Client: Hygiene Disposables Group

https://hydi-group.co.uk/

Hygiene Disposables Group are the UK’s leading importer of disposable hygiene products including paper products, refuse sacks, personal protection, gloves and janitorial products. During the pandemic Hydi were a crucial supplier of quality protective garments to the medical profession certified to the highest standards. Due to the critical nature of the garments in the fight against COVID-19, HMRC suspended import duty on these and many other related products to ensure swift clearance through customs and to minimise costs. A document published by HMRC declared that the import duty suspension would remain in place until December 2028.

During an import, Hydi’s freight forwarder omitted the additional code on the import declaration that indicated the import duty should be waived. This mistake resulted in HMRC reviewing Hydi’s imports up to that date and querying the HS code they were using. Normally in these circumstances HMRC would have a definite view about the alternative code they prefer but in this instance were unable to do so. Almost a year passed without a resolution during which time Hydi Group became increasingly anxious that they may be landed with a retrospective import duty bill. As the usual rate is 12% this would put significant strain on the company’s finances.

In the first instance The International Trade Company was engaged to review all the communications between Hydi and HMRC and provide a professional opinion on whether the code Hydi were using at 0% import duty could be justified. HMRC were eager that Hydi should apply for an Advance Tariff Ruling which would be a legally binding decision as to what the HS code should be. The International Trade Consultancy therefore applied for the ATaR on Hydi’s behalf which provided certainty to Hydi and HMRC about the correct HS code and rate of import duty for this product.