UK and EU for a period of 6 years, subject to there being no changes which make it incompatible with subsequent EU legislation or interpretation.

Requests for BTI rulings can be submitted to the Tariff Classification Service on an electronic BTI (eBTI) form which can be accessed via the Government Gateway. Before you can register with the Government Gateway you will need to obtain an Economic Operator Registration and Identification (EORI) number. You will also need the business postcode.

BOI (Binding Origin Information) can also be provided. BOI is an origin decision on a product’s preferential or non-preferential status. A BOI ruling is legally binding throughout the UK and EU for 3 years from the date of issue. The legal provisions for BOI are also contained within Council Regulation (EEC) No. 2913/92 and Commission Regulation (EEC) No. 2454/93.

Further information can be found in Notice 600 and Notice 831.

2.1 Customs’ appeals

The Finance Act 1994 introduced an appeals process from 1 January 1995 for most customs matters. The Finance Act 1994 lists all the appealable matters.

Prior to an adverse customs decision being issued HMRC will firstly issue a pre-notification letter explaining the reasons why the adverse decision is to be made. This pre-notification, called a right to be heard, will give you a period of 30 days in which you can make further representations or provide further information to HMRC concerning the decision in question.

At the conclusion of the right to be heard period the officer will then issue their decision.

If you are dissatisfied with this decision you have 2 options.

The first option is to have the case reviewed by an officer independent from the one who made the decision. A review must be requested in writing and should set out the reasons why you do not agree with the original decision. A review officer will then conduct a formal review of the decision and when completed notify the outcome in writing.

If you do not want a review or you do not agree with the review conclusion you can appeal to an independent Tax Tribunal. The tribunal is administered by the Tribunals Service which is part of the Ministry of Justice and is totally independent from HMRC.

Time limits.

There is a 30 day time limit from the date of a written notification of a decision to either:

• request a formal review
• appeal direct to the tribunal

Similarly, there is a 30 day limit from the date of the written review decision to submit an appeal to the tribunal. Once a review is requested HMRC has 45 days in which to conduct its investigation and notify the outcome.

This time limit may be extended with mutual agreement.

Read more about how the process works and what to do if you disagree.

2.2 Excise appeals

The Finance Act 1994 covers most excise matters and introduced changes to the appeals system from 1 April 2010.

Before considering an appeal there must be an appealable decision, given in writing. This decision should explain the appeal procedures.

If you’re dissatisfied with the decision you have the right to a review of the decision by an officer not connected to the case. If the outcome of the review is not satisfactory the decision you can appeal to the Tribunal Service.

You can appeal directly to the Tribunal Service without having the decision reviewed.

A decision cannot be reviewed and appealed to the Tribunal Service at the same time.

Time limits

You have 30 days from the date of the appealable decision to either request a review or write to the Tribunal Service asking to have your case heard. HMRC are required to provide a full reply within 45 days of the receipt of your request for a review, unless an extension of time has been agreed.

Find further information about appeals and reviews.

2.3 Reference to nomenclature committees: disputes

Within the UK and EU and under the Harmonised System (HS) convention, procedures exist for ensuring the uniform application of the EU and HS nomenclatures respectively through regular meetings of nomenclature committees.

Unresolved differences of classification between UK or EU member state administrations are taken to the committees to secure an agreement. In the case of the HS nomenclature major decisions of the Committee are published in the form of amendments to the nomenclature, explanatory notes or classification opinions. Decisions within the UK and EU are published in the form of Commission Regulations in the Official Journal of the European Communities (L Series).

2.4 Notifying disputes

Importer or exporters becoming aware of differences in classification treatment of their goods either within or outside of the UK or EU should advise HMRC in the first instance. You should write to:

HM Revenue and Customs
10th Floor East
Alexander House
21 Victoria Avenue
Southend-on-Sea
Essex
SS99 1AA

3. Other measures

3.1 The Adjudicator of HMRC

If you are not satisfied with the decision reached by HMRC you can ask the Adjudicator to look into your case. The Adjudicator’s service is free.

The Adjudicator is a fair and unbiased referee whose recommendations are independent of HMRC.

Further information is available in the Adjudicator’s Office leaflet ‘How to complain about Customs and Excise’ (AO2). The National Advice Service can provide you with copy.

You can contact the Adjudicator by Telephone: 03000 571 111 (typetalk facilities are available), or visit the Adjudicator Office website.

3.2 The Parliamentary Ombudsman

You can, at any time, ask an MP to refer your complaint to the Parliamentary Ombudsman. The Ombudsman is independent of government and can also consider complaints about the Adjudicator’s Office. For further information about the Parliamentary Ombudsman, please contact the Parliamentary Commissioner for Administration:

• telephone: 0345 015 4033
• email: phso.enquiries@ombudsman.gsi.gov.uk
• Parliamentary Ombudsman website