Re-export condition in customs exemption failed when demo photocopier was not exported and duty liability followed after fire loss.

Customs duty became payable on a photocopier imported for demonstration and cleared on a re-export undertaking when the goods were not re-exported within the extended period. The Tribunal held that destruction of the photocopier in a fire did not, on the facts, amount to an Act of God sufficient to avoid the re-export condition. It further held that liability under the exemption arrangement arose once export did not take place, and the absence of foreign exchange involvement was irrelevant. The demand for customs duty was therefore upheld.

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Issues: Whether customs duty became payable on a photocopier imported for demonstration and cleared without duty on a re-export undertaking when the goods were not re-exported because they were destroyed in a fire, and whether the absence of foreign exchange involvement affected liability.

Analysis: The clearance was conditional upon re-export within the stipulated period, which was extended. The photocopier was not re-exported, and the Tribunal held that the fire could not be treated as an Act of God in the circumstances. It further held that, if the goods could not be exported, duty became payable under the exemption arrangement, and the question whether foreign exchange had been involved was irrelevant.

Conclusion: The appellant remained liable to pay customs duty, and the demand was upheld.

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