Tax Appeals Commission determination 45TACD2026 regarding Customs & Excise, 2026

• Administrative Decision Number: 45TACD2026
• Year: 2026
• Subject Matter: Customs & Excise
• Respondent: The Revenue Commissioners

AN COIMISIÚN UM ACHOMHAIRC CHÁNACH

TAX APPEALS COMMISSION

Between

45TACD2026

Appellant

and

The

Revenue

Commissioners

Respondent

Determination

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Contents

Introduction........................................................................................................................... 3

Background........................................................................................................................... 5

Legislation and Guidelines .................................................................................................. 14

The EU Regulations ........................................................................................................ 14

General Rules and the Harmonised System.................................................................... 15

The Nomenclature........................................................................................................... 17

The Harmonised System Explanatory Notes (HSEN) ...................................................... 17

Heading 2205.................................................................................................................. 18

Heading 2208.................................................................................................................. 19

BTIs and the Customs Code............................................................................................ 21

Evidence and Submissions ................................................................................................. 21

Appellant’s evidence and submissions ............................................................................ 21

Respondent’s evidence ...................................................................................................33

Respondent’s submissions.............................................................................................. 46

Material Facts ..................................................................................................................... 52

Analysis ..............................................................................................................................54

Burden of proof................................................................................................................54

The test for classification in the CN ................................................................................. 57

The objective characteristics of the product..................................................................... 58

The 2014 Regulation....................................................................................................... 61

The 2019 Regulation....................................................................................................... 65

The Respondent’s manual............................................................................................... 67

The Finance Act 2003 ..................................................................................................... 69

S.I. No. 379/2004 - Alcohol Products Tax Regulations, 2004........................................... 71

The intended use of the product...................................................................................... 71

Heading 2208 of the CN .................................................................................................. 72

Heading 2205 of the CN .................................................................................................. 87

BTI decisions................................................................................................................... 93

Conclusion ......................................................................................................................94

Revenue procedures - Jurisdiction of an Appeal Commissioner...... ............................. ... 97

Determination .....................................................................................................................98

Notification.......................................................................................................................... 98

Appeal ................................................................................................................................ 98

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Introduction

1. This is an appeal to the Tax Appeals Commission (“the Commission”) pursuant to and in

accordance with the provisions of section 949I of the Taxes Consolidation Act 1997 (“the

TCA 1997”) brought on behalf of the Appellant in relation to a Binding Tariff Classification

(BTI) issued by the Respondent in relation to an aromatised wine-based drink (“the

product”).

2. Tariff classification decisions are in the form of a BTI issued by the Respondent. A BTI is

a document which provides a written account of the holder of the classification decision,

the tariff code applicable to the product, a detailed description of the product and the legal

justification for the decision to classify the product in the particular code.

3. This appeal concerns the interpretation of Heading 2205 and Heading 2208 of the

Combined Nomenclature (“CN”) set out in Council Regulation (EEC) No 2658/87 of 23

July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff

([1987] OJ L 256/1) (“the 1987 Regulation”) and Commission Implementing Regulation

(EU 2018/1602 of 31 October 2018 amending Annex I to Council Regulation (EEC) No

2568/87 ([2018] OJ L 273/1) (“the 2018 Regulation”) which represent European Union

(“EU”) legislation.

4. Art icle 288 of the Treaty on the Functioning of the European Union (“TFEU”) states that

EU Regulations are directly applicable in all Member States. This means that they are

legally binding on Member States, without any action on the part of the Member States.

Article 288 of the TFEU states that with respect to a Regulation, it “shall be binding in its

entirety and directly applicable in all Member States”. Hence, both the 1987 Regulation

and the 2018 Regulation are directly applicable to Ireland as a Member State in their

entirety. There is no dispute between the parties about the status of these EU Regulations

and their direct applicability to the subject matter of this appeal.

5. By way of a BTI application to the Respondent dated 29 July 2024, the Appellant

requested classification for the product under subheading 2205 10 10 of the CN,

“Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances;

of an actual alcoholic strength by volume of 18% or less”.

6. O n 13 December 2024, the Respondent issued BTI decision

the Appellant under subheading 2208 90 69 of the CN, “Undenatured ethyl alcohol of an

alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous

beverages: Other spirituous beverages”. The BTI decision is valid for three years.

to

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