HQ Foods (B'Ham) Limited v The Commissioners for HMRC

Facts

H.Q. Foods (B'ham) Limited imports tinned fish roe from an exporter in Denmark, Amanda Roe. Its freight agents declared the goods as entitled to preferential treatment under the UK/EU Trade and Cooperation Agreement and/or the Agreement on Trade in Goods between Iceland, Norway and the UK. During post-clearance checks, HMRC noted that the invoices stated that the product was "NOT of preferential origin". On 26 June 2024 HMRC decided that the goods did not qualify for preferential treatment. They issued two Post Clearance Demand Notes (C18s) for customs duty totalling £47,922.76, notified under section 20 and paragraphs 1 and 2 of Schedule 6 to the Taxation (Cross-border Trade) Act 2018. A review upheld the decision. The appellant appealed on 18 September 2024 without paying the duty. Its Notice of Appeal wrongly stated that a hardship application to HMRC was pending. HMRC later treated a one-page bank statement as a hardship application and rejected it for lack of financial evidence. On 10 December 2025 the Tribunal dismissed the hardship application. Following a concession by HMRC about allegedly ring-fenced funds, it directed by consent that the appeal would be invalid unless the duty was paid in full by noon on 24 December 2025. The appellant pursued a bank guarantee instead and paid the duty only on 9 January 2026. HMRC applied to strike out the appeal.