Exiting The European Union PART 1 Introductory provision Citation, commencement and effect 1 1 These Regulations may be cited as the Tobacco Products (Traceability System and Security Features) (Amendments) (EU Exit) Regulations 2020. 2 These Regulations come into force on IP completion day and have effect in accordance with regulations 3(3), 4(1), 7(3), 8, 9, 10(3) to (5) and 11. Interpretation 2 In these Regulations— “2019 Regulations” means the Tobacco Products (Traceability and Security Features) Regulations 2019 ; “applied Commission Implementing Regulation” has the meaning given in regulation 3(2); “EU Commission Implementing Regulation” means the Commission Implementing Regulation (EU) 2018/574 of 15 December 2017 on technical standards for the establishment and operation of a traceability system for tobacco products ; “member State” does not include the United Kingdom; “supplied in any part of the United Kingdom” has the meaning given in regulation 3 of the 2019 Regulations as amended by paragraph 5 of Schedule 3; “supplied in Great Britain” is to be construed in accordance with the meaning of “supplied in any part of the United Kingdom”; “supplied in a member State” has the meaning given in regulation 5; “cigarette”, “hand-rolling tobacco” and “tobacco product” have the meanings given to them in regulation 2 of the 2019 Regulations. PART 2 Application and amendment of direct EU legislation Application and amendment of retained EU legislation relating to the traceability system 3 1 Commission Implementing Regulation (EU) 2018/574 of 15 December 2017 on technical standards for the establishment and operation of a traceability system for tobacco products applies in the United Kingdom and is amended in accordance with Schedule 1. 2 That Regulation as amended by Schedule 1 (“the applied Commission Implementing Regulation”) applies for the purposes of establishing and operating a traceability system for tobacco products in the United Kingdom. 3 Subject to regulation 4, the applied Commission Implementing Regulation has effect— a in relation to cigarettes and hand-rolling tobacco— i manufactured in the United Kingdom on or after IP completion day, or ii imported into the United Kingdom on or after that day for supply in any part of the United Kingdom, and b in relation to tobacco products (other than cigarettes and hand-rolling tobacco)— i manufactured in the United Kingdom on or after 20th May 2024, or ii imported into the United Kingdom on or after that date for supply in any part of the United Kingdom. Transitional provision: products manufactured and marked before IP completion day 4 1 Chapter 6 of the applied Commission Implementing Regulation has effect in relation to cigarettes and hand-rolling tobacco— a manufactured in the United Kingdom before IP completion day, or b i manufactured outside the United Kingdom before IP completion day, and ii imported into the United Kingdom on or after that day for supply in any part of the United Kingdom or supply in a member State, where a unit packet of those products is marked with a unique identifier issued by the UK ID Issuer before that day. 2 For the purposes of paragraph (1), where an obligation in Chapter 6 of the applied Commission Implementing Regulation cannot be complied with unless a requirement listed in paragraph (3) is first met, the requirement is treated as being met where the same requirement was met before IP completion day in relation to those products for the purposes of the EU Commission Implementing Regulation. 3 The provisions are— a Article 6 (marking by means of unit level UIs), b Article 8(3) (time stamp of manufacture), c Article 9 (request and issuing of unit level UIs), d Article 10 (marking by means of aggregated level UIs), e Article 11(3) (time stamp of aggregation), f Article 13 (request and issuing of aggregated level UIs generated by ID issuers), g Article 21 (data carriers for unique identifiers). 4 In this regulation, “unique identifier”, “unit packet” and “the UK ID Issuer” have the meanings given to them in regulation 2 of the 2019 Regulations, as that regulation had effect immediately before IP completion day. Transitional provision: meaning of tobacco products supplied in a member State 5 1 For the purposes of regulation 4, tobacco products are supplied in a member State if, in the course of a business, a person— a supplies the product— i for consumption in a member State or through the travel retail sector of a member State, ii with a view to it being supplied for consumption in a member State or through the travel retail sector of a member State, b offers or agrees to supply it in those circumstances, or c exposes or possesses it for supply in those circumstances, and “supply in a member State” is to be construed accordingly. 2 In the case of a cross-border distance sale of a product to a consumer located in a member State, the product is to be treated for the purposes of these Regulations as supplied in a member State. 3 In this regulation— “cross-border distance sale” means a distance sale to a consumer (“C”) where, at the time C orders a product from a retailer, C is located in a member State, and the retailer is established in a different member State or in a country other than a member State, and, for these purposes, a retailer is deemed to be established in a member State— in the case of a retailer who is a natural person, if that person’s place of business is in that member State, and in any other case, if the retailer has its statutory seat, central administration or place of business, including a branch, agency or any other establishment, in that member State; “travel retail sector of a member State” means retail outlets in a member State at which tobacco products may be purchased only by people travelling on journeys to destinations outside of that member State. Saving of identifier codes and registry of codes 6 1 A requirement set out in any of the provisions of the applied Commission Implementing Regulation listed in paragraph (2) in relation to an identifier code for— a an economic operator, b a facility, or c a machine, is treated as met in cases where, for the purposes of the same provisions of the EU Commission Implementing Regulation the requirement was met before IP completion day in relation to that economic operator, facility or machine, as the case may be. 2 The provisions are— a Article 14(1) (request for an economic operator identifier code), b Article 15(3) (registration of economic operator identifier codes), c Article 16(1) (request for a facility identifier code), d Article 17(3) (registration of facility identifier codes), e Article 18(1) (request for a machine identifier code), f Article 19(3) (registration of machine identifier codes). 3 In this regulation, “economic operator”, “facility” and “machine” have the meanings given to them in Article 2 of the applied Commission Implementing Regulation. Amendment of retained EU legislation relating to security features 7 1 Commission Implementing Decision (EU) 2018/576 of 15 December 2017 on technical standards for security features applied to tobacco products is amended in accordance with Schedule 2. 2 That Decision as amended by Schedule 2 (“the GB Security Features Decision”) applies for the purpose of setting technical standards for applying security features to tobacco products supplied in Great Britain. 3 The GB Security Features Decision has effect in relation to— a cigarettes and hand-rolling tobacco supplied in Great Britain on or after IP completion day, and b tobacco products (other than cigarettes and hand-rolling tobacco) supplied in Great Britain on or after 20th May 2024. PART 3 Saving and amendment of subordinate legislation Saving of the Tobacco Products (Traceability and Security Features) Regulations 2019: the Protocol on Ireland/Northern Ireland 8 Subject to regulation 9, the 2019 Regulations as they had effect immediately before IP completion day— a continue to have effect in relation to Northern Ireland for the purposes of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement, and b apply for those purposes as if— i references to “the United Kingdom” were to “Northern Ireland”, ii references to “another member State” were to “a member State”, iii references to “the territory of the European Union” were to “Northern Ireland or the territory of the European Union”, iv the definitions of “cross-border distance sale” and “travel retail sector” were treated as omitted, v regulations 3 (meaning of tobacco product supplied in the United Kingdom) and 4 (meaning of tobacco product supplied in another member State) were treated as substituted for— Meaning of tobacco products supplied in Northern Ireland 3 1 For the purposes of these Regulations, tobacco products are supplied in Northern Ireland if, in the course of a business, a person— a supplies the product— i for consumption in Northern Ireland or through the travel retail sector, or ii with a view to it being supplied for consumption in Northern Ireland or through the travel retail sector, b offers or agrees to supply it in those circumstances, or c exposes or possesses it for supply in those circumstances, and “supply in Northern Ireland” is to be construed accordingly. 2 In the case of a cross-border distance sale of a product to a consumer located in Northern Ireland, the product is to be treated for the purposes of these Regulations as supplied in Northern Ireland. 3 In this regulation— “cross-border distance sale” means a distance sale to a consumer (“C”) where, at the time C orders a product from a retailer, C is located in Northern Ireland and the retailer is established in a member State or another country outside of Northern Ireland, and, for these purposes, a retailer is deemed to be established in a member State— in the case of a retailer who is a natural person, if that person’s place of business is in that member State, and in any other case, if the retailer has its statutory seat, central administration or place of business, including a branch, agency or any other establishment, in that member State; “travel retail sector” means retail outlets in Northern Ireland at which tobacco products may be purchased only by people travelling on journeys to destinations outside Northern Ireland. Meaning of tobacco products supplied in a member State 4 1 For the purposes of these Regulations, tobacco products are supplied in a member State if, in the course of a business, a person— a supplies the product— i for consumption in a member State or through the travel retail sector of a member State, ii with a view to it being supplied for consumption in a member State or through the travel retail sector of a member State, b offers or agrees to supply it in those circumstances, or c exposes or possesses it for supply in those circumstances, and “supply in a member State” is to be construed accordingly. 2 In the case of a cross-border distance sale of a product to a consumer located in a member State, the product is to be treated for the purposes of these Regulations as supplied in a member State. 3 In this regulation— “cross-border distance sale” means a distance sale to a consumer (“C”) where, at the time C orders a product from a retailer, C is located in a member State, and the retailer is established in Northern Ireland, in a different member State or in a country other than a member State, and, for these purposes, a retailer is deemed to be established in a member State— in the case of a retailer who is a natural person, if that person’s place of business is in that member State, and in any other case, if the retailer has its statutory seat, central administration or place of business, including a branch, agency or any other establishment, in that member State; “travel retail sector of a member State” means retail outlets in a member State at which tobacco products may be purchased only by people travelling on journeys to destinations outside of that member State. , vi regulation 6(4) (security feature requirement) were treated as omitted. Exception to regulation 8 9 Regulation 8 does not apply in relation to the following Parts of the 2019 Regulations— a Part 4 (security feature system), and b Part 5 (independence of service providers) but only to the extent that that Part makes provision relating to authentication elements providers. Amendments to the Tobacco Products (Traceability and Security Features) Regulations 2019 10 1 The 2019 Regulations are amended in accordance with Schedule 3. 2 The 2019 Regulations as amended by Schedule 3 apply for the purposes of— a establishing and operating a traceability system for tobacco products in the United Kingdom, and b applying security features to tobacco products supplied in any part of the United Kingdom. 3 Subject to regulation 11, the amendments made by paragraph 7 of Schedule 3 have effect in relation to cigarettes and hand-rolling tobacco supplied in any part of the United Kingdom on or after IP completion day. 4 The amendment made by paragraph 8 of Schedule 3 has effect in relation to cigarettes and hand-rolling tobacco— a manufactured in the United Kingdom on or after IP completion day, or b imported into the United Kingdom on or after that day for supply in any part of the United Kingdom. 5 The amendments made by paragraph 11 of Schedule 3 have effect in relation to cigarettes and hand-rolling tobacco— a manufactured in the United Kingdom on or after IP completion day, or b imported into the United Kingdom on or after that day, for supply in any part of the United Kingdom. Transitional provision: products marked before IP completion day 11 In cases where regulation 4 applies, unit packets of cigarettes and hand-rolling tobacco that were marked in compliance with the EU Commission Implementing Regulation before IP completion day and are supplied in any part of the United Kingdom on or after that day, will be treated, for the purposes of regulation 6(2)(a) of the 2019 Regulations, as meeting the marking requirements of the applied Commission Implementing Regulation referred to in that regulation. Saving of authentication elements notice 12 1 Any notice given before IP completion day by HMRC to manufacturers and importers in accordance with Article 3(3) of the EU Commission Implementing Decision that has not been replaced or revoked before IP completion day, is treated as notice given under regulation 13(2) of the 2019 Regulations. 2 In this regulation— “EU Commission Implementing Decision” means the Commission Implementing Decision (EU) 2018/576 of 15 December 2017 on technical standards for security features applied to tobacco products ; “HMRC” has the meaning given in regulation 2 of the 2019 Regulations. PART 4 Consequential Amendments 13 1 The Standardised Packaging of Tobacco Products Regulations 2015 are amended as follows. 2 In regulation 2 (interpretation)— a for the definition of “Commission Implementing Regulation” substitute— “Commission Implementing Regulation” means— the Commission Implementing Regulation (EU) 2018/574 of 15 December 2017 on technical standards for the establishment and operation of a traceability system for tobacco products as it applies in the United Kingdom, and in relation to NI tobacco product, the Commission Implementing Regulation (EU) 2018/574 of 15 December 2017 on technical standards for the establishment and operation of a traceability system for tobacco products as it has effect by virtue of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement; , b in the appropriate place insert— “NI tobacco product” has the meaning given in regulation 2 of the Tobacco and Related Products Regulations 2016 ; . Justin Holliday Angela MacDonald Two of the Commissioners for Her Majesty’s Revenue and Customs 9th December 2020