At centre stands the tank containing the 240,000 gallons of fuel the Customs Department seized from Delta Petroleum in September, an action that was deemed unlawful on Monday in the Eastern Caribbean Supreme Court of Appeal. Photo: ERIC VOORHIS

A High Court judgment allowing the Customs Department to seize roughly 240,000 gallons of fuel from Delta Petroleum Corporatio n was overturned by the Eastern Caribbean Supreme Court of Appeal in a ruling Monday night.

“The appeal is allowed,” said Justice Mario Michel, QC, in delivering the judgment. “All costs are awarded to the appellant.”

It was the end of an ordeal that began on Sept. 16, 2013, when Delta employees discharged the fuel from the vessel Charmer into “Fuel Tank Number Seven” in Pockwood Pond. The fuel was seized by Customs three days alter.

Although the legal issues surrounding the case are heavily layered, the initial ruling that allowed the seizure was based largely on a single point: When Delta discharged the fuel, it did so without the presence of customs officers.

“There are obvious reasons why both the legislature and the commissioner of customs have mandated that importers secure the imprimatur of customs officials before removing goods from the place of importation,” Justice Vicki Ann Ellis wrote in her February 2013 decision. “Given the commissioner’s duties under the Customs Act, how else can he track and verify the imported goods, and how can he assure the efficient and effective collection of customs duty?”

However, Delta’s attorney, Terrance Neale of McW. Todman & Co., successfully argued Monday morning that the fuel in question was never subject to duty: It was prearranged that the fuel would be imported for the sole use of the BVI Electricity Corporation. Thus, he said, it was not liable for forfeiture.

See the Jan. 16, 2014 edition for full coverage.

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