Ocean Choice International Limited v The Commissioners for HMRC
Decision date: 13 March 2023
Neutral citation: [2023] UKFTT 289 (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 appeal concerned whether Ocean Choice incurred customs debts when importing prawns under an end‑use authorisation before a CCG bank guarantee was in place, and whether HMRC should revoke or grant retroactive authorisation or remit the duty. The Tribunal held a customs debt arose for imports made before an adequate guarantee was provided, found no basis to revoke or to grant a retroactive authorisation, but granted remission under Article 120 in the interests of equity because the trader was in an exceptional situation without deception or obvious negligence. The last four imports after the guarantee operated did not give rise to a customs debt.
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
Where an end‑use authorisation expressly conditions its effectiveness on provision of an adequate guarantee, a trader who makes declarations before such a guarantee is in place incurs a customs debt under Article 79; HMRC communications or informal indications that authorisation is effective do not negate that condition.
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 as obiter that internal confusion and inconsistent HMRC templates and communications about the interplay of authorisation, guarantee and "securities" were widespread and relevant to assessing whether the trader's situation was exceptional for remission; and that the terms of a CCG2 deed (for example an "on demand" undertaking and stated commencement) can affect whether a guarantee operates to cover debts incurred before formal HMRC approval.