S & B Distribution Limited v The Director of Border Revenue

Decision date: 2 December 2022

Neutral citation: [2022] UKFTT 448 (TC)

Overall AI summary confidence: high

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Short overview

This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.

AI confidence in this short overview: high

This appeal concerned the seizure of 7,200 litres of wine imported under an Admission for Relief from Customs Duty (ARC) and the subsequent refusal to restore it. The Tribunal held it was reasonable for the reviewing officer to rely on information from the specialised Fraud Team, but that the officer was not reasonably entitled to infer the importer’s complicity in misuse of the ARC on the material before him. The Tribunal ordered that the review decision cease to have effect and directed a fresh review.

Ratio decidendi

This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.

AI confidence in this ratio decidendi summary: medium

A reviewing officer may properly accept and act on intelligence from a specialised Fraud Team without independent verification where that team possesses information not otherwise available to the reviewer; however, a refusal to restore goods on the basis of alleged complicity requires cogent evidence, and mere recurrence of the same haulier/driver or vehicle details is insufficient by itself to establish the importer’s complicity.

Obiter dicta

This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.

AI confidence in this obiter dicta summary: medium

The Tribunal observed that withholding detailed restoration policies from the public to avoid aiding smugglers is not unreasonable, and noted plausible innocent explanations (for example diversion by a haulier/driver) for prior ARC use that can absolve a consignee of knowledge.