S & B Herba Foods Limited v Commissioners for Her Majesty's Revenue and Customs

Decision date: 16 February 2011

Neutral citation: [2011] UKFTT 127 (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 a claimant seeking repayment of £35,053.44 of customs duty after tariff quota relief was not applied to part of an import of broken rice. The Tribunal held Article 239 did not entitle the importer to repayment because quota exhaustion, where all importers faced the same uncertainty until the Commission allocated the quota, was not a "special situation". The repayment claim was dismissed and the duty upheld.

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

The Tribunal concluded that exhaustion of a centrally allocated tariff quota, which affects all importers equally and where allocation is performed by the Commission, does not by itself constitute a "special" or exceptional situation under Article 239 that would justify repayment of duty; reliance on public quota-availability information does not create an entitlement to repayment.

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 commented that HMRC Notice 266's wording—stating relief may be refused "through no fault of the consignee"—could be misleading and suggested HMRC clarify whether that phrase is intended to mean HMRC's fault.