The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019

Made: 4th September 2019

Laid before the House of Commons: 5th September 2019

Coming into force in accordance with regulation 1

The Treasury make regulations 1 to 8 and 10 to 19 in exercise of the powers conferred by sections 24(3) and 26(1) of the Finance Act 2003 and sections 23(3) and (7), 32(7), (8), (10) and (13), 33(8), 34(5) and (6), 35(2) to (4), 36(8) and (9)(d), 51(1), 52(2) and (5) and 56(1) of, and paragraphs 1(7), 3(1) and (5), 6, 7(1) and 9(1) and (2) of Schedule 1, paragraphs 2(1) and (3), 6(1), 10, 12, 14, 15 and 16 of Schedule 2, paragraphs 3(1)(b), 5 and 6 of Schedule 6, and paragraph 1(3)(c) of Schedule 7 to, the Taxation (Cross-border Trade) Act 2018 .

The Commissioners for Her Majesty's Revenue and Customs make regulations 1(1), (2) and (3)(a) and 9 in exercise of the powers conferred by section 64(1A) of the Customs and Excise Management Act 1979 .

The Treasury consider it appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the EU, to make provisions under section 52(5) of the Taxation (Cross-border Trade) Act 2018 in consequence of that Act.

In accordance with section 52(2) of the Taxation (Cross-border Trade) Act 2018, the Treasury and the Commissioners for Her Majesty's Revenue and Customs consider it appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the EU, that provisions of these Regulations come into force on such day as the Treasury may appoint by regulations under section 52 of that Act.

PART 1 — Introduction

Citation and commencement

1

• (1) These Regulations may be cited as the Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019.

• (2) Subject to paragraph (3), these Regulations come into force on such day as the Treasury may by regulations under section 52 of the Taxation (Cross-border Trade) Act 2018 appoint.

• (3) The following regulations come into force on 3rd October 2019—

• (a) this regulation;

• (b) regulation 11(1), (10), (12), (16) and (18) (amendment of import duty regulations relating to authorisations);

• (c) regulation 12(1), (8), (10)(a) and (c), (11), and (13) (amendment of the special procedure regulations relating to authorisations);

• (d) regulation 14(1) to (3) (amendment of export regulations relating to authorisations);

• (e) regulation 15 (amendment of the Customs (Import Duty, Transit and Miscellaneous Amendments) (EU Exit) Regulations 2019);

• (f) regulation 17 (amendment of the Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019); and

• (g) regulation 19 (amendment of the Customs (Contravention of a Relevant Rule) (Amendment) (EU Exit) Regulations 2018).

PART 2 — Banana Weight Certificates

Interpretation

2

In this Part—

• “Banana Weight Certificate” has the meaning given by regulation 3(1);

• “Customs obligation” has the meaning given by regulation 2 of the import duty regulations;

• “established in the United Kingdom” means—in the case of an individual, where the individual is resident in the United Kingdom; orin all other cases, where the person—has a registered office in the United Kingdom; orhas a permanent place in the United Kingdom from which the person carries out activities for which the person is constituted to perform;

• “fresh bananas” means the goods specified in a notice published by HMRC Commissioners under regulation 6(1);

• “import duty regulations” means the Customs (Import Duty) (EU Exit) Regulations 2018 ;

• “simplified Customs declaration process” has meaning given by regulation 30 of the import duty regulations;

• “simplified Customs declaration” has the meaning given by regulation 14 of the import duty regulations.

• “transitional simplified Customs declaration” has the meaning given by regulation 14 of the import duty regulations;

• “transitional EIDR simplified Customs declaration process” has the meaning given by regulation 29A(1) of the import duty regulations.

Banana Weight Certificates

3

• (1) A person (“an Authorised Banana Weigher”) may, if authorised to do so by HMRC, issue certificates specifying the weight of consignments of fresh bananas (“a Banana Weight Certificate”).

• (2) Such certificates must be issued in compliance with any conditions contained in the authorisation.

• (3) Authorisation as an Authorised Banana Weigher is to be treated for the purposes of Part 9 of the import duty regulations as a matter requiring approval under those regulations, subject to the modification in paragraph (4).

• (4) For the purposes of regulation 89(1) of the import duty regulations, the specified period in relation to an application for authorisation as an Authorised Banana Weigher is 30 days after the date on which the application was received by HMRC.

Eligibility for authorisation or approval as an Authorised Banana Weigher

4

• (1) A person may only be an Authorised Banana Weigher if—

• (a) the person is established in the United Kingdom;

• (b) the person is involved in the import, carriage, storage or handling of fresh bananas;

• (c) in the opinion of an HMRC officer, the person has access to and control over the appropriate weighing equipment required to provide an accurate weight for fresh bananas;

• (d) an HMRC officer is satisfied that the person will exercise proper conduct of the operations necessary to comply with the requirements of banana weighing.

• (2) For the purposes of considering whether the person will exercise proper conduct of operations necessary to comply with the requirements of banana weighing, the matters that an HMRC officer may take into account include (for example)—

• (a) whether, in the opinion of an HMRC officer, the person's financial standing makes the applicant suitable to carry out banana weighing;

• (b) whether the person, or any directors or senior employees of the person, has or have been involved in a breach of an obligation relating to tax or of a Customs obligation, which in the opinion of an HMRC officer is—

• (i) a serious breach having regard to the circumstances and nature of any breach and the number of any breaches; and

• (ii) relevant to the suitability of the person to carry out banana weighing;

• (c) whether the person, or any directors or senior employees of the person, has or have any criminal conviction which in the opinion of an HMRC officer is—

• (i) serious having regard to the type of conviction; and

• (ii) relevant to the suitability of the applicant to carry out banana weighing;

• (d) whether the person maintains a logistical system and records that identify the movement of, and transactions in, consignments of bananas to which Banana Weight Certificates relate, and facilitates compliance with Customs obligations.

Conditions for approval as an Authorised Banana Weigher

5

Approval as an Authorised Banana Weigher is granted subject to the following conditions—

• (a) the person must notify HMRC in advance if that person intends to carry out the weighing of a consignment of fresh bananas for the purpose of issuing a Banana Weight Certificate;

• (b) the person must issue the relevant Banana Weight Certificates without delay after carrying out any banana weighing; and

• (c) such other conditions as may be specified in the approval notification.

Requirement to provide a Banana Weight Certificate

6

• (1) This regulation applies in relation to bananas of a description specified in a notice which must be published by HMRC Commissioners (“fresh bananas”).

• (2) Any Customs declaration for the free-circulation procedure made in respect of fresh bananas must be accompanied by a Banana Weight Certificate, except where paragraph (3) applies.

• (3) Paragraph (2) does not apply where,

• (a) at the time the Customs declaration for the free-circulation procedure is made in respect of fresh bananas, the person making the declaration is a person authorised to use the simplified Customs declaration process and makes the Customs declaration for the free-circulation procedure in respect of fresh bananas using the simplified Customs declaration process ; or

• (b) the Customs declaration is made using the transitional EIDR simplified Customs declaration process.

• (4) Where paragraph (3) applies—

• (a) a provisional declaration of weight must be provided in the simplified Customs declaration or transitional simplified Customs declaration, as the case may be; and

• (b) the person making the simplified Customs declaration or transitional simplified Customs declaration must provide to HMRC a Banana Weight Certificate in respect of the fresh bananas that are the subject of that declaration within 10 days beginning with the date on which the simplified Customs declaration or transitional simplified Customs declaration is accepted by HMRC.

• (5) In this regulation—

• “a Banana Weight Certificate previously issued” includes a Banana Weight Certificate issued under the EU Customs Code prior to IP completion day;

• “EU Customs Code” means—Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code;Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code; ...Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code ; and Commission Delegated Regulation (EU) 2016/341 of 17 December 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards transitional rules for certain provisions of the Union Customs Code where the relevant electronic systems are not yet operational and amending Delegated Regulation (EU) 2015/2446;

• “provisional declaration of weight” means either—the weight, as adjusted for the size of the consignment if that adjustment can be readily determined, that appears on a Banana Weight Certificate previously issued to the person making the simplified Customs declaration or transitional simplified Customs declaration if the bananas that are the subject of that Banana Weight Certificate are the same as those for which the declaration is being made in respect of—the type of packaging used; andthe place of origin; orif—the adjustment mentioned in sub-paragraph (a) cannot be readily determined; orthe person making the simplified Customs declaration or transitional simplified Customs declaration is importing fresh bananas for the first time;the weight that has been itemised in a travel document issued by the person responsible for the carriage of the fresh bananas being declared which specifies the destination and recipients of the fresh bananas.

PART 3 — Reviews and appeals

Reviews and appeals

7

• (1) The decisions listed in paragraph (2) are to be treated as if they were listed in Schedule 5 to the Finance Act 1994 (decisions subject to review and appeal) .

• (2) The decisions referred to in paragraph (1) are—

• (a) any decision made under EU Customs legislation—

• (i) which corresponds to the description of a decision in paragraph 1(aa) to (e), (h) or (i) of Schedule 5 to the Finance Act 1994;

• (ii) in relation to any goods, as to whether or not the entry, unloading, transhipment or transit of the goods, or their release by or to any person or for any purpose, is to be allowed or otherwise permitted;

• (iii) as to whether or not, in any particular case, a fee is to be charged to any person or as to the amount of any such fee;

• (iv) in relation to a decision falling within paragraphs (i) to (iii) of this sub-paragraph, as to the conditions subject to which that decision is made or, as the case may be, the matters to which that decision relates have effect;

• (v) as to the time at which, or the period within which, any obligation to do anything required or authorised by EU Customs legislation is to be complied with; or

• (vi) as to whether or not a decision falling within paragraphs (i) to (v) of this sub-paragraph is to be varied, suspended or revoked, including a decision as to whether or not the time at which any such decision is to take effect is to be deferred, and a decision as to whether or not a licence, authorisation or approval is to be suspended or revoked or the terms of a licence, authorisation or approval are to be varied;

• (b) any decision, so far as it is made under any provision made by or under the Taxation (Cross-border Trade) Act 2018, as to whether or not any person is to be required to give any guarantee for the fulfilment, in whole or in part, of any obligation to pay any import duty and excise duty , or as to the form, amount or conditions of any such guarantee.

• (3) In this regulation—

• “EUCL” means the direct EU legislation referred to in paragraph 1(1) of Schedule 7 to the Taxation (Cross-border Trade) Act 2018;

• “EU Customs Code” has the same meaning as it has in regulation 6;

• “EU Customs legislation” means—the EU Customs Code as it had effect before IP completion day except the EUCL; andafter IP completion day, the EU Customs Code except the EUCL.

PART 4 — Pleasure craft

Amendment of the Pleasure Craft (Arrival and Report) Regulations 1996 and transitional provision

8

• (1) The Pleasure Craft (Arrival and Report) Regulations 1996 are amended in accordance with paragraphs (2) and (3).

• (2) In regulation 3 (application), for “customs territory of the European Union or from a territory listed in the Schedule”, substitute “ United Kingdom other than the Isle of Man ”.

• (3) Revoke the Schedule.

• (4) Where a pleasure craft has crossed the limits of a port of the United Kingdom before this regulation comes into force, the Pleasure Craft (Arrival and Report) Regulations 1996 apply as if the amendments in paragraphs (2) and (3) do not have effect.

• (5) In paragraph (4)—

• “pleasure craft” has the meaning given in regulation 2 of the Pleasure Craft (Arrival and Report) Regulations 1996;

• “port” has the meaning given in section 1 of the Customs and Excise Management Act 1979 .

Clearance of ships and aircraft

9

• (1) Subject to paragraph (2), the requirement to obtain clearance for departure in section 64(1) of the Customs and Excise Management Act 1979 (clearance outwards of ships and aircraft) does not apply to a vehicle which departs from the United Kingdom for a place in the Isle of Man.

• (2) Paragraph (1) does not apply to a vehicle which will arrive at the Isle of Man after first arriving at a place outside the United Kingdom.

PART 5 — Miscellaneous amendments

Amendment of the Customs (Temporary Storage Facilities Approval Conditions and Miscellaneous Amendments) (EU Exit) Regulations 2018

10

• (1) The Customs (Temporary Storage Facilities Approval Conditions and Miscellaneous Amendments) (EU Exit) Regulations 2018 are amended as follows.

• (2) In the heading to regulation 5 (amendment of the Control of Movement Regulations 1984) after “Movement” insert “ of Goods ”.

• (3) In regulation 5—

• (a) in paragraph (1) after “Movement” insert “ of Goods ”;

• (b) in paragraph (3)(c) in the text omitted, after “their place” insert “ of importation and a place ”.

• (4) After paragraph 3 of Schedule 2 insert—

(4) Where there is any liability, or potential liability, to pay import duty, but not excise duty, in respect of the import of goods which are or have been stored in the TSF, the person who is responsible for operating the TSF must give HMRC a comprehensive guarantee covering that liability, or potential liability, in accordance with Part 10 of the import duty regulations. (5) Where there is any liability, or potential liability, to pay both import duty and excise duty in respect of the import of goods which are or have been stored in the TSF, the person who is responsible for operating the TSF must give HMRC a comprehensive guarantee covering that liability, or potential liability, in accordance with Part 10 of the import duty regulations as modified by paragraph 6. (6) For the purposes of paragraph 5— (a) Part 10 of the import duty regulations is modified as follows— (i) other than in regulation 97(2), for “import duty”, wherever it appears, regard as substituted “ import duty and excise duty ”; (ii) in regulation 95(1)(a), regard “discharge of the liability” as “discharge of the liability to pay import duty”; (iii) after regulation 100(1)(b), regard as inserted— (ba) where the goods have been placed under a duty suspension arrangement and— (i) all the liability to import duty to which the guarantee relates and, where regulation 95(2) (guarantee in relation to charges) applies, any charges in relation to that liability have been paid in full; or (ii) the potential liability to import duty to which the guarantee relates has been extinguished on the discharge of a special Customs procedure; (iv) in regulation 100(1)(c)— (aa) in paragraphs (i) and (ii), for “the duty” regard as substituted “ the import duty ”; (bb) at the end of paragraph (ii), regard “and” as omitted; (cc) at the end of paragraph (iii), for “or” regard as substituted “ and ” and regard as inserted— (iv) the part of the specified amount which is equivalent to the amount of the liability, or potential liability, to excise duty is paid in full or the goods to which that part relates have been placed in a duty suspension arrangement; or (b) a reference to a “guarantee” in the import duty regulations, wherever it appears, should be construed in accordance with the modifications made by sub-paragraph (a). (7) In this Schedule— - “duty suspension arrangement” has the meaning given in regulation 3(1) of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010 ; - “the import duty regulations” means the Customs (Import Duty) (EU Exit) Regulations 2018.

Amendment of the Customs (Import Duty) (EU Exit) Regulations 2018

11