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Frank Mitchell successfully represented Nexans Norway A.S. in its recent duty classification appeal. Nexans manufacture in the USA, and imported into the UK, a composite submarine cable comprised of fibre optic elements and electrical cores. The cable, referred to as an ‘export cable’ connects offshore wind farms to onshore electrical substations and facilitates both the export of electricity from the wind farm and the remote control and operation of the wind farm through the fibre optic element. Whilst a physical inspection of the cable reveals that the fibre optic element comprised just 0.3% of the cross sectional area of the cable and just a ’small-fraction’ of the cable’s overall weight, the FTT were satisfied that the cable performed two functions which were independent of each other and performed both both to a high level. It held that neither the electrical nor the fibre optic element performed the principal function nor did either element provide the cable with its essential character as the essence of this cable was one which was designed to perform two functions which were, in essence, ‘better together’.
Whilst the case centres on a niche product, the First Tier Tribunal’s careful analysis of the relevant rules of classification and the jurisprudence of the courts is of general interest to those involved in customs duty classification.