Proctor & Gamble International Operations SA v The Commissioners for HMRC

Decision date: 18 March 2022

Neutral citation: [2022] UKFTT 229 (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 tariff classification of Metamucil Suikervrij Orange (MSO) and whether ispaghula husk in MSO is a "plant extract" (making MSO a medicament under CN heading 3004) or instead a non-active "food preparation" (heading 2106) or a "chemically defined substance". The Tribunal held ispaghula husk is a "plant extract" for the CNEN and not a "chemically defined substance", and therefore MSO is properly classifiable as a medicament under heading 3004; P&G's appeal was allowed. P&G’s application for costs was dismissed.

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: high

For the purposes of the CNEN to the Additional Note to Chapter 30, a "plant extract" can include material obtained by mechanical separation (for example winnowing) and need not be produced by solvent extraction; and a "chemically defined substance" denotes matter of constant chemical composition separable only by breaking chemical bonds, which a composite natural husk containing multiple constituents does not satisfy.

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 noted (obiter) that the Additional Note and CNEN serve to confirm presumptive classification where labelling/contents meet specified criteria and do not permit the EU to alter HS headings; and that the Tribunal may decide points raised late by parties where no prejudice arises and the overriding objective is met.

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