EU: Additional customs duties on certain lighters from United States annulled (CJEU General Court judgment)
Only lighters of a certain type were subject to an increase in customs duties of 20%.
Only lighters of a certain type were subject to an increase in customs duties of 20%.
The General Court of the Court of Justice of the European Union (CJEU) today issued a judgment annulling an increase in customs duties on certain lighters from the United States.
The case is: Zippo Manufacturing and Others v. Commission, T-402-20
Summary
As explained in a CJEU release (October 18, 2023):
- The United States in January 2020 increased the custom duties on imports of certain aluminum and steel products. The European Commission (EC) imposed from 8 May 2020 until 31 December 2021 additional custom duties (of up to 20%) on imports into the EU of certain products originating in the United States. In particular, only lighters of a certain type were subject to an increase in customs duties of 20%.
- The lighter manufacturer claimed to be the only known manufacturer of metal mechanical windproof lighters in the United States. A significant part of its lighters was imported into the EU. Positing that the increase in customs duties on its lighters had breached the principle of good administration and its right to be heard beforehand, the lighter company sought the annulment of that increase before the General Court of the CJEU.
- The General Court agreed with the lighter company and annulled the increase in customs duties on the type of lighters at issue. The court emphasized that even though the increase in customs duties was carried out by means of an act of general application (i.e., it applied to all lighters of the type at issue originating in the United States), it could be challenged by the lighter company because it was of individual and direct concern to the company as the only exporting producer of the type of lighters at issue from the United States to the EU.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.