Riverside Aromatics Ltd v Revenue and Customs (Customs Duty – Whether A Solution of Ammonium Sulphide): FTTTx 13 Feb 2018

Customs duty. Whether a solution of ammonium sulphide (also known as diammonium sulphide) 15% in water (a food flavouring) should be classified in heading 28309085 (attracting 5% duty) or in heading 33021090 (attracting nil duty) in the Schedule of Customs Duties in Part Two of Annex I to Council Regulation (EEC) 2658/87. Sportex GmbH and Co. v Oberfinanzdirektion Hamburg [1988] EUECJ R-253/87, [1988] ECR 3351, [1988] ECR III-3351, [1988] EUECJ R-253/87 considered.
Held: (1) Neither heading provides a more specific description of the product than the other for the purposes of rule 3(a) of the General Rules of Interpretation in Part A of Section 1 of Part One of Annex I to Council Regulation (EEC) 2658/87. (2) For rule 3(b) of those rules, ammonium sulphide is the material or component which gives the product its essential character. That the ammonium sulphide is not added to, but arises in, the mixture makes no difference. Sportex does not require an imaginary reversal of the manufacturing process to extract back out the component in question. (3) The product is therefore to be classified in heading 28309085 and is subject to 5% duty.

[2021] UKFTT 400 (TC)
Bailii
England and Wales

Customs and Excise

Updated: 18 January 2022; Ref: scu.669735