Xerox Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 22 October 2010
Neutral citation: [2010] UKFTT 527 (TC)
Overall AI summary confidence: high
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
Xerox appealed HMRC’s classification of imported multifunction printer/scanner/copier machines and parts, disputing treatment as photocopying apparatus (CN 9009) and seeking classification as automatic data-processing machines (CN 8471) and their parts under CN 8473. The Tribunal found the multifunction machines were units of automatic data-processing machines and allowed the appeal, classifying the machines under 8471 and most parts under 8473, with the limited qualification that parts suitable only for digital‑copier‑only families remain classifiable under 9009. The Tribunal granted liberty to apply on consequential matters and ordered no costs.
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
The decision rests on treating multifunction machines that perform printing and electronic scanning in connection with data‑processing systems as units of automatic data‑processing machines under Note 5(B) to Chapter 84, and on applying GRI 3(b) where necessary to identify the component giving the essential character (here the printing/IOT module) by objective characteristics such as bulk, cost and role. Parts suitable solely or principally for use with those units are classifiable under CN 8473, except where parts are solely suitable for machine families limited to digital copiers (then 9009).
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 indicated that marketing and promotional material have limited weight in determining objective characteristics for classification, and that absence of an internal ESS does not preclude a machine being a unit of an automatic data‑processing system if it is objectively designed to be network‑connectable or upgradable to connect to such a system.