Morrisons vs HMRC: A £4.7M reminder that origin really matters

A recent tribunal decision involving Morrisons has become an important reminder for UK importers about the consequences of incorrect origin declarations. HMRC successfully challenged the declared origin of aluminium foil brought into the country, determining that the goods should have been treated as originating in China rather than Thailand. The operations carried out in Thailand were judged to be too limited to change the product’s origin.

As a result, significant amounts of duty and VAT became payable. Although the goods themselves were straightforward, the case underlines a broader point: origin decisions can have major financial implications when they are not supported by sufficient evidence.

Why the ruling matters for importers

The outcome signals a shift in how non-preferential origin rules are being applied and reviewed. Several lessons emerge for businesses:

• Origin should be treated as a compliance issue in its own right, not simply a supply chain detail.

• HMRC is taking a more rigorous approach to verifying where goods genuinely come from.

• Businesses must be able to demonstrate how goods are manufactured and why a particular origin has been assigned.

• Smaller companies without structured compliance processes may face heightened risk.

  
  

The financial perspective

From a financial and governance standpoint, incorrect origin can expose businesses to considerably higher costs than many expect. For some products, additional duties can represent a significant share of the item’s value. When issues accumulate across multiple shipments or time periods, the exposure can be substantial.

The key message is that non-preferential origin should be reviewed regularly in the same way that other financial risk areas are monitored. Assumptions or outdated supplier statements are not enough.

How the Greater Manchester Chamber of Commerce can support your business

Our international trade team helps companies build confidence in their customs compliance by providing guidance on:

• Tariff classification

• Customs valuation

• Determining and evidencing origin

• Preparing documentation that aligns with HMRC expectations

• Reviewing supply chains for potential risk areas

Having reliable information available is essential when HMRC requests clarification on the background of imported goods.

Take the next step towards stronger compliance

If you would like to assess the strength of your existing customs declarations or review your internal processes, book a session with our team. We can help you evaluate your customs procedures, evidence requirements and supply chain risks. Our specialists will support you in verifying origin decisions, strengthening documentation and reducing compliance risk.

Get in touch with us:

Email: international@gmchamber.co.uk

Phone: 0161 393 4314

We can help you understand your risk areas, strengthen compliance and support smoother importing.