now excludes from zero-rating, biscuits
wholly or partly covered withchocolate or some product similar in taste and
appearance. This phrase refers to the external surface of
the biscuit, and to any amount of chocolate or chocolate substitute
covering it. The tribunal in the case of
North Cheshire Foods Ltd (MAN/86/0216)
confirmed that biscuits with nine or ten fine lines of chocolate
amounting to about 1% of their content piped over the surface were
caught by excepted item 2, and standard-rated.
The following are not considered to be wholly or partly covered and are zero-rated:
Should a trader argue that a chocolate biscuit is filled as opposed to covered, you should consider the tribunal ruling in the case of United Biscuits (MAN/02/0563). In that case, Customs and Excise was found to be correct in asserting that a chocolate biscuit, in the form of a tartelette, was covered with chocolate for the purposes of Group 1.