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The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020

Type Statutory-Instrument

Publication 2020-12-15

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

Reform history JSON API PDF

Made: at 12.20 p.m. on 15th December 2020

Laid before the House of Commons: 16th December 2020

Coming into force in accordance with regulation 1

The Treasury, in exercise of the powers conferred by sections 24(3) and 26(1) of the Finance Act 2003 and sections 19, 23(3) and (7), 31(6), 32(7), (8), (10) and (13), 34(5), and 52(2) and (5) of, and paragraphs 3(5) and 6 of Schedule 1, paragraphs 3(1)(a), 6 and 10 of Schedule 6 and paragraph 1(3)(c) of Schedule 7 to, the Taxation (Cross-border Trade) Act 2018 , make the following Regulations.

The Treasury consider it appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the European Union that the following Regulations come into force on such day as the Treasury may by regulations under section 52 of that Act appoint.

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.

PART 1 — Introduction

Citation and commencement

1

These Regulations may be cited as the Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020 and come into force on such day as the Treasury may by regulations under section 52 of the Taxation (Cross-border Trade) Act 2018 appoint.

Interpretation

2

(1) In these Regulations—

“the Act” means the Taxation (Cross-border Trade) Act 2018;

“claimant” means a person who makes a claim for relief;

“claim for relief” means a claim made in accordance with Part 3 or, where applicable, Part 4 that relief be granted in respect of goods;

“consignee” means a person to whom goods which have been imported are to be delivered as the final recipient of the goods;

“eligibility criteria” means criteria described in a section of the UK Reliefs document which must be met in order that a claim for relief under the section may be granted;

“Import Duty Regulations” means the Customs (Import Duty) (EU Exit) Regulations 2018 ;

“prior approval” means an eligibility criterion or a relief condition which requires that a relevant person—falls within a class of persons described in a section of the UK Reliefs document; orholds an approval which may be granted by HMRC;

“relevant person” means a claimant, a consignee, a transferee or person to whom goods are hired or loaned;

“relief” means full or partial relief from a liability to import duty;

“relief condition” means a condition described in a section of the UK Reliefs document which is expressed to apply to a relevant person where a claim for relief under the section is granted by HMRC;

“transferee” means a person, other than a claimant or consignee, who may use goods in respect of which a claim for relief has been, or may be, granted;

“UK Reliefs document” means the document entitled “United Kingdom Customs Tariff: Reliefs from Import Duty”, version 1.6, dated 9th November 2023 which includes sections that describe—cases where a claim for relief may apply, expressed by reference to—the goods to which the section applies;the persons who may be a claimant or consignee for the purposes of the section; andthe eligibility criteria which apply for the purposes of the section;any relief conditions which apply for the purposes of the section; andwhether relief is full or partial relief in any case.

(2) In these Regulations, a notice or notification means one made in writing and a requirement to notify is to be read accordingly.

(3) A notice published ... under these Regulations may make different provision for different cases or different purposes.

PART 2 — Application, claims, waivers, prior approvals and conditions

Reliefs – application to chargeable goods in Parts 2 to 6

3

(1) Subject to paragraph (2), this Part and Parts 3 to 6 apply to chargeable goods where—

(a) a Customs declaration is made in respect of the goods for the free-circulation procedure and the declaration is accepted; and

(b) a liability to import duty is incurred in respect of the goods.

(2) This Part and Parts 3 to 6 do not apply to chargeable goods where—

(a) a liability to import duty in respect of the goods is incurred by virtue of section 5(2) of the Act as a result of a relevant failure; and

(b) an HMRC officer is satisfied that the person who caused the relevant failure did so for the purposes of—

(i) avoiding, or enabling any other person to avoid, any Customs obligation that would have applied if the relevant failure had not occurred;

(ii) preventing a liability to import duty or charges being incurred by any person; or

(iii) preventing the application of any non-tariff trade policy measure or agricultural policy measure.

(3) A relevant failure occurs where any of the following apply—

(a) section 5(1) of the Act (goods not presented to Customs);

(b) paragraph 1(5) of Schedule 1 to the Act (Customs declaration not made within the 90 day period); or

(4) In this regulation—

“agricultural policy measure” means a provision made by or under any enactment relating to the import and export of the goods specified at points (1), (2) and (3) of the document entitled “Sensitive Goods (version 2.0)”, dated 1st June 2022” ;

“charges” means—fees under Part 14 of the Import Duty Regulations;interest payable for late payment of import duty; andpenalties under Part 3 of the Finance Act 2003;

“Customs obligation” means any obligation or requirement imposed by or under—the Act in relation to a duty of customs; orCEMA 1979 ;

“non-tariff trade policy measure” means a provision made by or under any enactment relating to government policy in respect of international trade in goods, other than provisions relating to the amount of import duty.

Granting claims for relief

4

A claim for relief must be granted by HMRC if—

(a) the claim is made by reference to a case described in a section of the UK Reliefs document;

(b) the goods to which the claim relates are of a type which fall within the description of goods given in the section;

(d) where applicable, the claimant is not also the consignee of the goods and the consignee falls within the description of consignee given in the section; and

(e) subject to regulation 5, the eligibility criteria of the section are met.

Waiver of eligibility criteria

5

(1) HMRC may grant a claim for relief even where an eligibility criterion is not met if—

(a) the criterion is described in the section of the UK Reliefs document as being subject to “exceptional waiver”; or

(b) the criterion—

(i) is described in a section of the UK Reliefs document which is described as “Returned Goods Relief”; and

(ii) provides that the goods to which the section applies must be imported no more than 3 years after the date on which they were exported, and

HMRC consider that by reason of circumstances described in the relevant section of the UK Reliefs document, it would be reasonable to allow the criterion to be waived.

(2) A claimant may apply to HMRC for approval of a waiver in accordance with paragraph (1).

Prior approvals: applications and transitional provision

6

(1) This regulation applies where a person is required to hold a prior approval granted by HMRC.

(2) The person may apply to HMRC for the prior approval to be granted.

(3) HMRC must grant the prior approval if the conditions set out in the section of the UK Reliefs document in relation to granting the approval are met.

(4) Paragraph (5) applies where—

(a) HMRC issued an approval (“the EU approval”) in respect of a case (“the EU case”) of a relief from a liability to an EU customs duty;

(b) the EU case is equivalent to a case for relief (“the UK case”) set out in a section of the UK Reliefs document; and

(5) Subject to paragraph (6), a person who holds the EU approval is to be treated as a person who holds the prior approval required for the purposes of the UK case.

(6) Paragraph (5) does not apply if the person to whom the EU approval was granted does not satisfy the eligibility criteria which must be met by applicants for prior approval for the purposes of the UK case.

(7) A prior approval does not apply in relation to a claim for relief in relation to goods which were presented to Customs on import more than one year before the grant of the approval.

Relief conditions

7

(1) Where a section of the UK Reliefs document includes a relief condition, any claim for relief is granted subject to compliance with the condition by each person to whom the condition is described in the section as applying.

(2) Paragraphs (3) and (4) apply where—

(a) a relief condition provides that the goods to which a section of the UK Reliefs document applies may not be transferred, hired or loaned without the approval of HMRC; and

(b) the consignee intends to make such a transfer, hire or loan.

(3) The consignee may apply to HMRC for approval of the transfer, hire or loan.

(4) Where a relief condition would apply to a transferee or person to whom the goods are hired or loaned (“P”) if a transfer, hire or loan were approved, HMRC may approve the transfer, hire or loan subject to HMRC being satisfied that P is aware that P must comply with the relief condition.

(5) HMRC may require a person to whom a relief condition would apply if relief is granted to provide a guarantee to be drawn upon by HMRC in circumstances where a liability to import duty is incurred in consequence of a breach of the condition.

(6) Part 10 of the Import Duty Regulations applies to such a guarantee.

(7) Paragraph (8) applies where—

(a) a relief condition is described in a section of the UK Reliefs document as being subject to “exceptional waiver or variation”; and

(b) the person to whom the condition applies, or would apply, makes an application to HMRC for approval of a waiver or variation of the condition.

(8) HMRC may waive or vary the condition, as the case may be, if HMRC consider, that by reason of circumstances described in the relevant section of the UK Reliefs document, it would be reasonable to do so.

Applications for waivers, variations and prior approvals

8

Regulations 85 to 91 of the Import Duty Regulations apply in relation to an application for approval of—

(a) a waiver under regulation 5(2);

(b) a prior approval under regulation 6(2);

(d) a guarantee under regulation 7(5); and

(e) a waiver or variation under regulation 7(7)(b).

PART 3 — General claims for relief

Making a claim

9

(1) A claim for relief in respect of goods may be made—

(a) in the Customs declaration made in respect of the goods or at the same time as that declaration is made;

(b) where applicable, in accordance with Part 4; or

(c) at any time before the expiry of the period of 3 years beginning with the date on which notification is given by HMRC of the liability to import duty in respect of the goods.

(2) But no claim for relief may be made where a claim for the relief was previously made and determined.

(3) A claim must be made in the form and manner specified in a notice published by HMRC.

Information and evidence in relation to claims

10

(1) Except where a claim is made in accordance with Part 4, a claim for relief must identify—

(a) the case for relief relied upon which is described in a section of the UK Reliefs document;

(b) the goods in respect of which the claim is made;

(d) the consignee, if that person is different from the claimant; and

(e) how any eligibility criteria applicable to the relief claimed are met.

(2) Identification of the goods must be made by way of providing the applicable classification code for the goods as set out in the customs tariff .

(3) A claimant must provide evidence to support the matters in paragraph (1).

(4) A claim for relief is treated as not made unless the claimant also provides to the satisfaction of an HMRC officer evidence to support the matters in paragraph (1).

(5) Where a relief condition would apply to a relevant person if a claim for relief were granted, HMRC may require the claimant to provide to the satisfaction of an HMRC officer evidence to support how the relevant person intends to comply with the condition.

(6) HMRC may publish a notice setting out the evidence required in support of a claim.

Notifications further to a claim for relief

11

(1) This regulation applies to a claim for relief other than a claim made under regulation 13 or 14.

(2) Notification of receipt of the claim for relief must be given by HMRC to the claimant—

(a) as soon as practicable after the date on which HMRC receive the claim and the evidence required in support of the claim; and

(b) in any event by no later than the expiry of the period of 30 days beginning with that date.

(2A) Where a claim for relief is made in the Customs declaration made in respect of the goods and the declaration is accepted before the expiry of the period in paragraph (2)(b), the notification of receipt is to be treated as having been given under paragraph (2).

(2B) Where a claim for relief is made in the Customs declaration made in respect of the goods and the declaration is rejected before the expiry of the period in paragraph (2)(b), the claim is to be treated as if it had never been made.

(3) Subject to regulation 15(2) and 16(2), notification that HMRC have determined to grant or refuse a claim for relief must be given to the claimant, and HMRC must do so—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) as soon as practicable after the date on which notification is given under paragraph (2) and in any event by no later than the expiry of the period of 120 days beginning with that date.

(3A) Paragraphs (3B) and (3C) apply where a claim for relief is made in a Customs declaration.

(3B) In relation to a claim for partial relief or where HMRC have determined to refuse a claim, a notification of liability to import duty in respect of the goods to which the claim relates is to be treated as if it were also the notification of determination required under paragraph (3) unless that notification of liability has been given before the date of the determination.

(3C) In relation to a claim for relief that is granted where no notification of liability to import duty is given in respect of the goods to which the claim relates, discharge of the goods from the free-circulation procedure is to be treated as the notification of determination required under paragraph (3) unless a notification of determination has been given in respect of the claim before the goods were discharged.

(4) Subject to paragraph (4A), reasons for a refusal must be given with the notification of the determination.

(4A) Where a claim for relief is made in a Customs declaration made in respect of the goods and the claim is refused—

(a) paragraph (4) is to be disregarded, and

(b) reasons for refusal of the claim must be given to the claimant on request.

(5) Where HMRC fail to comply with paragraph (2) or (3), the claim is to be treated as refused.

PART 4 — Special claims for relief

Goods imported by post

12

(1) This regulation applies to goods imported by post where the outer packaging of the goods is marked to show clearly that relief may be applicable to the goods.

(2) HMRC must notify the recipient of the posted goods as soon as practicable after the goods are imported—

(a) that relief may be applicable to the goods;

(b) how a claim for relief may be made by the consignee; and

(3) HMRC may publish a notice setting out—

(a) the evidence required to support a claim; and

(b) the type of marking on the outer packaging of goods which is sufficient to show clearly that a relief may be applicable to the goods contained within the packaging.

(4) Where HMRC determine to grant the relief claimed, notification of the grant is given by HMRC giving consent to the delivery of the goods to the consignee.

Goods where Customs declaration made orally

13

(1) This regulation applies to chargeable goods in respect of which a Customs declaration is made orally, as provided for by regulation 17 of the Import Duty Regulations, in cases within regulations 18 and 19 of those Regulations.

(2) On making an oral declaration in accordance with regulation 17(3)(a) of the Import Duty Regulations, an individual is treated as making a claim for relief in respect of the chargeable goods.

(3) When an HMRC officer gives the information described in regulation 17(3)(b) of the Import Duty Regulations, HMRC are treated as granting the claim for relief.

(4) Where the claim is for partial relief, HMRC must give notification of liability to import duty in respect of the goods to which the claim relates with the information described in regulation 17(3)(b) of the Import Duty Regulations.

(5) Where an HMRC officer does not give the information described in regulation 17(3)(b) of the Import Duty Regulations—

(a) the claim is treated as refused; and

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