Selective Marketplace Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 22 April 2010
Neutral citation: Neutral citation not available
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 retail sales from temporary storage could lawfully make the customer the importer so as to avoid customs duty and reduce VAT, and alternatively whether the arrangements were abusive. The Tribunal held the scheme was ineffective: part-removal/sale from temporary storage by SML amounted to release to free circulation by SML, creating duty and VAT liability, and in any event the arrangements were abusive and struck down. The appeal 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
A person who makes a summary declaration and holds goods in temporary storage cannot pursue a course of conduct (such as part removal and sale) that prevents compliance with re-presentation or entry obligations; such conduct is properly treated as release to free circulation by that person, attracting customs duty and VAT. Temporary storage provisions must be interpreted purposively to prevent routine use of temporary storage to convert consignments into part-clearances that defeat the customs and VAT regime.
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 noted that Commissioner publications contained ambiguous guidance about part-clearance where no package-breaking occurs, but unclear administrative guidance cannot override primary European law; and that the de minimis concession is an administrative/accounting measure that does not extinguish underlying duty liability.