Thyssenkrupp Materials v HMRC – risks for Inward Processing Relief non-compliance
Alison Horner · January 12th 2023 · read
Important HMRC decision highlights significant risk to IPR authorisation holders
A UK tribunal decision, has raised the profile of the regime and highlights the importance of not being complacent.
In the Thyssenkrupp Materials (UK) Limited case, HMRC raised a Duty and VAT assessment for nearly £9m due to a breach of the obligations under providing a Bill of Discharge (BoD). Errors related to the fact that the BoDs did not match the information contained in the MSS data, such as:
- Commodity code was incorrectly declared on the import entry, but the commodity code on the BoD is correct.
- Difference between the weight or customs values recorded on MSS and the weight shown on the BoD.
- Errors relating to incorrect import stock recorded, resulting in incorrect export quantities declared on BoD.
- Failure to report the disposal of a quantity of import goods.
If your business has held an IP authorisation for a long time, or was authorised after May 2016, without any pre-authorisation visit by HMRC, we strongly recommend a review of your processes.
HMRC do not check BoD’s on receipt, so your company may not know they are failing to comply until months, or even a couple of years later.
The Thyssenkrupp case highlights the fact that even a single error on a BoD can result in a customs debt for the whole BoD import period. IP authorized businesses should review its current processes and BoD submissions to avoid the same outcome.
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Our Customs Team is available to discuss your Inward Processing authorisation and provide support and education to help minimise the risk of HMRC action on your company.