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In November 2011, the chancellor of the Exchequer announced that low-value consignment relief (LVCR) would be withdrawn for all goods imported on or after 1 April 2012 from the Channel Islands.
A draft clause to be included in the Finance Bill 2012 amending the VAT (Imported Goods) Relief Order 1984, SI 1984/746 would ensure the exemption did not apply to goods sent from the islands under a distance-selling arrangement.
The claimants applied for judicial review of the decision to disapply LVCR on a selective basis.
The court ruled that there was no principle of EU law that required the UK to treat the importation of low-value goods on mail order from the Channel Islands in the same manner as similar goods from any other non-EU territory.
The draft clause was therefore not unlawful under EU law.
