Legalize / United Kingdom / Public General Act

Taxation (Cross-border Trade) Act 2018

Type Public General Act

Publication 2018-09-13

State In force

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

PART 1 — Import duty

The charge to tax

Charge to import duty

1

(1) A duty of customs (to be known as “import duty”) is charged in accordance with provision made by or under this Part by reference to the importation of chargeable goods into the United Kingdom.

(2) Sections 30A and 30B make provision about the application of this Part to goods imported into the United Kingdom as a result of their entry into Northern Ireland.

Chargeable goods

2

(1) Goods are “chargeable goods” for the purposes of this Part unless they are domestic goods.

(2) But subsection (1) is subject to section 30A(4) (importation of goods: Northern Ireland).

Incurring of liability to import duty

Obligation to declare goods for a Customs procedure on import

3

(1) Chargeable goods which are presented to Customs on import must be declared for a Customs procedure by the making of a Customs declaration.

(2) It is the Customs procedure for which the goods are declared that determines when a liability to import duty is incurred.

(3) The Customs procedures for which chargeable goods may be declared are as follows—

(a) a procedure under which the goods are released for free circulation in Great Britain (referred to in this Part as “the free-circulation procedure”), or

(b) a special Customs procedure.

(4) In this Part “special Customs procedure” means—

(a) a storage procedure,

(b) a transit procedure,

(d) an authorised use procedure or temporary admission procedure.

(5) Schedule 1 makes provision about—

(a) the period within which Customs declarations are required to be made (and associated matters),

(b) the making, amendment or withdrawal of Customs declarations,

(d) the verification of Customs declarations by HMRC officers, and

(e) the release of goods to, and the discharge of goods from, Customs procedures.

(6) Schedule 2 makes further provision about special Customs procedures.

When liability to import duty incurred

4

(1) If—

(a) chargeable goods are declared for the free-circulation procedure, and

(b) HMRC accept the declaration,

a liability to import duty is incurred at the time of the acceptance.

(2) If chargeable goods are declared for—

(a) a storage procedure,

(b) a transit procedure, or

the general rule is that a liability to import duty is not incurred by reference to the importation of the goods.

(3) This rule is subject to the following two exceptions—

(a) if there is no entitlement to make the Customs declaration concerned, a liability to import duty is incurred at the time the (purported) declaration is made, and

(b) if there is a breach by any person of any requirement relating to the procedure, a liability to import duty is incurred at the time at which the breach first occurs.

(4) In the case of goods declared for an authorised use procedure or temporary admission procedure—

(a) a liability to import duty is incurred at the time the declaration is accepted by HMRC,

(b) if there is an entitlement to make the declaration for the procedure, the rate of import duty is lower than the normal rate (see section 19(4)),

(d) if there is a breach of a requirement relating to the procedure, a further liability to import duty arises at the time of the breach at the normal rate reduced to take account of the amount of any earlier liability.

(5) In the case of goods declared for a temporary admission procedure, see also section 19(5).

(6) In this section any reference to the breach of a requirement relating to a special Customs procedure is to—

(a) a breach, occurring while the procedure has effect, of the terms of the declaration for the procedure or of any other requirement imposed in relation to the procedure by or under Schedule 2, or

(b) a breach, occurring at any time after the declaration was made, of any other requirement imposed by an HMRC officer in relation to the goods for which the declaration was made.

(7) In this section “the normal rate” means the rate that, at the time of the declaration or breach (as the case may be), would be applicable if section 19(4) were ignored.

Goods not presented to Customs or Customs declaration not made

5

(1) If chargeable goods—

(a) are imported into the United Kingdom, and

(b) are not presented to Customs on import (if so required),

the goods are liable to forfeiture (as to which, see Part 11 of CEMA 1979) at the time of importation.

(2) If goods are liable to forfeiture as a result of—

(a) subsection (1), or

(b) paragraph 1(5) or 3(4) of Schedule 1 (no Customs declaration made),

a liability to import duty is incurred at the time at which the goods become liable to forfeiture.

Person liable to import duty

6

(1) If a Customs declaration is made in respect of any chargeable goods, the person in whose name the declaration is made is the person liable to import duty in respect of the goods.

(2) If a liability to import duty is incurred as a result of section 5 in respect of any chargeable goods, any person who is in possession or control of the goods when they enter the United Kingdom is liable to import duty in respect of the goods.

(3) In addition to any person liable as a result of subsection (1) or (2), each of the following persons is liable to import duty—

(a) a person on whose behalf a Customs declaration is made,

(b) a person liable as a result of provision made by section 21(6) (Customs agents),

(d) a person otherwise involved in a breach of a relevant Customs obligation.

(4) For this purpose a person is otherwise involved in a breach of a relevant Customs obligation if—

(a) the person provides false information in connection with a chargeable Customs declaration and the person knew, or ought reasonably to have known, that the information was false,

(b) the person (“A”) acted (whether as a Customs agent or otherwise) on behalf of another person who breached a relevant Customs obligation and A knew, or ought reasonably to have known, of the breach by that other person,

(c) the person participated in, or was otherwise involved in, a breach of a relevant Customs obligation and knew, or ought reasonably to have known, of the breach, or

(d) the person possesses or controls the goods at a time when there has been a breach of a relevant Customs obligation and the person knew, or ought reasonably to have known, of the breach.

(5) For the purposes of subsection (4)(a) a person (“P”) provides “false information in connection with a chargeable Customs declaration” if—

(a) P provides information to another person to enable that other person to make a Customs declaration,

(b) that other person makes the declaration, and

(6) For the purposes of subsection (4) there is “a breach of a relevant Customs obligation” if—

(a) there is a breach of a requirement imposed on any person that results in a liability to import duty, or

(b) circumstances otherwise arise that result in a liability to import duty,

and, in a case within paragraph (b) of this subsection, references to knowledge of the breach are to knowledge of those circumstances.

(7) If two or more persons are liable to import duty in any case, those persons are jointly and severally liable to import duty in that case.

Amount of import duty: the customs tariff, preferences, safeguarding etc

Amount of duty: introduction

7

(1) The amount of import duty applicable to any goods is to be determined in accordance with the customs tariff (see section 8), as amended or adjusted by provision made under any of the following sections—

(a) section 9 (preferential rates: arrangements with countries or territories outside UK),

(b) section 10 (preferential rates given unilaterally),

(d) section 12 (tariff suspension),

(e) section 13 (dumping of goods, foreign subsidies and increases in imports),

(f) section 14 (increases in imports or changes in price of agricultural goods), and

(g) section 15 (international disputes etc).

(2) See also—

(a) sections 16 to 18 (which deal with the valuation of goods, their place of origin and cases where amounts are expressed in a foreign currency), and

(b) section 19 (which enables provision to be made for full or partial relief from import duty).

The customs tariff

8

(1) The Treasury must make regulations establishing, and maintaining in force, a system which—

(a) classifies goods according to their nature, origin or any other factor,

(b) gives codes to the goods as so classified,

(c) specifies the rate of import duty applicable to goods falling within those codes (whether by a formula or otherwise), and

(d) contains rules for determining the amount of import duty applicable to those goods.

(2) This system is referred to in this Part as the customs tariff.

(3) The customs tariff may provide for the amount of any import duty applicable to any goods falling within any code to be determined by reference to either or both of the following—

(a) the value of the goods, and

(b) the weight or volume of the goods or any other measure of their quantity or size.

(3A) The provision that the customs tariff may make under subsection (1)(c), by virtue of section 32(7), includes provision specifying different rates of import duty applicable to goods falling within a code by reference to their nature, origin or any other factor.

(4) The customs tariff may include provision as to the meaning of any expression used in it.

(5) In considering the rate of import duty that ought to apply to any goods in a standard case, the Treasury must have regard to—

(a) the interests of consumers in the United Kingdom,

(b) the interests of producers in the United Kingdom of the goods concerned,

(d) the desirability of maintaining and promoting productivity in the United Kingdom, and

(e) the extent to which the goods concerned are subject to competition.

(6) In considering the rate of import duty that ought to apply to any goods in a standard case, the Treasury must also have regard to any recommendation about the rate made to them by the Secretary of State.

(7) In considering what recommendation to make, the Secretary of State must have regard to the matters set out in subsection (5)(a) to (e).

(8) In this section “a standard case” means a case other than one to which any of sections 9 to 15 or 19(4) apply (preferential rates, quotas, tariff suspension, safeguarding, etc).

(9) Regulations under this section may amend provision made under section 9 or 10 so as to provide that the rate of import duty that applies to goods in a standard case applies in any specified case to which either of those sections applies (instead of the rate of import duty for the time being applicable by virtue of provision made under either of them).

Preferential rates: arrangements with countries or territories outside UK

9

(1) If—

(a) Her Majesty's government in the United Kingdom makes arrangements with the government of a country or territory outside the United Kingdom, and

(b) the arrangements contain provision for the rate of import duty applicable to goods, or any description of goods, originating from the country or territory to be lower than the applicable rate in the customs tariff in its standard form,

the Treasury may make regulations to give effect to the provision made by the arrangements (whether by amending the customs tariff or otherwise).

(2) The reference here to the customs tariff in its standard form is to the tariff as it has effect without regard to any provision made under any of sections 10 to 15 or section 19(4).

(3) The power of the Treasury to make regulations under this section is exercisable only on the recommendation of the Secretary of State.

Preferential rates given unilaterally

10

(1) The Secretary of State may by regulations establish a scheme (“a trade preference scheme”) under which the rate of import duty applicable to goods, or any description of goods, originating from an eligible developing country is lower than the applicable rate in the customs tariff in its standard form.

(2) A trade preference scheme may—

(a) apply to one or more eligible developing countries,

(b) provide for the application of the lower rates to be subject to the meeting of specified conditions, and

(3) If a trade preference scheme is established under subsection (1), regulations under subsection (1)—

(a) must provide for a nil rate of import duty to be applicable to all goods originating from a least developed country, except arms and ammunition, and

(b) may make provision about the suspension and withdrawal of the application of the nil rate.

(4) In subsection (3)—

(a) “arms and ammunition” has the meaning specified in regulations made by the Secretary of State, and

(b) “suspension” and “withdrawal” may include the application of another rate that is lower than the applicable rate in the customs tariff in its standard form.

(5) The references in this section to the customs tariff in its standard form are to the tariff as it has effect without regard to any provision made under any of section 9, sections 11 to 15 or section 19(4).

(6) In Schedule 3—

(a) Part 1 defines “eligible developing country” and “least developed country” for the purposes of this section,

(b) Parts 2 and 3 contain lists for the purpose of those definitions, and

Quotas

11

(1) Regulations may make provision for determining the amount of import duty applicable to any goods that are subject to a quota.

(2) Goods are subject to a quota for the purposes of this section if—

(a) Her Majesty's government in the United Kingdom makes arrangements with the government of a country or territory outside the United Kingdom and the arrangements contain provision for the goods concerned to be subject to a quota, or

(b) the Treasury otherwise consider that it is appropriate for the goods concerned to be subject to a quota.

(3) Regulations may make any provision that the person making them considers appropriate for the purposes of this section, including (for example)—

(a) provision specifying the factors by reference to which a quota is to be determined,

(b) provision imposing conditions subject to which a quota has effect,

(c) provision for a quota in respect of specified goods to be subject to a licensing or allocation system (see also subsection (4)), and

(d) any other provision in relation to the administration of a quota.

(4) Regulations made under subsection (3) which make provision for a quota in respect of specified goods to be subject to a licensing or allocation system may include—

(a) provision authorising any public body to grant licences or determine a system for allocating the quotas,

(b) provision specifying the cases in which a person is eligible to make use of a quota,

(c) provision specifying the conditions subject to which any person may make use of a quota (including provision for the giving of a guarantee of a specified amount),

(d) provision authorising the conditions to be imposed by a licence or other document,

(e) provision requiring the payment of fees by any person in connection with any application for a licence or an allocation, and

(f) provision generally in relation to the administration of the licensing or allocation system.

(5) Any fees payable as a result of provision made under subsection (4)(e) must be paid into the Consolidated Fund.

(6) The power to make regulations under this section providing for a quota in respect of specified goods to be subject to a licensing or allocation system is exercisable by the Secretary of State.

(7) The power to make regulations under this section containing any other provision is exercisable by the Treasury; and, in considering what provision to include in the regulations, the Treasury must have regard to any recommendation made to them by the Secretary of State.

Tariff suspension

12

(1) The Treasury may by regulations make provision securing that, for a specified period, the rate of import duty applicable to specified goods is to be lower than the applicable rate in the customs tariff in its standard form.

(2) The regulations must provide that (subject to any exceptions) the Secretary of State is obliged—

(a) to consider a request made by any person for goods to be specified goods for the purposes of the regulations, and

(b) to make recommendations to the Treasury about the request.

(3) The regulations may—

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