Source: http://www.legislation.gov.uk/uksi/2018/1249/made/data.xht?view=snippet&wrap=true
Timestamp: 2019-07-18 14:10:10
Document Index: 705940315

Matched Legal Cases: ['art 1', 'art 15', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'ART 2', 'art 9', 'art 1', 'art 10', 'art 1', 'art 1', 'art 1', 'art 1', 'art 10', 'art 1', 'art 1', 'art 1', 'art 1', 'ART 3', 'art 4', 'ART 5', 'art 1', 'art 9', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 2', 'art 3', 'art 4', 'art 5']

The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 No. 1249 xmlns:atom="http://www.w3.org/2005/Atom"
1.—(1) These Regulations may be cited as the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018.
(2) Subject to paragraph (3), these Regulations come into force on such day as the Treasury may by regulations under section 52 of the Act appoint.
(3) The following regulations come into force on 2nd January 2019—
(b)regulation 2 (interpretation), insofar as it relates to the provisions specified in sub-paragraphs (c) to (j);
(c)regulation 3(2), (3) and (4) (authorisation);
(d)regulation 9 (eligibility for authorisation or approval);
(e)regulation 10 (period for which an authorisation is to have effect);
(f)regulations 19 to 21, 22(2), (3)(b) and (4) and 23(1) (authorisation to declare goods for an inward processing procedure);
(g)regulations 27, 28(1), (4)(b) and (5) to (10), 29(1) to (3) and (7)(c) and 30 (authorisation to declare goods for an outward processing procedure);
(h)regulations 32 and 33 (authorisation to declare goods for an authorised use procedure);
(i)regulations 36, 37, 38(3) and 39 (authorisation to declare goods for a temporary admission procedure);
(j)regulations 45 and 46 (authorisation to use equivalent goods).
“the Act” means the Taxation (Cross-border) Trade Act 2018;
“the import duty regulations” means the Customs (Import Duty) (EU Exit) Regulations 2018(2);
“accompanied baggage” means baggage which—
accompanies an individual when arriving in the United Kingdom; or
would have so accompanied an individual had the baggage not been delayed in transit to the United Kingdom;
“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” published on 27 November 2018(3);
“approval notification” means a notification issued under regulation 89 of the import duty regulations;
“charges” has the meaning given in regulation 94 of the import duty regulations;
“classification code” means the eight digit code given to goods in accordance with section 8(1)(b) of the Act;
“Customs obligation” means any obligation or requirement imposed by or under—
Part 1 of the Act;
CEMA 1979(4);
the EU Customs Code as it had effect before exit day; or
after exit day—
the EU Customs Code except the EUCL; or
the EUCL insofar as it continues to have effect as provided by Part 15 of the import duty regulations;
“customs warehouse” means premises owned, occupied or otherwise used by a person who is approved by HMRC under these Regulations to operate the premises as a place to keep goods declared for a storage procedure(5);
“the Delegated Regulation” means the 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 provisions of the Union Customs Code;
“equivalent chargeable goods” means chargeable goods(6) that are of the same, or of substantially the same, description as domestic goods(7) intended to be declared for an outward processing procedure(8);
“equivalent goods” means equivalent domestic goods(9) and equivalent chargeable goods;
“established in the United Kingdom” means—
in the case of an individual, where the individual is resident in the United Kingdom; or
in all other cases, where the person—
has a registered office in the United Kingdom; or
has a permanent place in the United Kingdom from which the person carries out activities for which the person is constituted to perform;
“EUCL” means the direct EU legislation referred to in paragraph 1(1) of Schedule 7 to the Act;
“EU Customs Code” means—
the Delegated Regulation; and
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;
“holder of a procedure” means—
a person in whose name, or on whose behalf, goods have been declared for a relevant non-transit Part 1 procedure; or
a person to whom rights and obligations in relation to goods declared for a relevant non-transit Part 1 procedure have been transferred under regulation 42,
and “holder of the procedure” is to be construed accordingly;
“non-commercial goods” means goods—
which are provided by one individual to another;
where no payment is made, directly or indirectly, for the goods by the recipient;
which are for the personal use of the recipient; and
which do not form part of a series of consignments of goods made between the individuals;
“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;
“non-transit Part 1 procedure” means—
a Customs procedure(10) other than a transit procedure(11); or
an outward processing procedure;
“Part 1 procedure” means a Customs procedure or an outward processing procedure;
“personal gifts” means goods contained within accompanied baggage of a qualifying traveller which—
are intended for an individual’s personal use;
are not imported for commercial purposes; and
do not form part of a series of consignments of goods imported by the qualifying traveller;
“private customs warehouse” means a customs warehouse that may only be used to store goods by the person approved to operate that warehouse;
“processed goods” means goods which have been released to a relevant non-transit Part 1 procedure and processed in accordance with that procedure;
“public customs warehouse” means a customs warehouse that may be used to store goods by any person;
“qualifying traveller” means an individual who—
is not resident in the United Kingdom and is arriving in the United Kingdom for a temporary stay; or
is resident in the United Kingdom and is returning after a temporary stay outside the United Kingdom;
“relevant non-transit Part 1 procedure” means—
a special Customs procedure(12) other than a transit procedure; or
“replacement goods” has the meaning given in regulation 5(3);
“sensitive goods” means the goods of a type listed in the document entitled “Sensitive Goods” published on 27 November 2018(13);
“standard exchange system” has the meaning given in regulation 5(3);
“the temporary admission document” means the document entitled “Temporary Admission: Eligible Goods and Conditions for Relief” published on 27 November 2018(14);
“UCC” means Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code.
(2) For the purposes of these Regulations references to “process” (however expressed) include an operation of a type described in paragraph 11 of Schedule 2 to the Act.
PART 2Authorisation and Approval
3.—(1) A person must not carry out an activity specified in paragraph (2) unless that person is authorised or approved to do so in accordance with these Regulations.
(2) The specified activities are—
(a)operating premises as a place to keep goods declared for a storage procedure;
(b)declaring goods for—
(i)an inward processing procedure(15);
(ii)an outward processing procedure(16);
(iii)an authorised use procedure(17); or
(iv)a temporary admission procedure(18).
(3) Subject to regulation 8, the activities specified in paragraph (2) are to be treated for the purposes of Part 9 of the import duty regulations as matters requiring approval under those Regulations.
(4) The period specified in regulation 89(2)(a) of the import duty regulations may be extended by a further period of up to one year where—
(a)the application is—
(i)an application for authorisation to declare goods for an inward processing procedure in relation to which an examination of the available evidence is required for the purposes of regulation 20(1)(a); or
(ii)an application for authorisation to declare goods for an outward processing procedure to which regulation 27 applies; and
(b)HMRC notify the applicant that such an extension will be made.
Treatment of a declaration as an application for authorisation
4.—(1) Subject to regulation 35, a person in whose name goods are declared for a relevant non-transit Part 1 procedure is to be treated for the purposes of these Regulations as making an application for authorisation to declare the goods for that procedure where—
(a)that person is not so authorised and either—
(i)that person gives a single guarantee in accordance with Part 10 of the import duty regulations; or
(ii)there is no requirement for any person to give a guarantee by virtue of regulation 101 of those Regulations; and
(b)the declaration—
(i)is of a type specified in paragraph (2);
(ii)is not one to which regulation 6 or 7 applies; and
(iii)is made in accordance with—
(aa)any provision made by or under Schedule 1 to the Act; or
(bb)in the case of a declaration of goods for an outward processing procedure, any provision that applies by virtue of regulation 13.
(2) The specified types of declaration are a declaration of goods for—
(a)a temporary admission procedure;
(b)an authorised use procedure;
(c)an outward processing procedure where the goods are to be exported for repair and—
(i)the goods are non-commercial goods or personal gifts which are to be released to the free-circulation procedure(19) following processing; or
(ii)the goods are not sensitive goods; or
(d)an inward processing procedure where the goods are not sensitive goods.
Treatment of a declaration as an application to amend an authorisation
5.—(1) Subject to regulation 7, where the conditions specified in paragraph (2) are met, a person in whose name goods are declared for the free-circulation procedure is to be treated, for the purposes of regulation 91(2)(a) of the import duty regulations, as making an application to amend an authorisation to declare goods for an outward processing procedure (“the authorisation”) so as to authorise the use of the standard exchange system in accordance with regulation 29.
(2) The specified conditions are that—
(a)the person in whose name the goods are declared is not so authorised and either—
(ii)there is no requirement on any person to give a guarantee by virtue of regulation 101 of those Regulations;
(b)the declaration is made—
(i)in the name of the person authorised to declare goods under the authorisation; and
(ii)in accordance with any provision made by or under Schedule 1 to the Act; and
(c)the goods declared for the free-circulation procedure are replacement goods.
(3) For the purposes of this regulation, “standard exchange system” means the import of goods to replace defective domestic goods that are to be, or have been, declared for an outward processing procedure and “replacement goods” means the goods that are imported for that purpose.
Cases where a declaration is not to be treated as an application for authorisation
6.—(1) Where any of paragraphs (2) to (4) applies, a declaration of goods for a relevant non-transit Part 1 procedure is not to be treated by regulation 4 as an application for authorisation.
(2) This paragraph applies where, by virtue of regulation 23, liability to import duty is to be determined by reference to the goods as they stood when the declaration was made.
(a)the declaration is for a temporary admission procedure;
(b)the goods fall within section 27 of the temporary admission document (other goods – no economic effect); and
(c)in the opinion of an HMRC officer(20) it is not appropriate for the declaration to be treated as an application for authorisation.
(a)the declaration is—
(i)an oral declaration of goods for a temporary admission procedure under regulation 21 of the import duty regulations; or
(ii)for a temporary admission procedure by conduct under regulation 27 of the import duty regulations;
(b)the declaration relates to goods that are means of transport or spare parts, accessories and equipment for means of transport; and
(c)in the opinion of an HMRC officer there is a risk that the person in whose name the declaration is made will be involved in a breach of a Customs obligation.
(5) Where a declaration is not to be treated as an application for authorisation by virtue of paragraph (4) HMRC must notify the person in whose name the declaration is made without delay after presentation of the goods.
Cases where a declaration is not to be treated as an application for authorisation or for amendment
7.—(1) Where paragraph (2) applies, a declaration—
(a)is not to be treated by regulation 4 as an application for authorisation; and
(b)is not to be treated by regulation 5 as an application to amend an authorisation to declare goods for an outward processing procedure.
(a)the declaration is made using—
(i)the simplified Customs declaration process within the meaning given in regulation 30(1) of the import duty regulations; or
(ii)the EIDR procedure within the meaning given in regulation 36(1) of the import duty regulations;
(b)the declaration relates to a case—
(i)where the requirements in relation to the relevant non-transit Part 1 procedure are intended to be met by reference to equivalent goods;
(ii)in relation to which an examination of the available evidence is required for the purposes of regulation 20(1)(a); or
(iii)to which regulation 27 applies;
(c)if the goods were declared for the free-circulation procedure—
(i)the goods would be subject to an additional amount of import duty under section 13, 14 or 15 of the Act; or
(ii)the importer of the goods would be required to give a guarantee under paragraph 15(5) of Schedule 4 to the Act;
(d)the declaration is made by a Customs agent as an indirect agent(21); or
(e)the declaration is for a non-transit Part 1 procedure other than a temporary admission procedure and—
(i)the person in whose name the declaration is made is not established in the United Kingdom;
(ii)that person has made three previous declarations of goods for the same procedure that have, in the period of 12 months ending immediately before the date the declaration is made, been treated as applications for authorisation, or applications for amendment of an authorisation, under regulation 4 or 5 or under the UCC; or
(iii)the value of the goods included in that declaration exceeds £500,000.
Determination of a declaration treated as an application for authorisation
8.—(1) Where a declaration is to be treated by regulation 4 as an application for authorisation or by regulation 5 as an application for amendment of an authorisation, the application is to be determined in accordance with this regulation and regulations 87 to 91 of the import duty regulations do not apply.
(2) Where the eligibility criteria set out in regulation 9 are met, acceptance of the declaration(22) is to be treated as grant of authorisation.
(3) An authorisation treated by paragraph (2) as granted only authorises—
(a)in the case of a declaration treated by regulation 4 as an application for authorisation, the making of that declaration; or
(b)in the case of a declaration treated by regulation 5 as an application for amendment of an authorisation, the use of the standard exchange system in relation to the import of the goods declared for the free-circulation procedure in that declaration.
(4) HMRC must publish a notice setting out any matters that apply to an authorisation treated by paragraph (2) as granted that would have been included in an approval notification by virtue of these Regulations if the application for authorisation had been granted under regulation 89 of the import duty regulations and may make different provision for different cases.
(5) If the declaration is not accepted the application is to be treated as refused.
Eligibility for authorisation or approval
9.—(1) The following criteria (“the eligibility criteria”) must be met before an authorisation or approval is granted to carry out an activity specified in regulation 3(2)—
(a)the applicant must be established in the United Kingdom, except where—
(i)the application is for authorisation to declare goods for a temporary admission procedure; or
(ii)paragraph (2) applies;
(b)where a liability to import duty may be incurred for goods declared for a relevant non-transit Part 1 procedure, the applicant must give a guarantee in accordance with Part 10 of the import duty regulations unless there is no requirement for any person to give a guarantee by virtue of regulation 101 of those Regulations;
(c)an HMRC officer must be of the opinion that it is possible to exercise control of any goods declared under the authorisation sought without the effects being disproportionate to the benefit to the applicant of use of the procedure; and
(d)an HMRC officer must be satisfied that the applicant will exercise proper conduct of the operations necessary to comply with the requirements of the procedure.
(a)the application is for authorisation to declare goods for an inward processing procedure or an authorised use procedure; and
(b)in the opinion of an HMRC officer it is appropriate to grant authorisation to a person established outside the United Kingdom taking into consideration factors specified in a notice published by HMRC.
(3) A notice published under paragraph (2)(b) may make different provision for different cases.
(4) For the purposes of considering whether the applicant will exercise proper conduct of operations necessary to comply with the requirements of the relevant non-transit Part 1 procedure, the matters that an HMRC officer may take into account include (for example)—
(a)whether, in the opinion of an HMRC officer, the applicant’s financial standing makes the applicant suitable to carry out the activity for which authorisation is sought;
(b)whether the applicant, or any directors or senior employees of the applicant, has 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 applicant to carry out the activity for which authorisation is sought;
(c)whether the applicant, or any directors or senior employees of the applicant, has any criminal conviction which in the opinion of the HMRC officer is—
(i)serious having regard to the type of conviction; and
(d)whether the applicant maintains a logistical system and records that identify sufficiently the movement of, and transactions in, chargeable goods and domestic goods and facilitate compliance with Customs obligations;
(i)the applicant meets any professional standards of competence specified in a notice published by HMRC under regulation 93(2) of the import duty regulations; or
(ii)in the opinion of an HMRC officer, the applicant’s practical experience makes the applicant suitable to carry out the activity for which authorisation is sought.
(5) An authorised economic operator within the meaning given in section 22(2) of the Act is deemed to satisfy the requirement specified in paragraph (1)(d) unless, in the opinion of an HMRC officer, consideration is required of matters relating to the exercise of proper conduct of operations that were not considered at the time when the applicant was authorised as an authorised economic operator.
Period for which an authorisation is to have effect
10.—(1) Subject to paragraph (2), the period for which an authorisation to carry out an activity specified in regulation 3(2)(b) is to have effect must not be longer than—
(a)in the case of activities relating to sensitive goods, three years beginning with the date from which the authorisation is to have effect; or
(b)in all other cases, five years beginning with the date from which the authorisation is to have effect.
(2) In the case of authorisation to declare goods for a temporary admission procedure, the period for which an authorisation is to have effect may be longer than the period specified in paragraph (1)(a) or (b) where—
(a)the applicant provides evidence that the proposed use of the goods in the UK while subject to the temporary admission procedure requires the authorisation to have effect for a longer period; and
(b)in the opinion of an HMRC officer a longer period is justified.
11.—(1) An approval notification issued in relation to an authorisation to carry out an activity specified in regulation 3(2)(b) may provide that the authorisation has effect from a time before the application for it is made (“retrospective authorisation”) in accordance with this regulation.
(2) Paragraph (1) applies even where the goods for which authorisation to make a declaration is sought are not available for examination by an HMRC officer at the time at which the application for authorisation is received by HMRC.
(3) HMRC may grant retrospective authorisation only if—
(a)an HMRC officer is satisfied that—
(i)the applicant has an economic need for retrospective authorisation to be granted;
(ii)the application for retrospective authorisation is not an attempt to avoid—
(aa)any or all liability to import duty or other charges; or
(bb)any non-tariff trade policy measures or agricultural policy measures,
that would have applied had the application been made before the time from which the authorisation is to have effect;
(iii)all the requirements in relation to the procedure imposed by or under Schedule 2 to the Act have been met from the date on which the authorisation is to have effect;
(aa)the goods can be identified in the applicant’s accounts and records from the date on which the authorisation is to have effect; or
(bb)such identification is not required for the purposes of demonstrating compliance with obligations imposed by or under Part 1 of the Act;
(v)the applicant’s accounts and records identify sufficiently the movement of, and transactions in, chargeable and domestic goods so as to enable the applicant to comply with the obligations imposed by or under Part 1 of the Act in relation to the procedure for which retrospective authorisation is sought; and
(vi)the applicant and HMRC are able to take all steps required to ensure that records and other documentation reflect any grant of retrospective authorisation including, where necessary, the withdrawal or amendment of customs declarations;
(b)in the period of three years ending immediately before the date that HMRC received the application—
(i)no previous retrospective authorisation was granted to the applicant to declare goods for the same relevant non-transit Part 1 procedure as that in relation to which the application seeks retrospective authorisation; and
(ii)no authorisation was granted to the applicant under Article 211(2) of the UCC to declare goods for a procedure which corresponds to that in relation to which the application seeks retrospective authorisation;
(c)the case is one in relation to which an examination of the available evidence is not required for the purposes of regulation 20(1)(a) and regulation 27 does not apply; and
(d)where the application is for renewal of authorisation in relation to the same kind of goods and operation, the application was submitted within three years of the expiry of the authorisation for which renewal is sought.
(4) Subject to paragraphs (5) to (7), the approval notification may provide that the authorisation has effect from a date within the period of a year before the date on which the application for authorisation is received by HMRC where, in the opinion of an HMRC officer, there are exceptional circumstances justifying that earlier date.
(5) Where the application is for renewal of an authorisation for the same kind of goods and operation, the approval notification must not provide that the authorisation has effect from a date earlier than the date on which the authorisation of which renewal is sought expired.
(6) Where the application for authorisation relates to sensitive goods, the approval notification must not provide that the authorisation has effect from a date earlier than three months before the date on which the application was received by HMRC.
(7) In all cases, the approval notification must not provide that the authorisation has effect from a date earlier than exit day.
PART 3Declarations
Declaration to be made in the name of the authorised person
12.—(1) Where paragraph (2) applies, a Customs agent may not make a declaration of goods for—
(a)an inward processing procedure, an outward processing procedure, an authorised use procedure or a temporary admission procedure; or
(b)a storage procedure where the goods are to be kept in a private customs warehouse.
(a)the principal of the agent is authorised to declare goods for the relevant procedure;
(b)the agent is not so authorised; and
(c)the agent intends to act as an indirect agent on behalf of the principal.
Declarations for an outward processing procedure
13.—(1) The paragraphs of Schedule 1 to the Act specified in paragraph (2) apply to declarations of goods for an outward processing procedure as they apply to a Customs declaration, but—
(a)as if any reference to “Customs declaration” were a reference to a declaration of goods for an outward processing procedure; and
(b)with the modifications specified in paragraph (2).
(2) The specified paragraphs and modifications are—
(a)paragraph 4 (form);
(b)paragraph 7 (contents), as if, in sub-paragraph (1)(a), “, in addition to specifying the Customs procedure for which the goods are declared,” were omitted;
(c)paragraphs 10 to 12 (acceptance), as if—
(i)in paragraphs 10(a) and 11(1)(b), for “paragraphs 1 to 6” there were substituted “paragraph 4”; and
(ii)paragraph 11(1)(a) were omitted;
(d)paragraphs 13 and 14 (verification);
(e)paragraphs 15 and 16 (amendment and withdrawal); and
(f)paragraph 19 (notifications).
(3) Section 2 of Chapter 3 of Part 4 of the import duty regulations (simplified Customs declarations using the EIDR procedure) applies to declarations of goods for an outward processing procedure as they apply to a Customs declaration, but as if any reference to a “Customs declaration” or to a “simplified Customs declaration” were a reference to a declaration of goods for an outward processing procedure.
(4) For the purposes of these Regulations, goods declared for an outward processing procedure are released to the procedure—
(a)at the time at which HMRC accept the declaration; or
(b)if later, at the time from which a person is authorised to use the procedure.
17.—(1) No person may remove from a customs warehouse goods declared for a storage procedure which have not been discharged(23) from the storage procedure (“declared goods”) unless—
(c)equivalent domestic goods(24) are to be subject to the specified processing in place of the intended imported goods; and
(i)the export is to a country or territory with whose government Her Majesty’s government in the United Kingdom has made arrangements which 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(25) in its standard form, within the meaning given in section 9(2) of the Act; and
26.—(1) Where an inward processing procedure in the supplementary form has effect in relation to any goods and paragraph (2) applies, the goods may be exported, in accordance with the applicable export provisions(26), for a temporary period without discharging the procedure.
(ii)insofar as it is retained EU law under the European Union (Withdrawal) Act 2018(27)—
(2) In this regulation “the authorised use document” means the document entitled “Authorised use: Eligible goods and authorised uses” published on 27 November 2018(28).
PART 5General Rules
42.—(1) Where paragraph (2) applies, a person to whom rights and obligations in relation to goods declared for a relevant non-transit Part 1 procedure are transferred (“the transferee”) is subject to such requirements of the procedure as are specified in accordance with paragraph (7).
(a)HMRC grant—
(i)an application for authorisation or approval to carry out an activity specified in regulation 3(2) that includes an approval to transfer to the transferee some or all of the rights and obligations that relate to relevant declared goods; or
(ii)one of the applications specified in paragraph (3)(a) and one of the applications specified in paragraph (3)(b); and
(b)an agreement is made for a transfer of rights and obligations to take place.
(3) The specified applications are—
(i)made by an approved person, an authorised person or a holder of procedure for approval to transfer to the transferee some or all of the rights and obligations that relate to relevant declared goods; or
(ii)made by an approved person under regulation 91(2)(a) of the import duty regulations to amend an authorisation or approval to carry out an activity specified in regulation 3(2) in order to approve such a transfer; and
(b)an application made by a person—
(i)for approval to receive some or all of the rights and obligations that relate to relevant declared goods; or
(ii)under regulation 91(2)(a) of the import duty regulations to amend that person’s authorisation or approval to carry out an activity specified in regulation 3(2) in order to approve the person to receive such rights and obligations.
(4) For the purposes of Part 9 of the import duty regulations, the transfer of rights and obligations that relate to relevant declared goods is to be treated as a matter requiring approval under those Regulations.
(5) HMRC may only grant an application referred to in paragraphs (2)(a)(i) and (3) where—
(a)in the case of goods declared for an inward processing procedure, an outward processing procedure, an authorised use procedure or a temporary admission procedure the transferee meets the eligibility criteria for authorisation to declare goods for procedure to which the rights and obligations specified in the application relate;
(b)in the case of goods declared for a storage procedure to be kept in a customs warehouse, the transferee is established in the United Kingdom.
(6) HMRC may grant an application referred to in paragraph (3) subject to conditions.
(7) An approval notification issued in relation to an application referred to in paragraph (2)(a)(i) or (3) must specify the rights and obligations to be transferred.
(8) Where the transferee breaches—
(a)a requirement imposed by or under Part 1 of the Act on the transferee as holder of the procedure; or
(b)an obligation transferred by virtue of this regulation,
the transferee is liable to any import duty arising as a result of that breach.
“obligations”, in relation to relevant declared goods, includes—
conditions to which an authorisation to declare the relevant declared goods for the relevant non-transit Part 1 procedure is subject; and
any other requirements in relation to the procedure imposed by or under Part 1 of the Act;
“relevant declared goods” means goods declared for a relevant non-transit Part 1 procedure;
“rights”, in relation to relevant declared goods, includes—
any permissions contained in an authorisation to declare the relevant declared goods for the relevant non-transit Part 1 procedure; and
any rights in relation to those goods conferred by or under Part 1 of the Act.
Discharge of a special Customs procedure – supplementary provision
43.—(1) An approval notification in relation to an authorisation to declare goods for an inward processing procedure or an authorised use procedure may specify that it is a requirement that the authorised person supplies to HMRC—
(a)such information in relation to the discharge of the procedure as may be specified in the approval notification; and
(b)in such manner and at such time as may be so specified.
(2) The evidence which is to be required, or is to be sufficient, for the purposes of showing that a relevant non-transit Part 1 procedure has been discharged, is to be determined by an HMRC officer in accordance with a notice published by HMRC.
(3) Where goods released to a relevant non-transit Part 1 procedure are placed together with other goods and are destroyed, the goods destroyed, for the purposes of showing the procedure has been discharged under paragraph 19(3)(b) of Schedule 2 to the Act, are—
(a)where an HMRC officer is satisfied that the holder of the procedure has provided sufficient evidence as to the goods which were subject to the procedure that have been destroyed, those goods; or
(b)where an HMRC officer is not so satisfied, such proportion of the goods placed together as is determined in accordance with a notice published by HMRC.
(a)two or more declarations of goods of the same type are made for a relevant non-transit Part 1 procedure using a single authorisation; and
(b)some of those goods—
(i)are exported from the United Kingdom in accordance with the applicable export provisions;
(ii)are destroyed;
(iii)are declared for another Customs procedure; or
(iv)are, in the case of goods declared for an authorised use procedure, subject to an authorised use.
(5) Where this paragraph applies, for the purposes of showing that a relevant non-transit Part 1 procedure has been discharged—
(a)the event described in paragraph (4)(b) must have taken place in relation to the actual goods declared for the procedure where—
(i)an HMRC officer consents to a request from the approved person, the authorised person or the holder of the procedure that this should be the case; or
(ii)an HMRC officer is of the opinion that the amount of import duty which would be applicable to the goods would, as a result of treatment in accordance with sub-paragraph (b), be lower than the amount applicable to them if the event described in paragraph (4)(b) had taken place in relation to the actual goods declared; or
(b)in all other cases, the goods referred to in paragraph (4)(b) are to be treated as having been declared under the earliest of the declarations referred to in paragraph (4)(a).
(6) A notice published under this regulation may make different provision for different cases.
44.—(1) The persons specified in paragraph (2) must keep and preserve such records in respect of goods that are subject to a relevant non-transit Part 1 procedure, and in such form, as specified in a notice made by HMRC.
(a)any person authorised to carry out an activity specified in regulation 3(2);
(b)any holder of a procedure; and
(c)any person handling, storing, producing, or manufacturing, or applying a process to, goods released to a relevant non-transit Part 1 procedure.
(3) HMRC must publish a notice specifying—
(a)the records to be kept and preserved under paragraph (1);
(b)the form in which they are to be kept; and
(c)the period for which they must be kept and preserved.
(4) A notice published under paragraph (3)—
(i)specify that the records must be updated within a specified period after the occurrence of a specified event; and
(ii)make different provision for different cases; and
(b)must make different provision for authorised economic operators.
Authorisation to use equivalent goods
45.—(1) Subject to paragraph (2), an approval or authorisation to carry out an activity specified in regulation 3(2) (“a relevant non-transit Part 1 procedure authorisation”) may authorise requirements in relation to the relevant procedure to be met by reference to equivalent goods (“an equivalent goods authorisation”).
(2) An equivalent goods authorisation must not be granted—
(a)subject to paragraph (3), where, in the opinion of an HMRC officer control by any HMRC officer of the goods to be declared for the relevant non-transit Part 1 procedure could not be satisfactorily exercised if an equivalent goods authorisation were granted;
(b)in relation to a declaration of goods for a temporary admission procedure unless—
(i)the goods fall within the description given in any of the following sections of the temporary admission document—
(aa)section 1 (pallets);
(bb)section 2 (spare parts, accessories and equipment for pallets);
(cc)section 3 (containers);
(dd)section 4 (spare parts, accessories and equipment for containers); and
(ii)full relief is to be given in respect of those goods under regulation 40;
(c)in relation to a declaration of goods for an inward processing procedure where the goods are only to be subject to an operation of a type that is—
(ii)specified in a notice published by HMRC as an operation constituting a usual form of handling;
(d)in relation to a declaration of goods for an inward processing procedure where the export of the processed goods that would result from the processing under the procedure would constitute a breach of the requirement at regulation 22(3)(c);
(e)in relation to a declaration of goods for a storage procedure to be kept in a storage warehouse, an inward processing procedure, a temporary admission procedure or an authorised use procedure where, if the goods were declared for the free-circulation procedure—
(i)they would be subject to an additional amount of import duty by virtue of section 13, 14 or 15 of the Act; or
(f)in relation to a declaration of goods for an outward processing procedure where, if the equivalent chargeable goods were declared for the free-circulation procedure—
(i)the equivalent chargeable goods would be subject to an additional amount of import duty by virtue of section 13, 14 or 15 of the Act; or
(ii)the importer of the equivalent chargeable goods would be required to give a guarantee under paragraph 15(5) of Schedule 4 to the Act;
(g)in relation to a declaration of goods for a storage procedure to be kept in a customs warehouse where the goods are sensitive goods; or
(h)in relation to a declaration of goods for a relevant non-transit Part 1 procedure where the goods or the equivalent goods have been genetically modified or contain elements that have undergone genetic modification.
(3) Paragraph (2)(a) does not apply where the applicant for authorisation is an authorised economic operator within the meaning given in section 22(2) of the Act unless, in the opinion of an HMRC officer, consideration is required of matters relating to the use of equivalent goods that were not considered at the time when the applicant was authorised as an authorised economic operator.
(4) A relevant non-transit Part 1 procedure authorisation may authorise equivalent goods to be stored together with other goods where—
(a)the equivalent goods can be identified by such method as HMRC may specify in the approval notification; or
(b)where it is not possible to identify the equivalent goods without incurring disproportionate cost, the approval notification specifies that it is a requirement of the procedure that the authorised person carries out accounting segregation in accordance with a notice made under regulation 44 (record keeping).
(5) It is a condition of an equivalent goods authorisation in relation to the declaration of goods for an inward processing procedure, an outward processing procedure or a storage procedure to be kept in a customs warehouse that—
(a)goods which are organic must not be replaced by goods which are not organic; and
(b)goods which are not organic must not be replaced by goods which are organic.
(6) An equivalent goods authorisation in relation to the declaration of goods for an inward processing procedure is subject to any conditions set out in a notice published by HMRC concerning—
(a)rice;
(b)wheat;
(c)sugar;
(d)live animals and meat;
(e)maize;
(f)olive oil; and
(g)milk and milk products.
(7) A notice published under paragraph (6) may make different provision for different cases.
(8) In this regulation “organic” has the meaning given in Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of organic products.
46.—(1) For the purposes of paragraph 23 of Schedule 2 to the Act—
(a)in relation to a declaration of goods for an inward processing procedure the following are to be regarded as equivalent domestic goods —
(i)goods at a more advanced stage of manufacture than the imported goods;
(ii)where the processing consists of repair—
(aa)new goods where the imported goods are used goods; and
(bb)goods that are newer goods, or goods in less need of repair, than the imported goods; and
(iii)goods with—
(aa)technical characteristics the same as, or similar to, those of the imported goods; and
(bb)the same classification code and the same commercial quality as the imported goods;
(b)in all other cases, goods are not to be regarded as equivalent domestic goods unless the goods have the same—
(i)classification code;
(ii)commercial quality; and
as the imported goods.
(2) In relation to a declaration of goods for an outward processing procedure the goods are not to be regarded as equivalent chargeable goods for the purposes of these Regulations unless—
(a)they have the same—
as the goods they are replacing; and
(b)the goods which are being replaced are not sensitive goods.
(3) For the purposes of paragraphs (1) and (2), goods have the same commercial quality as the imported goods or the goods they are replacing if a reasonable purchaser would consider the equivalent goods to be of the same standard as the imported goods or the goods they are replacing.
(4) In this regulation “imported goods” means goods to be declared for a relevant non-transit Part 1 procedure.
Treatment of equivalent goods
47.—(1) Paragraph (2) applies where—
(a)there is a declaration of goods—
(i)for a storage procedure to be kept in a customs warehouse; or
(ii)for an inward processing procedure; and
(b)the requirements in relation to the relevant procedure are to be met by reference to equivalent domestic goods in accordance with these Regulations.
(a)the goods are to be treated for the purposes of Part 1 of the Act as if they had been simultaneously released to, and discharged from, the procedure, on the date on which the declaration of the goods for the procedure is accepted by HMRC; and
(b)the equivalent domestic goods—
(i)are not to be regarded as domestic goods from the date on which the declaration of the goods for the relevant procedure is accepted by HMRC (“the date of acceptance”); and
(ii)are to be treated for the purposes of Part 1 of the Act as imported into the United Kingdom on the date of acceptance.
(3) For the purposes of section 34(1)(b) of the Act, a notification of importation is to be treated as having been given in relation to the equivalent goods not to be regarded as domestic goods under paragraph (2)(b)(i) on the date of acceptance.
(i)for an authorised use procedure; or
(ii)for a temporary admission procedure; and
(b)the requirements in relation to the procedure are to be met by reference to equivalent domestic goods in accordance with these Regulations.
(5) Where this paragraph applies, the goods are to be treated for the purposes of Part 1 of the Act as if they had been simultaneously released to, and discharged from, the relevant procedure where—
(a)the declaration of the goods for the procedure is accepted by HMRC; and
(b)the requirements in relation to the procedure were met by reference to the equivalent domestic goods.
(6) Where paragraph (5) applies, the goods are to be treated as if they had been discharged from the procedure on the date on which the equivalent domestic goods are exported from the United Kingdom where—
(a)the declaration of the goods for the procedure is accepted by HMRC;
(b)the requirements in relation to the procedure were not met by reference to the equivalent domestic goods at the time of the declaration of the goods;
(c)the procedure has not been discharged in accordance with paragraph 18 or 19 of Schedule 2 to the Act; and
(d)the equivalent domestic goods are exported from the United Kingdom.
48. Where an animal that is not to be regarded as a domestic good for the purposes of Part 1 of the Act is treated by regulation 104 of the import duty regulations as being imported into the United Kingdom on a particular date, the animal is to be treated for the purposes of that Part as being released on that date to the Customs procedure to which the animal’s mother has been released.
These Regulations make provision under Part 1 of the Taxation (Cross-border) Trade Act 2018 (“the Act”) in relation to outward processing and special Customs procedures, other than transit. These procedures are defined in sections 3 and 36 of the Act. These Regulations replace provisions in European Union legislation which will cease to have effect when the United Kingdom ceases to be a member of the European Union.
These Regulations are made alongside the Customs (Import Duty) (EU Exit) Regulations 2018 (S.I. 2018/1248) which make further provision under Part 1 of the Act relating to import duty. Further instruments relevant to outward processing and special Customs procedures will be made in due course covering matters such as applicable export provisions and the customs tariff.
Part 1 makes provision in relation to citation, commencement and interpretation.
Part 2 makes provision in relation to authorisation and approvals. In particular, this Part:
specifies the activities relating to outward processing and non-transit special Customs procedures that may only be carried out by a person who is authorised or approved to do so;
makes provision for declarations of goods to be treated as an application for authorisation or amendment of an approval;
specifies eligibility criteria for authorisation or approval that apply to more than one procedure;
makes provision in relation to the period for which an authorisation is to have effect and the circumstances in which an authorisation may have effect from a time before the application for it is made.
Regulation 11 provides for circumstances in which an authorisation may have effect from a time before the application for it is made. This retrospective effect is authorised by paragraph 1(2)(i) of Schedule 2 to the Act.
Part 3 makes provision in relation to declarations for outward processing and non-transit special Customs procedures.
Part 4 sets out the rules that apply to each procedure in relation to eligibility, conditions of approval or authorisation and requirements of the procedure and other matters relating to the operation of the procedure.
Part 5 sets out other general rules relating to outward processing and non-transit special Customs procedures, including the circumstances in which rights and obligations in relation to the procedures may be transferred and the use of equivalent goods.
Copies of the documents referred to in this instrument are available at https://www.gov.uk/government/collections/customs-vat-and-excise-regulations-leaving-the-eu-with-no-deal and hard copies are available for inspection, free of charge, at the offices of HMRC at 100 Parliament Street, London, SW1A 2BQ.
This instrument is one of a group of instruments covered by a single overarching HMRC impact assessment which will be published on 4 December 2018 and will be available on the website at https://www.gov.uk/government/collections/customs-vat-and-excise-regulations-leaving-the-eu-with-no-deal.
The document entitled “Sensitive Goods” is available at https://www.gov.uk/government/collections/customs-vat-and-excise-regulations-leaving-the-eu-with-no-deal and a hard copy is available for inspection, free of charge, at the offices of HMRC at 100 Parliament Street, London, SW1A 2BQ.
“CEMA 1979” is defined in section 37(1) of the Act as the Customs and Excise Management Act 1979 (c. 2).
The meaning of “goods declared for a storage procedure” is given in paragraph 2 of Schedule 2 to the Act.
“Chargeable goods” is defined in section 2 of the Act.
“Domestic goods” is defined in section 33 of the Act.
The meaning of a declaration of goods for “an outward processing procedure” is given in section 36(2) of the Act.
The meaning of “Customs procedure” is given in section 3(3) of the Act.
The meaning of “a transit procedure” is given in paragraph 5 of Schedule 2 to the Act.
The meaning of “special Customs procedure” is given in section 3(4) of the Act.
The document entitled “Temporary Admission: Eligible Goods and Conditions for Relief” is available at https://www.gov.uk/government/collections/customs-vat-and-excise-regulations-leaving-the-eu-with-no-deal and a hard copy is available for inspection, free of charge, at the offices of HMRC at 100 Parliament Street, London, SW1A 2BQ.
The meaning of declaring goods for an inward processing procedure is given in paragraphs 8, 9 and 11 of Schedule 2 to the Act.
The meaning of declaring goods for an outward processing procedure is given in section 36(2) of the Act.
The meaning of declaring goods for an authorised use procedure is given in paragraph 13 of Schedule 2 to the Act.
The meaning of declaring goods for a temporary admission procedure is given in paragraph 15 of Schedule 2 to the Act.
“The free-circulation procedure” is defined in section 3 of the Act.
“HMRC officer” is defined in section 37(1) of the Act.
For the meaning of Customs agents and indirect agents, see section 21 of the Act.
See paragraphs 10 to 12 of Schedule 1 to the Act on acceptance of Customs declarations, which are applied to declarations of goods for an outward processing procedure by regulation 13(1) and (2)(c).