RESTORATION – 1000 cigarettes brought in from Pakistan-exit via green channel-purchased for own use- non-European importation- Commissioners acted reasonably - appeal dismissed
MANCHESTER TRIBUNAL CENTRE

	AZIZ AHMAD	Appellant

	- and -

	THE COMMISSIONERS OF CUSTOMS AND EXCISE	Respondents

				Tribunal:	MR D S PORTER  (Chairman)
						MR J P M DENNY		 	

Sitting in public in Manchester on 5th December 2003

The Appellant did not appear

Mr J Cannan of Counsel for HM Customs and Excise for the Respondents

© CROWN COPYRIGHT 2004

DECISION

1.	This is an appeal by Aziz Ahmad (the Appellant) against a decision on review of the Commissioners of Customs and Excise (the Commissioners) by letter of 30th June 2003 not to restore to him 1000 cigarettes seized on 18th April 2003. He claims the goods were for his own use. The Commissioners claim that the excise goods exceeded the amount allowed under the Travellers’ Allowance Order 1994 and were liable to duty in the UK. 
The Parties
2	Mr J Cannan of Counsel appeared for the Respondents and produced a bundle of copy documents. No one appeared for the Appellant. This Tribunal determined to proceed under rule 26(2) of the Value Added Tax Rules 1986 (as amended).
The Facts
3	The Appellant returned from Pakistan having arrived at Manchester Airport as a British Citizen on the 18th April 2003 with 1000 cigarettes in his luggage.
4	The Appellant was intercepted in the green “nothing to declare” channel. When asked if he had any goods to declare he confirmed that he knew there was a limit of 200 cigarettes but he had nothing to declare. It transpired that he had 1000 cigarettes.
5	The Appellant wrote to Customs and Excise at Liverpool in the 19th May 2003 asking that Customs at least return the 200 cigarettes, which he would have been able to import. In his notice of appeal he also stated that he was a pensioner on income support and the cigarettes should be returned to him on compassionate grounds. 
6	We find as fact the matters set out in paragraphs 3 to 6 above.

The Law
7.	The Customs and Excise Management Act 1979 (“CEMA”) section 78 provides:
“(1) Any person entering the united Kingdom shall, at such place and in such manner as the Commissioners direct, declare anything contained in his baggage or carried with him: -
1.	He has obtained outside the United Kingdom
2.	………..
and in respect of which he is not entitled to exemption from duty and tax by virtue of any order under section 13 of the Customs and Excise Duties (General Reliefs) Act 1979 (personal reliefs)
(2) Any person entering or leaving the United Kingdom shall answer such questions as the proper office may put to him with respect to his baggage and anything contained therein or carried with him, and shall, if required by the proper officer, produce the baggage and any such thing for examination at such place as the Commissioners shall direct.
(3) Any person failing to declare anything or to produce any baggage or thing as required by this section shall be liable on summary conviction to a penalty of three times the value of the thing not declared or of the baggage or thing not produced, as the case may be, or [level three on the standard scale], whichever is the greater.
(4) Any thing chargeable with any duty or tax which is found concealed, or is not declared, and any thing which is being taken into or out of the United Kingdom contrary to any prohibition or restriction for the time being in force with respect thereto under or by virtue of any enactment, shall be liable to forfeiture.
8.	Section 139of CEMA 1979 provides: -
“ (1) Any thing liable to forfeiture under the customs and excise acts may be seized by an officer.

9.	The Travellers Allowance Order 1994
“2 (1) Subject to the following provision of this Order a person who has travelled from a third country shall on entering the United Kingdom be relieved form payment of value added tax and excise duty on goods of the descriptions and in the quantities shown in the schedule of this Order obtained by him in a third country and contained in his personal luggage.
       (2) The reliefs afforded under this Order are subject to the condition that the goods in question, as indicated by their nature and quantity or otherwise, are not imported for commercial purposes; and if that condition is not complied with in relation to any goods, those goods shall, unless the non-compliance was sanctioned by the Commissioners, be liable to forfeiture.
 Schedule, Article 2, Goods obtained in Third Countries
		Tobacco
		Cigarettes	200 or
		Cigarillos	100  or
		Cigars 		 50   or
		Smoking tobacco 250 grammes
10.	Section 152(b) CEMA 1979 provides that the Commissioners may as they see fit, restore, subject to such conditions (if any) as they think proper, any thing forfeited or seized.

Submission
11.	Mr Cannan submitted that the Appellant had not challenged the legality of the seizure and the goods were duly condemned as forfeit by the passage of time. It is clear that duty was payable on the excise goods as they were import from Pakistan and were in excess of the quantities referred to in the Travellers’ Allowance Order 1994. namely 200 cigarettes.
12.	The Appellant had alleged that the goods were for his personal use and on compassionate grounds he should be allowed to keep 200 cigarettes. Such considerations do not constitute exceptional circumstances.
13.	The Commissioners had acted reasonably in refusing to restore the goods.
The Decision
14.	We have considered the facts in this appeal and we are satisfied that the Commissioners acted reasonably and that the goods should not be restored. We therefore dismiss the appeal. As the goods had been purchased in Pakistan the Appellant could only bring 200 cigarettes into the United Kingdom and it was not relevant that the goods had been purchased for his own use. The Appellant had gone though the “ Green Channel” and had failed to declare the goods when asked. It had been open to the Commissioners to prosecute him under section 78 (3) but they had chosen to forfeit the goods.
15.	We also accept that the Commissioners have been put to unnecessary costs and award costs against the Appellant of £150.

D S PORTER
CHAIRMAN
RELEASED:
MAN/03/8140