Thyssenkrupp Materials v HMRC – risks for Inward Processing Relief non-compliance

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.

Get in touch

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.

Please contact Customs Duty Consultant, Andrew Thurston or Indirect Tax Partner, Alison Horner on 01604 624011 or complete or online enquiry form to discuss more about we can help