Morrisons Loses Appeal on Aluminium Foil Origin: HMRC Anti-Dumping Duty Upheld by FTT
The First-tier Tribunal (FTT) has dismissed an appeal by Wm Morrison Supermarkets Plc against a £5 million HMRC assessment for anti-dumping duty (ADD) and import VAT relating to aluminium foil imports declared as originating in Thailand.
The case provides a clear warning to importers that minor processing carried out abroad will not be sufficient to change the customs origin of goods, particularly where there is evidence that the processing was undertaken primarily to avoid anti-dumping measures.
Background to the Dispute
Morrisons imported aluminium foil which was declared as being of Thai origin, rather than Chinese origin. Aluminium foil originating in China is subject to EU and UK anti-dumping duties, whereas Thai-origin goods are not.
HMRC challenged the declared origin, arguing that the foil remained of Chinese origin because the processing carried out in Thailand did not amount to substantial transformation under customs origin rules.
Tribunal’s Findings
The FTT focused on whether the Thai processing was:
Substantial, and
Economically justified, rather than undertaken solely to avoid ADD
The Tribunal found that the processing in Thailand was minimal and largely cosmetic, and that it was not economically justified in its own right. Instead, the evidence suggested the processing was designed specifically to circumvent anti-dumping duties.
Notably, HMRC relied on publicly available evidence, including statements on the exporter’s website and social media, which supported the conclusion that avoiding ADD was a key driver of the supply chain arrangement.
Summary
This decision reinforces several important principles:
Minor or finishing processes are unlikely to change customs origin
Intent to avoid ADD can undermine origin claims
HMRC will use commercial, marketing, and online evidence in investigations
Anti-dumping cases carry significant financial and reputational risk
Businesses should ensure that any origin planning is commercially robust, economically justified, and fully documented.
At 4 Eyes Ltd, we advise importers on origin rules, trade defence measures, and audit defence. Early review of supply chains is essential where anti-dumping duties apply.