Nexans Norway AS v The Commissioners for HMRC
Decision date: 28 August 2024
Neutral citation: [2024] UKFTT 782 (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
This is an appeal against HMRC's customs classification of an undersea export cable for the Seagreen offshore windfarm that contains three high‑voltage power cores and an integrated 48‑fibre optical element. The Tribunal held the cable is a "composite machine" under Note 3 to Section XVI, has no single principal function (power and data transmission are independent and equally important), and that its essential character lies in the integrated dual power‑and‑data capability; it was classified as 85 44 70 00 90. Nexans' appeal was allowed; parties have 56 days to seek permission to appeal.
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 binding decision is that Note 3 to Section XVI can treat a non‑mechanical product as a "machine" where Chapter headings indicate such coverage; where a composite machine has two independent, equally important functions it has no principal function and neither constituent gives it the essential character under GIR 3(b), so classification proceeds under GIR 3(c), with objective characteristics and verifiable external materials (design specifications, market norms) admissible in assessing principal function and essential character.
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 judgment suggests (as non‑binding observations) that verifiable evidence of market practice and customer requirements may corroborate objective technical characteristics, and that technical integration details (e.g. semiconductive layers, metal casing) can be relevant background when explaining functional interdependence.