Since approximately 2012, the appellant, Fatima Jewellers Limited, has been exporting gold to Dubai to have it made into gold jewellery by goldsmiths in the country, before re-importing the finished jewellery into the UK.

Where gold is temporarily exported from the UK in order to be made into jewellery, it is possible, subject to certain conditions, for customs duty and import VAT to be paid only on the cost of the work carried on outside the UK when the jewellery is imported into the UK and not on the full value of the jewellery.

Following an investigation, HMRC concluded that Fatima Jewellers did not satisfy the relevant conditions.