A company that disagrees with a decision of the head of a customs and tax office or of HMRC — for example on tariff classification, customs value or a customs debt that has been charged — has the right to appeal. Poland and the UK, however, have different authorities, time limits and procedures.
Contents
- In brief
- Poland: appeal to the director of the tax administration chamber
- United Kingdom: statutory review and the First-tier Tribunal
- Practical tips for businesses trading between the UK and the EU
- Statutory review or straight to the tribunal — which to choose in the UK
- Costs and duration of appeal proceedings
- Is it worth using a professional representative
- Sources
In brief
- In Poland an appeal against a decision of the head of a customs and tax office is submitted to the director of the tax administration chamber (IAS) through the authority that issued the decision — within 14 days of service (Article 223 of the Tax Ordinance).
- In the United Kingdom a company has 30 days from the HMRC decision to request a statutory review or to appeal directly to the independent First-tier Tribunal (Tax Chamber).
- Lodging an appeal usually does not suspend enforcement of the decision — suspension must be requested separately.
- Tax proceedings, including customs cases, are two-instance in Poland (Article 127 of the Tax Ordinance) — after the IAS director's decision the remaining route is a complaint to the regional administrative court.
Poland: appeal to the director of the tax administration chamber
Decisions in customs matters — for example determining the amount of a customs debt, the tariff classification of goods or the customs value — are issued by the head of a customs and tax office. Under the Tax Ordinance (the Act of 29 August 1997) the party may appeal against such a decision to the higher-level authority, that is, the director of the tax administration chamber competent for the seat of the head who issued the decision (Article 220(3) of the Tax Ordinance).
Time limit and how to submit
The appeal is lodged within 14 days of the date the decision is served on the party (or on its representative, if one has been appointed). The appeal is submitted not directly to the IAS director but through the authority that issued the decision (that is, the head of the customs and tax office) — it passes the case, together with the file, to the appeal authority.
The appeal should contain the objections to the decision, set out the substance and scope of the request that is the subject of the appeal and indicate the evidence supporting that request. You do not have to specify precisely which provisions were infringed, but the document itself must make clear what the company disagrees with.
What happens after an appeal is lodged
Tax proceedings (and so customs proceedings) are two-instance (Article 127 of the Tax Ordinance) — an appeal lies against a first-instance decision to one instance only, that is, the higher-level authority (Article 220(1)). The IAS director may: uphold the decision, quash it in whole or in part and decide the substance of the case or discontinue the proceedings, quash the decision in its entirety and refer the case back for reconsideration (where evidence has to be taken in whole or in a significant part), or discontinue the appeal proceedings (Article 233 of the Tax Ordinance).
In customs matters, lodging an appeal does not suspend enforcement of the decision (Article 45(1) UCC). The customs authority suspends its enforcement if it has good reason to believe that the decision is inconsistent with customs legislation, or where irreparable damage is feared for the person concerned — and where the decision relates to import or export duties, suspension requires, as a rule, a guarantee to be provided (Article 45(2)–(3) UCC). Until the matter is decided, it is worth securing the company's cash flow.
The next step — the administrative court
If the IAS director's decision is still unfavourable to the company, the next step is a complaint to the competent regional administrative court (WSA), followed by a cassation appeal to the Supreme Administrative Court (NSA). This is already court proceedings, governed by the Law on Proceedings before Administrative Courts, with its own time limits and formal requirements (among other things, a cassation appeal must, as a rule, be drawn up by an advocate or legal adviser — Article 175(1) of that Act).
The most common subjects of dispute in practice for businesses trading with the UK
In practice, for companies importing and exporting between Poland and the United Kingdom, the most frequent disputes over decisions of the head of a customs and tax office centre on several areas: incorrect tariff classification of goods (a dispute over the correct CN code and the duty rate that follows from it), challenges to the customs value declared on the basis of an invoice (the authority may take the view that transport costs, licences or commissions should have been added to the transaction value), refusal to recognise the preferential origin of goods under the UK–EU Trade and Cooperation Agreement (TCA) because of a defective or incomplete supplier's declaration, and disputes over the use of a special procedure (for example inward processing) in breach of the conditions of the authorisation. Each of these areas requires a different kind of evidence in the appeal — for classification the key is the technical documentation of the goods, for customs value the full structure of transaction costs, and for origin the complete set of supplier's declarations and transport evidence.
United Kingdom: statutory review and the First-tier Tribunal
When HMRC issues an adverse customs decision — for example on classification of goods (BTI/ATaR), customs value, origin or the amount of duty — the trader has two routes, described in the guidance "12. Receiving an adverse customs decision from HMRC" and in the Customs Civil Penalties Guidance (CCPG29010) on gov.uk.
Option 1: statutory review
Within 30 days of the date of the decision the company may ask HMRC in writing to carry out a so-called statutory review — a reconsideration of the case by an HMRC officer who was not involved in the original decision. The request must clearly state why the decision is being challenged.
Option 2: direct appeal to the tribunal
Alternatively, within the same 30-day period the company may appeal directly to the independent First-tier Tribunal (Tax Chamber) — an administrative court that hears tax and customs disputes and is independent of HMRC.
If you chose a review and the result is still unfavourable
If the company opts first for a statutory review and is still not satisfied with its outcome, it still has the right to appeal to the tribunal — usually within 30 days of the date of the letter giving the result of the review.
The 14-day (Poland — from service of the decision) and 30-day (UK — usually from the date of the decision) time limits must be taken very seriously. In Poland an appeal lodged out of time ends with a decision finding that the time limit has been missed (Article 228(1)(2) of the Tax Ordinance); the time limit can be restored only if the failure was through no fault of the party, and the application must be submitted within 7 days of the cause ceasing (Article 162). In the UK, once the time limit has passed you have to show a reasonable excuse. It is always worth documenting the date of service.
Practical tips for businesses trading between the UK and the EU
- Keep copies of all customs decisions and proof of service (date of receipt, notice of delivery, EORI, declaration MRN) — this is the date from which the time limit runs.
- In a classification dispute, consider first applying for a binding tariff information decision (BTI in the EU, ATaR in the UK) to avoid repeated disputes on subsequent declarations.
- Gather commercial documentation (invoices, contracts, proof of origin) already at the declaration stage — it is the evidence in any appeal.
- Consider the help of a tax adviser or a lawyer specialising in customs law — especially in cases with a higher value in dispute.
Statutory review or straight to the tribunal — which to choose in the UK
The decision whether to use a statutory review or to appeal straight to the First-tier Tribunal depends on the nature of the case. A statutory review is usually quicker and cheaper (it does not require formal court proceedings) and allows HMRC to look at the case again without involving an independent court — it is worth using where there is a suspicion that the original decision resulted from a procedural error or from overlooked documents that the company can now supply. An appeal directly to the tribunal makes sense where the dispute concerns the interpretation of legislation or where the company does not trust a reassessment by the same office — the First-tier Tribunal is independent of HMRC and, with permission, its decision can be appealed to the Upper Tribunal (Tax and Chancery Chamber) if the tribunal made an error of law. Remember that choosing one route does not close off the other — if the outcome of the review is unfavourable, the right to appeal to the tribunal remains open.
Costs and duration of appeal proceedings
In Poland significant costs usually arise at the stage of the complaint to the WSA (the court fee) and in any fee of a representative. The appeal authority should deal with the case no later than 2 months from receiving the appeal, or, if a hearing was held or the party requested one, within 3 months (Article 139(3) of the Tax Ordinance); these time limits do not include, among other things, periods of suspension and delays caused by the party. In the United Kingdom a statutory review usually takes 45 days — if it is going to take longer, the officer conducting the review contacts the company — while the length of proceedings before the First-tier Tribunal depends on the case — after a hearing the tribunal's decision usually arrives within 12 weeks.
Is it worth using a professional representative
In disputes of low value (for example minor classification corrections on a single declaration) a company may prepare the appeal itself, relying on the transaction documentation and official guidance. In cases of higher value in dispute, where the error is recurring (the same CN code used in many declarations), or where there is a risk of criminal fiscal proceedings alongside the administrative proceedings, it is worth engaging a tax adviser or a lawyer specialising in customs law at the stage of preparing the appeal, and not only after it has been rejected.
Sources
- Tax Ordinance — Act of 29 August 1997 (ISAP)
- Receiving an adverse customs decision from HMRC — GOV.UK
- CCPG29010 — Reviews and appeals: HMRC internal manual — GOV.UK
- Disagree with a tax decision or penalty — GOV.UK
- Appeal to the tax tribunal — GOV.UK
- UCC Article 45 (no suspensive effect of an appeal) — legislation.gov.uk
This article is for information only and does not constitute legal advice. In a disputed matter, consult a tax adviser or a lawyer.
If you need help with a customs declaration or checking documents before clearance, contact us.
Frequently asked questions
How long do I have to appeal against a decision of the head of a customs and tax office in Poland?
14 days from the date the decision is served on the party or its representative, in accordance with the Tax Ordinance. The appeal is submitted through the authority that issued the decision.
Does an appeal suspend the obligation to pay duty?
Not automatically. Enforcement of the decision can be suspended only on a separate request, if the authority considers it justified.
Who does a company appeal to against an HMRC decision?
Within 30 days you can request a statutory review (a reconsideration by a different HMRC team) or appeal directly to the independent First-tier Tribunal (Tax Chamber).
What if the statutory review in the UK is also unfavourable?
You can still appeal to the First-tier Tribunal, usually within 30 days of the date of the letter giving the result of the review.
Can an IAS director's decision be appealed further?
Yes — the next step is a complaint to the regional administrative court, followed by a possible cassation appeal to the Supreme Administrative Court.
Related guides
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