HMRC Post Clearance Demands
by Kevin Hurley
As customs procedures become more simplified and designed so that goods move freely and efficiently in and out of the European Union, customs authorities are relying moreso than ever on back office audits of imports. This can have a significant impact on traders where customs believe that the wrong tariff code was declared on importation. Post Clearance Demand notes can be costly and more importantly, sometimes incorrect!
CKH Fiscal Services has become aware that HMRC are issuing C18 Post Clearance Demand notes in respect of food supplements put up for retail sale in capsules, tablets, pastilles and pills. Food supplements sold as capsules, tablets, pastilles and pills were brought under CN heading 2106 in EC regulation 698/2013. This regulation stated that a new note in Chapter 21 would be added to the Combined Nomenclature to the effect that "Other food preparations presented in measured doses, such as, capsules, tablets, pastilles and pills, and which are intended for use as food supplements are to be classified under heading 2106, unless elsewhere specified or included.". This regulation was brought into effect arising from a European Court of Justice ruling which stated that three encapsulated oil products which had added vitamins and minerals were classified under heading 2106.
Classification of goods can be a difficult area and many traders will rely on advice from the customs agent. Customs agents often do not have the required legal classification knowledge that a tax agent may have. If you are an importer or exporter of food supplements and would like to speak to CKH about your products, please visit the contact us page.
As customs procedures become more simplified and designed so that goods move freely and efficiently in and out of the European Union, customs authorities are relying moreso than ever on back office audits of imports. This can have a significant impact on traders where customs believe that the wrong tariff code was declared on importation. Post Clearance Demand notes can be costly and more importantly, sometimes incorrect!
CKH Fiscal Services has become aware that HMRC are issuing C18 Post Clearance Demand notes in respect of food supplements put up for retail sale in capsules, tablets, pastilles and pills. Food supplements sold as capsules, tablets, pastilles and pills were brought under CN heading 2106 in EC regulation 698/2013. This regulation stated that a new note in Chapter 21 would be added to the Combined Nomenclature to the effect that "Other food preparations presented in measured doses, such as, capsules, tablets, pastilles and pills, and which are intended for use as food supplements are to be classified under heading 2106, unless elsewhere specified or included.". This regulation was brought into effect arising from a European Court of Justice ruling which stated that three encapsulated oil products which had added vitamins and minerals were classified under heading 2106.
Classification of goods can be a difficult area and many traders will rely on advice from the customs agent. Customs agents often do not have the required legal classification knowledge that a tax agent may have. If you are an importer or exporter of food supplements and would like to speak to CKH about your products, please visit the contact us page.