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The Customs (Import Duty) (EU Exit) Regulations 2018

Type Statutory-Instrument

Publication 2018-11-29

Last updated 2025-07-16

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(6) An approval under paragraph (5) is subject to the condition that it does not permit the approved person to defer payment of any liability to import duty notified within a calendar month that is above the specified limit unless the approval is amended in accordance with paragraph (7).

(7) Where a person is approved under paragraph (5) HMRC may on application by the approved person amend the approval to replace the condition imposed by paragraph (6) with a condition that the approval does not permit the approved person to defer payment of any liability to import duty notified within a calendar month that is above a different limit specified in the amended approval (“the amended limit”) if—

(a) the person is an authorised economic operator; or

(b) HMRC is satisfied that the person has sufficient resources to be able to pay any liability up to the amended limit.

(8) HMRC may approve a person to defer payment of liability to import duty above the specified limit, up to a limit specified in the approval (“the higher limit”), under paragraph (4) only if—

(a) the person is an authorised economic operator; or

(b) the following eligibility criteria ... are met—

(i) the person meets the eligibility criteria in paragraph (5)(b); ...

(ii) HMRC is satisfied that the person has sufficient resources to be able to pay any liability up to the higher limit ; and

(iii) the person is established in the United Kingdom.

(9) An approval to defer payment of liability to import duty under paragraph (5) or (8) is granted subject to such conditions as may be specified in the approval notification issued in relation to the approval.

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) If a liability to import duty is determined on the basis of information contained in a Customs declaration corrected (or required to be corrected) under paragraph 14 of Schedule 1 to the Act, a person who is liable to pay the import duty, who is not approved to defer payment of liability to import duty under paragraph (5) or paragraph (8), must pay the duty before the end of the period specified in a notice published by HMRC....

(11A) HMRC must publish a notice specifying the payment dates for the purposes of paragraphs (1) to (4) and (11).

(12) In a case within paragraph (11), if the inaccuracy in the Customs declaration is discovered after the date on which the person was notified of the liability to pay import duty determined on the basis of the information contained in the Customs declaration before the correction, paragraph (11) only applies in relation to any additional import duty arising as a result of the correction.

(13) If the duty to notify a liability to pay import duty is taken to be met under regulation 40A (notification of liability where declaration made by carnet) payment must be made in accordance with Article 7 of the ATA Convention or Article 9 of Annex A to the Istanbul Convention as the case may be.

(14) In this regulation—

“duty deferment arrangement” has the meaning given in regulation 3 of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010;

“excise duty” has the meaning given by section 49 of the Act;

“import VAT” means value added tax chargeable by virtue of section 1(1)(c) of the Value Added Tax Act 1994;

“relevant duties and taxes” means—any liability to import duty or duty charged under section 30C of the Act notified to a person within a calendar month, which—has not been discharged in accordance with regulation 41;is not suspended in relation to that person under regulation 44;has not been remitted in accordance with Part 7 of these Regulations;any liability to excise duty arising from an excise duty point provided for in regulation 5 of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010 that occurs within the same calendar month, where the liability is subject to a duty deferment arrangement; andany liability to import VAT incurred on the importation of goods in relation to which liability to import duty is notified in the same calendar month except to the extent that the obligation to pay that VAT is deferred or postponed without a requirement for a guarantee by virtue of regulations modifying the effect of section 16(2) of the Value Added Tax Act 1994;

“specified limit” in relation to a calendar month means where the combined value of the liability to the relevant duties and taxes is an amount set out in a notice published by HMRC Commissioners.

(15) In this regulation—

(a) a liability to import duty is above the specified limit, the amended limit or the higher limit, if—

(i) it is notified to a person who has, in the same calendar month, been notified of, or otherwise incurred, liability to relevant duties and taxes of, or exceeding, the specified limit, the amended limit or the higher limit as the case may be; or

(ii) it is the part of a notified liability to import duty that, when added to other liability to relevant duties and taxes notified or otherwise incurred in the calendar month, exceeds the specified limit, the amended limit or the higher limit as the case may be;

(b) reference to duty to which the approval relates means duty which is not above the higher of—

(i) the specified limit; and

(ii) any higher limit specified in a notification of approval issued in relation to an amendment of an approval under paragraph (7) or an approval under paragraph (8).

Suspension of period for payment

44

(1) The period for discharging a liability to pay import duty incurred in respect of goods is suspended in the cases set out in paragraphs (2), (3), (5) and (6).

(2) If an application for remission of the liability is made where regulation 48 (incorrect amount of import duty), 50 (lower rate of import duty available), 51 (defective and non-compliant chargeable goods) or 52 (just and equitable reduction) applies, the period for discharging the liability is suspended until the application is rejected under regulation 63 (acceptance and rejection) or determined under regulation 64 (determinations).

(3) If—

(a) two or more persons have been notified of a liability to pay import duty incurred in respect of goods; and

(b) one or more of those persons is involved in a breach of a relevant Customs obligation in respect of those goods,

in relation to any person who is not involved in the breach, the period for discharging the liability is suspended for one year if that person gives or has given a guarantee in respect of that liability.

(4) In a case within paragraph (3)—

(a) no guarantee is required if in the opinion of an HMRC officer the requirement of a guarantee would be likely to cause serious economic or social difficulties to the person; and

(b) the duration of the suspension may be extended if an HMRC officer thinks an extension is just and reasonable in the circumstances.

(5) If a liability to import duty relates to—

(a) a relevant decision falling within paragraph (a) or (h) of section 13A(2) of the Finance Act 1994 , or

(b) a decision on a review of such a relevant decision,

which is the subject of an appeal under section 16 of that Act where paragraphs (a) or (b) of subsection (3) of that section applies, the period for discharging the liability in respect of that duty is suspended until the appeal is determined.

(6) If notice of seizure has been given in relation to goods under paragraph 1(1) of Schedule 3 to CEMA 1979 or goods have been seized in a case within paragraph 1(2) of that Schedule, the period for discharging a liability to import duty incurred in respect of the goods is suspended until the goods are condemned as forfeited under paragraph 5, 6 or 7 of that Schedule or determined by a court as not liable for forfeiture in proceedings for condemnation.

Interest on late payment of import duty

45

(1) Import duty payable carries interest at the late payment interest rate from the late payment interest start date until the date of payment.

(2) The late payment interest start date is the date following the date on or before which a liability to pay import duty must be discharged.

(3) But where a person is liable to import duty in respect of goods because the person was involved in a breach of a relevant Customs obligation in relation to the goods, the late payment interest start date is the date which would have applied had the breach not occurred and a Customs declaration had been made as required.

(4) The late payment interest rate is the percentage per annum given by the formula—

$$B R + 3.5$where BR is the official Bank rate determined by the Bank of England Monetary Policy Committee at the operative meeting.$

(5) For the purposes of paragraph (4), “the operative meeting”, in relation to the late payment interest rate applicable in respect of any day, means the most recent meeting of the Bank of England Monetary Policy Committee apart from any meeting later than the 13th working day before that day.

(6) HMRC Commissioners may waive a charge to interest under this regulation where they think that the charge would cause serious economic or social difficulties to the person liable to the charge.

(7) No interest arises under this regulation if the amount of import duty is less than £9.

(8) Any interest determined under this regulation is recoverable as if it were an amount of import duty.

(9) Paragraph (1) applies even if the late payment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882 .

(10) Late payment interest is not payable on late payment interest.

(11) For the purposes of this regulation, a reference to import duty being paid includes a reference to its being set off against an amount payable by HMRC (and, accordingly, the reference to the date of payment includes a reference to the date from which the set-off takes effect).

PART 7 — Remission and repayment of import duty

CHAPTER 1 — Preliminary

Interpretation

46

In this Part—

“application for remission of duty” has the meaning given by regulation 54(3);

“application for repayment of duty” has the meaning given by regulation 55(3);

“reduced duty case” has the meaning given by regulation 47; and

“remit” means to discharge a liability to import duty.

CHAPTER 2 — Reduced duty cases

Reduced duty cases

47

In this Part, a “reduced duty case” is a case described in this chapter and the amount of import duty in respect of which a remission or repayment may be made further to an application under chapter 3 is the amount stated in each case.

Incorrect amount of import duty

48

(1) Paragraph (3) applies where—

(a) a notification of liability to pay import duty states an amount of duty in respect of goods which is lower than the amount correctly due;

(b) the incorrect amount arose by virtue of a mistake made by HMRC or the customs authorities of the territory from which the goods were exported;

(d) the applicant has taken all reasonable steps to ensure compliance with—

(i) the Customs procedures relevant to the goods; and

(ii) any requirements imposed by an HMRC officer concerning control of the goods ; and

(e) the goods are not, and have not been, liable to forfeiture.

(2) A mistake under paragraph (1) does not include a mistake by HMRC which gives rise to a reduced duty case under regulation 50.

(3) The difference between the correct and incorrect amount of duty is the amount which may be remitted or repaid.

Lower rate of import duty applied incorrectly

49

(1) Subject to paragraph (2), paragraph (3) applies where—

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

(b) at the time of the acceptance, a lower rate of import duty was applied to the goods by virtue of provision made under any of sections 9 to 12 of the Act;

(c) that lower rate was applied because of information provided by the customs authorities (“the exporting authorities”) of the territory from which the goods were exported;

(d) that information was inaccurate;

(e) any conditions relevant to the application of the lower rate of import duty have been complied with; and

(f) had the lower rate not been applied, the liability to pay import duty in respect of the goods would have been for an amount (“the higher amount”) more than that stated (“the stated amount”) in the declaration or, where it is given, in the notification of liability.

(2) Paragraph (3) does not apply where the inaccuracy arose by virtue of inaccurate information provided to the exporting authorities by the exporter unless—

(a) the exporter reasonably believed the information to be true and accurate; and

(b) the exporting authority acted reasonably in failing to correct the inaccuracy.

(3) The difference between the higher amount and the stated amount is the amount which may be remitted or repaid.

Lower rate of import duty available

50

(1) Paragraph (2) applies where a notification of liability to pay import duty states an amount of duty in respect of goods which is greater than the amount correctly due because by mistake an incorrect rate of import duty was applied.

(2) The difference between the correct and incorrect amount of duty is the amount which may be remitted or repaid.

Defective and non-compliant chargeable goods

51

(1) Subject to paragraph (3), paragraph (4) applies where—

(a) chargeable goods are released to a Customs procedure;

(b) a contract was entered into for the sale and purchase of the goods before that release; and

(c) the buyer notified the seller that the goods were rejected as not being in compliance with the contract as soon as practicable after the grounds for rejection became known to the buyer.

(2) In paragraph (1)(c)—

(a) grounds for rejection include where the goods are defective or damaged; and

(b) the rejection may occur after the goods cease to be chargeable goods.

(3) Paragraph (4) does not apply where—

(a) the goods have been used or processed, other than that which was necessary to determine if the goods were in compliance with the contract; or

(b) before the goods were released to a Customs procedure, the goods were declared for a special Customs procedure in order to be tested to determine if the goods were in compliance with the contract, unless such testing would not normally have revealed such compliance.

(4) The amount of import duty in respect of the rejected goods is the amount which may be remitted or repaid.

Just and equitable reduction

52

(1) Paragraph (2) applies where—

(a) a person (“P”) making the application under chapter 3 incurs a liability to import duty in respect of the goods stated in the application in the course of a business carried on by P;

(b) P has taken all reasonable steps to ensure compliance with—

(i) the Customs procedures relevant to the goods; and

(ii) any requirements imposed by an HMRC officer concerning control of the goods; and

(c) HMRC consider that by reason of exceptional circumstances which apply to that business, were HMRC to enforce some or all of the liability against P, P would suffer a disadvantage in carrying on that business compared to other persons carrying on a similar business.

(2) The amount of import duty which HMRC considers is just and equitable to reduce having regard to the exceptional circumstances is the amount which may be remitted or repaid.

Withdrawal of a Customs declaration

53

(1) Paragraph (2) applies where a Customs declaration is withdrawn in accordance with paragraph 16 of Schedule 1 to the Act and before the withdrawal a payment is made in respect of the liability to import duty incurred under that declaration.

(2) The amount paid is the amount which may be repaid.

CHAPTER 3 — Applications for remission and repayment

Remission

54

(1) Paragraph (2) applies in relation to a liability to import duty in respect of which no payment has been made.

(2) An application may be made to HMRC to remit the liability (in whole or part) by virtue that a reduced duty case applies, other than the reduced duty case described in regulation 53.

(3) An application described in paragraph (2) is an application for remission of duty.

(4) Where a determination to grant an application has effect under regulation 64(3), the liability is remitted to the extent stated in the determination.

(5) Paragraph (4) is subject to regulation 69.

Repayment

55

(1) Paragraph (2) applies in relation to a liability to import duty in respect of which a payment has been made.

(2) An application may be made to HMRC to repay (in whole or part) the payment by virtue that a reduced duty case applies.

(3) An application described in paragraph (2) is an application for repayment of duty.

(4) A determination to grant an application for repayment of duty which has effect under regulation 64(3) is subject to regulation 69.

Applications for remission and repayment of duty

56

(1) An application for remission or repayment of duty may be made notwithstanding that the goods stated in the application cease to be chargeable goods.

(2) Paragraph (3) applies where—

(a) an application for remission of duty has been made which is not withdrawn, rejected or determined; and

(b) a payment is made in respect of the liability which is the subject of the application.

(3) Where—

(a) the applicant makes the payment, the application is to be treated as an application for repayment of duty; or

(b) a person other than the applicant makes the payment, the application is to be treated as withdrawn,

and HMRC must notify the applicant of that fact as soon as practicable after the payment is made.

(4) No application may be made where—

(a) an appeal has been made in respect of the amount of the liability to import duty to which the application would apply; and

(b) the appeal has not been determined.

Applicants

57

(1) An application for remission of duty may be made by a person who is liable to pay the import duty.

(2) An application for repayment of duty may be made by a person who has paid some or all of the payment to which the application relates.

Content of applications

58

(1) An application must state—

(a) the goods to which the application relates;

(b) the reduced duty case which applies;

(d) the amount of the liability to import duty;

(e) the amount which the applicant claims should be remitted or repaid;

(f) where payment has been made in respect of the liability, the amount paid and the person who paid it; and

(g) the location of the goods.

(2) An application must—

(a) include such details identifying each person making the application;

(b) be made to the place;

(d) be accompanied by such information,

as specified in a notice published by HMRC.

(3) HMRC must publish a notice specifying the matters referred to in paragraph (2).

Time periods for applications

59

(1) Subject to paragraphs (2) to (4), an application for remission or repayment of duty must be made by no later than the end of the following periods beginning with the day after the date of the notification of liability to pay import duty in respect of the goods—

(a) except where sub-paragraph (b) applies, three years;

(b) where the application concerns the reduced duty case described in regulation 51, one year.

(2) Where an appeal was made in respect of the amount of import duty to which the application relates and the appeal has been determined, the period between the commencement and determination of the appeal is to be disregarded for the purposes of determining the periods in paragraph (1).

(3) Where the application concerns the reduced duty case described in regulation 53, the application must be made by no later than the date required to notify the withdrawal of the Customs declaration as provided by public notice made under paragraph 16(a) of Schedule 1 to the Act.

(3A) Where the application concerns the reduced duty case described in regulation 53B, the application must be made by no later than three years beginning with the day following the day on which the public notice is published.

(4) Where by virtue of force majeure or unforeseeable circumstances it would be unreasonable to expect a person to make an application in time, HMRC may, on written request by the person which gives reasons for the request, allow the person to make the application out of time.

CHAPTER 4 — Post-application

Meaning of “application”

60

In this chapter and the following chapters of this Part, “application” means an application for remission or repayment of duty, or both, as the case may be.

Inspection of goods

61

(1) Subject to paragraphs (2) and (3), in respect of the goods stated in the application, the applicant must—

(a) ensure that the goods are available for inspection by an HMRC officer on reasonable notice; and

(b) except where the goods have been inspected by an HMRC officer and no further inspection is required, notify HMRC in advance if the applicant intends to move the location of the goods and notify the intended new location.

(2) Where the goods stated in the application are destroyed or dismantled further to a consent given under regulation 62(6)(a), paragraph (1) applies instead to any remains or components of the goods.

(3) Paragraph (1) does not apply where—

(a) the goods, or the remains or components of the goods, are removed from the United Kingdom further to a consent given under regulation 62(6)(b) or (7); or

(b) the goods are declared for an inward processing , transit or storage procedure further to a consent given under regulation 62(6)(c).

Determinations to grant applications

62

(1) HMRC may determine to grant an application if it is satisfied that—

(a) the application has been made in compliance with chapter 3;

(b) the reduced duty case stated in the application applies; and

(c) incorrect or incomplete information which was deliberately misleading such as to enable the application to be made was not provided to HMRC by a person responsible for complying with the Customs procedures relevant to the goods stated in the application.

(2) In the case of an application for remission, the grant of the application does not, unless the determination provides otherwise, discharge the liability of a person who was not an applicant.

(3) An application may be granted—

(a) in the case of a joint application, other than to all the applicants;

(b) to remit a liability or to make a repayment of an amount different to that stated in the application, so long as the amount does not exceed that provided by the applicable reduced duty case;

(i) fewer goods than stated in the application; or

(ii) remains or components of the goods stated in the application, in cases where the goods are, or are to be, destroyed or dismantled; or

(d) subject to the compliance with conditions, including that any of the goods stated in the application, or components of them, must be destroyed or dismantled.

(4) Except for the conditions set out in regulation 67, where an application is granted subject to compliance with conditions, they may be varied or waived by HMRC.

(5) Paragraph (6) applies—

(a) where an application concerns the reduced duty case described in regulation 51; and

(b) before HMRC—

(i) accepts or rejects the application under regulation 63; or

(ii) determines the application under regulation 64.

(6) HMRC may consent on request by the applicant to the goods stated in the application being—

(a) destroyed or dismantled;

(b) removed from the United Kingdom in accordance with the applicable export provisions where the removal is from Great Britain, and in accordance with Union customs legislation where the removal is from Northern Ireland; ...

(ba) removed from Great Britain to Northern Ireland; or

(c) declared for an inward processing , transit or storage procedure but such a consent is not an authorisation to make the declaration.

(7) Where HMRC consents to the destruction or dismantling of the goods it may also consent to—

(a) the removal from the United Kingdom of any remains or components of the goods in accordance with the applicable export provisions where the removal is from Great Britain, and in accordance with Union customs legislation where the removal is from Northern Ireland; or

(b) the removal of any remains or components of the goods from Great Britain to Northern Ireland.

Acceptance and rejection

63

(1) By no later than 30 days after the date on which an application is received by HMRC, HMRC must notify the applicant that the application—

(a) has been made in accordance with chapter 3 and is accepted; or

(b) is rejected for the reasons set out in the notification.

(2) If an acceptance or rejection is not made as required by paragraph (1), the application is deemed to be rejected.

Determinations

64

(1) Where an application is accepted under regulation 63(1)(a), HMRC must notify the applicant that it has—

(a) determined to grant the application (in whole or part); or

(b) determined to refuse the application.

(2) Where—

(a) paragraph (1)(a) applies, the notification must include details of—

(i) how the amount of reduced duty has been calculated; and

(ii) such of the matters, if any, set out in regulation 62(3) as are applicable to the case;

(b) paragraph (1)(b) applies, the notification must state the reasons for the refusal.

(3) A determination to grant the application (in whole or part)—

(a) which is not made subject to compliance with conditions, has effect on the date of the determination;

(b) which is made subject to compliance with conditions, has effect once HMRC is satisfied that the conditions have been complied with.

(4) Where paragraph (3)(b) applies and HMRC is not so satisfied—

(a) HMRC must as soon as practicable notify the applicant that the application is treated as withdrawn; and

(b) no further application may be made in relation to the goods to which the withdrawn application applied.

(5) A notification of determination under paragraph (1) must be made by no later than the expiry of—

(a) the period of 120 days beginning with the day after the date of the acceptance of the application; or

(b) an extended period, not exceeding 30 days, beginning with the day when the period of 120 days expires, where HMRC needs an extension in order to reach a determination.

(6) HMRC must notify the applicant within the period of 120 days of any such extended period which it needs.

(7) Where HMRC fails to reach a determination in accordance with paragraph (5), the application is deemed to be refused.

(8) Where the application is an application for repayment of duty, HMRC must pay to the applicant the amount it has determined as a repayment as soon as practicable after the determination has effect.

Where rejection or refusal is required

65

(1) Paragraph (4) applies where—

(a) the applicant has failed without reasonable excuse to comply with regulation 61(1);

(b) HMRC is not satisfied that the goods which are the subject of the application are the same as those in respect of which the liability to import duty was incurred; or

(c) except where paragraph (3) applies, in the reduced duty case described in regulation 51, the goods are sold after the application is made.

(2) It is not a reasonable excuse to fail to comply with regulation 61(1) by virtue that the goods or the remains or components of the goods are—

(a) except as provided by regulation 61(2), destroyed or dismantled; or

(b) removed from the United Kingdom.

(3) Paragraph (1)(c) does not apply where the goods are sold after the goods are removed from the United Kingdom or declared for an inward processing , transit or storage procedure, further to consent given under regulation 62(6)(c).

(4) HMRC must reject the application under regulation 63(1)(b) or refuse the application under regulation 64(1)(b) as soon as practicable after it becomes aware of the occurrence of a matter in paragraph (1).

Lower rate of import duty available: required rejection

66

(1) This regulation applies where—

(a) an application concerns the reduced duty case described in regulation 50;

(b) a Customs declaration for the free-circulation procedure was made in respect of the goods stated in the application; and

(2) Except where paragraph (3) applies, the application must be rejected where, at the date the application is made, a lower rate of import duty can no longer be applied to the goods by virtue of provision made under any of sections 9 to 13 of the Act.

(3) Where the reason that such a lower rate of import duty was not applied at the time the declaration for free-circulation of the goods was accepted was because of a failure by HMRC, the application is not required to be rejected if the Customs declaration which was accepted contained all the information necessary to have enabled HMRC to apply the lower rate of duty.

Defective and non-compliant chargeable goods: required conditions

67

(1) This regulation applies where—

(a) an application concerns the reduced duty case described in regulation 51; and

(b) a determination is made to grant the application (in whole or part).

(2) Subject to paragraph (3), the determination must—

(a) impose a condition that the goods—

(i) are destroyed or dismantled;

(ii) are removed from the United Kingdom in accordance with the applicable export provisions where the removal is from Great Britain, and in accordance with Union customs legislation where the removal is from Northern Ireland; or

(iii) are declared for an inward processing , transit or storage procedure but such a condition is not an authorisation to make a declaration for the procedure; and

(b) state a period for compliance with the condition imposed, being a period of no longer than 60 days beginning with the date of the determination.

(3) Paragraph (2) does not apply if one of the matters in paragraph (2)(a) has occurred before the time of the determination further to a consent given under regulation 62(6).

Interest payable by HMRC

68

(1) Paragraph (2) applies where—

(a) an application for repayment of duty is made;

(b) a period of 30 working days has expired since the date that a determination to grant the application has effect as provided by regulation 64(3);

(d) that failure is substantially the fault of HMRC.

(2) HMRC must pay interest at the applicable rate on the amount of the unpaid repayment for the period—

(a) beginning with the day after the date on which the 30 working days period described in paragraph (1)(b) expires; and

(b) ending with the date on which the amount is paid in full.

(3) In paragraph (2), “the applicable rate” means the rate of interest provided by regulations for the purposes of section 197(2)(f) of the Finance Act 1996 .

CHAPTER 5 — Remission or repayment made in error

Remission or repayment made in error

69

(1) Paragraph (2) applies where—

(a) a determination to grant an application has effect as provided by regulation 64(3);

(b) HMRC finds that the determination was made in error; and

(c) that finding is made before the expiry of the period of X days beginning immediately after the expiry of the period within which a notification of liability to import duty may be given in respect of the goods stated in the application.

(2) The determination is to be treated as null and void.

(3) Where paragraph (2) applies, HMRC must give notification of that fact as soon as practicable to the applicant and such other persons as HMRC considers are likely to be affected by the matter.

(4) If a repayment was made to a person to whom notification is given, that person must pay that repayment to HMRC, together with any interest paid by HMRC under regulation 68, before the expiry of the period of 10 days beginning with the date following the date on which the notification is given.

(5) In paragraph (1)(c), “X days” means the number of days in the period beginning with the date on which the application referred to in paragraph (1)(a) was made and ending with the date on which the application was determined.

CHAPTER 6 — Remission or repayment without an application

Remission or repayment without an application

70

(1) Paragraph (2) applies where—

(a) HMRC is satisfied that, had an application been made in accordance with chapter 3, HMRC would have determined to grant the application; and

(b) HMRC is aware of a person (“a relevant person”) it considers would have been entitled to make the application.

(2) Where this paragraph applies, HMRC may make a determination to remit a liability or make a repayment as it would have done had the application been made.

(3) Where such a determination is made, HMRC must give notification of the determination as it would have done had the application been made.

(4) HMRC may treat the relevant person as the person to whom notification is to be given or any repayment is to be paid.

CHAPTER 7 — Remission in cases of relevant breaches and in cases of minimal liability

Interpretation applicable to chapter 7

71

For the purposes of this chapter—

“no significant effect”, on the occurrence of a relevant breach or failure in relation to a Customs procedure or an outward processing procedure , has the meaning given by regulation 73;

“relevant breach or failure” has the meaning given by regulation 72.

Relevant breaches or failures

72

(1) “A relevant breach or failure” means any relevant breach or failure described in this regulation.

(2) A relevant breach is where a person—

(a) makes a Customs declaration for a special procedure but the person has no entitlement to make it; or

(b) breaches any requirement relating to the procedure.

(3) A relevant breach is where a person—

(a) breaches the terms of the declaration for an outward processing procedure;

(b) breaches any other requirement in relation to the procedure; or

(c) in the case of goods being processed for any other purpose except for their repair without charge, imports the goods not in accordance with the procedure.

(4) A relevant breach is where a person is in breach of—

(a) section 5(1)(b) of the Act (presentation of goods to Customs on import where required); or

(b) section 35(2) of the Act (export of goods in accordance with the applicable export provisions).

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

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

(b) paragraph 3(4) of Schedule 1 to the Act (Customs declaration not made before goods are imported); or

No significant effect on procedures

73

(1) This regulation provides for the purposes of regulation 75(1)(c) for cases where the occurrence of a relevant breach or failure has no significant effect on a Customs procedure or an outward processing procedure, as the case may be.

(2) There is no significant effect on the procedure where—

(a) the relevant breach or failure concerns a person exceeding by a period (“the exceeded period”) the time limit within which the person is required to comply with a requirement in relation to the procedure; and

(b) had an application to extend the time limit been made, HMRC would have been likely to grant an extension of time for compliance by a period no shorter than the exceeded period.

(3) There is no significant effect on the procedure where subsequent to the relevant breach—

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

(b) accepted for that procedure.

(4) There is no significant effect on the procedure where—

(a) the relevant breach consists of a movement of goods other than as agreed by an HMRC officer; but

(b) subsequent to the breach, HMRC agrees to the location of the goods.

(5) Paragraph (6) applies where—

(a) the relevant breach consists of making a Customs declaration containing an error;

(b) the goods have been released to a special Customs procedure , except a transit procedure or a free zone procedure , or are held in a temporary storage facility; and

(6) There is no significant effect on a Customs procedure if, had the error been known to HMRC before the acceptance, HMRC would have been likely not to have delayed or prevented the acceptance.

(7) There is no significant effect on the Customs procedure if the person who causes the relevant breach or failure to occur notifies full details of the breach to HMRC before—

(a) a person is notified of a liability to import duty in respect of the goods; or

(b) HMRC takes any steps in relation to the goods which would likely lead HMRC to discover that the relevant breach or failure has occurred.

No applications for remission of duty

74

No application for remission of duty is to be made in respect of the cases described in regulations 75 to 78.

No avoidance of liability

75

(1) Paragraph (2) applies where—

(a) a relevant breach or failure occurs;

(b) a liability to import duty in respect of chargeable goods is incurred in consequence;

(c) for a case to which regulation 73 applies, the relevant breach or failure has no significant effect on a Customs procedure or an outward processing procedure, as applicable to the breach or failure;

(d) none of the persons who caused the relevant breach or failure to occur did so for the purposes of avoiding any or all of the liability; and

(e) a person liable to the import duty—

(i) notifies HMRC of the relevant breach or failure as soon as practicable after it occurred;

(ii) takes all steps which can reasonably be taken to rectify the consequences of the breach or failure; and

(iii) is not in breach of, as the case may be, a Customs procedure or an outward processing procedure in relation to the goods, other than in respect of the relevant breach or failure.

(2) HMRC must remit the liability to import duty incurred in consequence of the relevant breach or failure in respect of each person liable to pay the duty.

Goods leaving the United Kingdom

76

(1) Paragraph (2) applies where—

(a) a relevant breach or failure occurs;

(b) a liability to import duty in respect of chargeable goods is incurred in consequence; and

(i) notifies HMRC of the relevant breach or failure as soon as practicable after it occurs and before HMRC discovers it; and

(ii) provides to HMRC sufficient evidence to show that the goods were not used or consumed in the United Kingdom and have permanently left the United Kingdom.

(2) Subject to paragraph (3), HMRC must remit the liability to import duty incurred in consequence of the relevant breach or failure in respect of each person liable to pay the duty.

(3) No remission may be made in respect of a person who, whether alone or with another person, caused the relevant breach or failure to occur for the purposes of avoiding any or all of the liability.

Assistance to HMRC

77

(1) Paragraph (2) applies where—

(a) a relevant breach or failure occurs;

(b) a liability to import duty in respect of chargeable goods is incurred in consequence;

(c) any of the persons responsible for causing the relevant breach or failure to occur did so for the purposes of avoiding any or all of the liability; and

(d) a person (“P”) who did not cause, alone or with another person, the relevant breach or failure to occur provides assistance to HMRC which enables HMRC to identify the relevant breach or failure.

(2) HMRC must remit the liability of P to the import duty incurred in consequence of the relevant breach or failure.

Minimal liability to import duty

78

(1) Paragraph (3) applies where—

(a) a liability to import duty is incurred;

(b) no notification of the liability is made further to paragraph 2 of Schedule 6 to the Act (notification of liability to pay import duty); and

(2) For the purposes of paragraph (1)(b), a notification of liability includes cases where notification is presumed, taken as met by some specified act or not required further to regulations made under paragraph 3 of Schedule 6 to the Act.

(3) HMRC must remit the liability to import duty in respect of each person liable to pay the duty.

Time periods

79

(1) This regulation has effect for the purposes of regulations 75 to 78.

(2) Except where paragraph (4) applies, any remission must be made as soon as practicable and in any event before the expiry of the period of three years beginning with the date on which the liability to import duty was incurred.

(3) Paragraph (4) applies where—

(a) an HMRC officer considers that a criminal offence may have been committed in relation to the relevant breach or failure; and

(b) the period required to determine that an offence has not been committed is longer than the period provided by paragraph (2).

(4) Any remission must be made on the earlier of—

(a) the determination that no such offence has been committed; and

(b) the expiry of the period of 20 years beginning with the date on which the liability to import duty was incurred.

PART 8 — Customs agents

Residence or establishment in the United Kingdom

80

(1) Except as provided by paragraphs (2) and (3) and regulation 81(3), a person may not act as a Customs agent unless the person is established in the United Kingdom.

(2) Where a person (“P”) acting as principal is not required to be established in the United Kingdom in order to carry out a matter concerning a Customs procedure, a person may act as a Customs agent on behalf of P to carry out the matter and not be established in the United Kingdom.

(3) A person may act as a Customs agent on behalf of a person acting as principal to make a temporary storage declaration and not be established in the United Kingdom.

Transitional provision – declarations made before IP completion day

81

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

(a) chargeable goods are subject to a Customs procedure on or after IP completion day and before IP completion day a declaration was lodged in respect of the goods under Article 171 of the UCC;

(b) that declaration was lodged by a person (“A”) acting in the capacity of a customs representative as described by Article 5(6) of the UCC on behalf of another person (“B”);

(d) no notification was received by HMRC before IP completion day that A's appointment as the customs representative was withdrawn.

(2) Where this paragraph applies—

(a) the disclosure of the appointment to HMRC of A as a customs representative of B is to be treated as the disclosure to HMRC on IP completion day of A as a Customs agent of B in respect of the goods; and

(b) the extent of A's authority to act as a customs representative of B, so far as relevant to the import of the goods, is to be treated as the extent of A's authority to act as a Customs agent of B in relation to those goods.

(3) Where this paragraph applies, regulation 80(1) does not apply to A to the extent that A acts as a Customs agent in relation to the goods.

(4) Paragraphs (2) and (3) also apply in a case to which paragraph (1) applies but where sub-paragraph (a) instead provides—

(a) before IP completion day a temporary storage declaration was lodged in respect of goods under Article 145 of the UCC;

Disclosure of an appointment

82

(1) Where a person (“P”) appoints another person (“A”) to act on P's behalf as a Customs agent, A must disclose that agency in each temporary storage declaration and Customs declaration which is made by A as agent for P.

(2) Paragraph (1) does not apply—

(a) to an appointment of a person as a Customs agent which is treated as disclosed by regulation 81(2)(a); or

(b) where a Customs declaration is made by conduct as provided by section 4 of chapter 2 of Part 4 of these Regulations.

Disclosure of withdrawal of an appointment

83

(1) This regulation applies where disclosure of a person's appointment as a Customs agent is required to be disclosed in a temporary storage declaration or Customs declaration by regulation 82(1).

(2) Where the appointment is withdrawn, subject to paragraphs (4)(a) and (6)(b)(i), the principal must disclose the withdrawal by amending each temporary storage declaration or Customs declaration in which disclosure of the appointment was required to be given.

(3) Paragraph (4) applies where—

(a) an appointment in respect of a temporary storage declaration or Customs declaration is withdrawn; and

(b) the principal appoints another person (“C”) as a Customs agent in respect of the declaration.

(4) Where this paragraph applies, in respect of the temporary storage declaration or Customs declaration C must—

(a) comply with paragraph (2) instead of the principal; and

(b) disclose with the amendment to the declaration that C is acting as Customs agent in relation to the declaration.

(5) Paragraph (6) applies where, in respect of a Customs declaration, a Customs agent originally acting in the capacity of—

(a) a direct agent becomes an agent acting in the capacity of an indirect agent ; or

(b) an indirect agent becomes an agent acting in the capacity of a direct agent.

(6) Where this paragraph applies, in respect of the Customs declaration—

(a) the original appointment is treated as withdrawn; and

(b) the Customs agent must—

(i) comply with paragraph (2) instead of the principal; and

(ii) disclose with the amendment to the declaration the agent's new capacity.

(7) Paragraph (8) applies where a requirement to make a disclosure is required by this regulation and the requirement—

(a) applies once a relevant event occurs ; and

(b) in consequence, can be complied with only if the consent of an HMRC officer is given further to paragraph 16(b) of Schedule 1 to the Act.

(8) The consent of an HMRC officer is to be treated as given in relation to the making of the disclosure.

PART 9 — Approvals and authorisations and authorised economic operators

Interpretation

84

In this Part, references to an approval include an authorisation.

Application for approval

85

(1) Subject to paragraph (3) and regulation 85A, any matter requiring approval under these Regulations requires an application which must—

(a) include details identifying the applicant;

(b) be made to the place;

(d) be accompanied by such information,

as specified in a notice published by HMRC.

(2) HMRC must publish a notice specifying the matters referred to in paragraph (1).

(3) Paragraph (1) does not apply in relation to any case of a type specified in a notice published by HMRC.

(4) In a case of a type specified in a notice under paragraph (3) a person may make an application for approval in accordance with this Part unless prohibited by regulation 86.

Cases in which an application for approval may not be made

86

(1) A person may not make an application for approval if—

(a) the application is in respect of the same matter as a previous approval;

(b) notice was given as provided by section 23(5)(d) of the Act that the previous approval is treated as if it had never been granted; and

(2) Except as provided by paragraph (3), a person may not make an application for approval if—

(a) the application is in respect of the same matter as a previous approval;

(b) the previous approval was revoked for failure to comply with the conditions of the approval; and

(3) A person may not make an application for authorisation as an authorised economic operator if—

(a) a previous authorisation as an authorised economic operator was revoked for failure to comply with the conditions of the authorisation; and

(b) the application is made within a period of three years from the date of the revocation.

(4) For the purposes of this regulation—

(a) references to an approval or authorisation include an approval or authorisation—

(i) granted before IP completion day under the EU Customs Code; or

(ii) treated as valid under Article 251 of the Delegated Regulation,

which corresponds to an approval which may be granted under these Regulations and, in relation to such an approval or authorisation, reference to conditions of the approval or the authorisation includes conditions specified in the EU Customs Code or in the Regulations referred to in Article 251 of the Delegated Regulation; and

(b) a reference to a notice given under section 23(5)(d) of the Act includes a reference to a notification of an annulment of a decision under Article 27 of the UCC where the holder of the decision was notified of the annulment under Article 27(2) of the UCC before IP completion day.

HMRC to consider whether an approval falls to be determined

87

By no later than 30 days after the date on which an application, or purported application, for approval is received by HMRC, HMRC must notify the person making the application or purported application that —

(a) the application is one that falls to be determined; or

(b) the purported application does not fall to be determined because, for the reasons set out in the notification,—

(i) the purported application is not made in accordance with regulation 85; or

(ii) the purported application is made contrary to regulation 86.

Appeal where HMRC fail to consider an application

88

(1) An applicant or purported applicant may appeal to an appeal tribunal in a case where HMRC have failed to comply with regulation 87.

(2) The power of the appeal tribunal is limited to the power to direct HMRC, in a case where it is satisfied that HMRC have acted unreasonably, to consider the application, or purported application, as mentioned in regulation 87 within such further period as is specified by the tribunal.

(3) The appeal must be made within 30 days following the expiry of the 30 day period referred to in regulation 87.

Grant or refusal of an application for approval

89

(1) Within the specified period, HMRC must notify an applicant that an application for approval which falls to be determined—

(a) is granted, or

(b) is refused for the reasons set out in the notification.

(1A) An officer of HMRC may give a notice to the applicant specifying further information which must be provided to HMRC in order to determine the application.

(1B) A notice given under paragraph (1A) must specify a period within which the further information must be provided.

(1C) The period under paragraph (1B) may be extended where, in the opinion of an HMRC officer, it is appropriate to do so.

(2) Subject to paragraph (2A), the specified period is—

(a) in relation to an application for approval to declare goods for—

(i) an outward processing procedure ;

(ii) an inward processing procedure ;

(iii) an authorised use procedure ; or

(iv) a temporary admission procedure ,

30 days after the date on which the application was received by HMRC;

(b) in relation to an application for approval to operate premises as a place for keeping goods declared for a storage procedure , 60 days after the date on which the application was received by HMRC; and

(2A) Where a notice is given under paragraph (1A), the period specified under paragraph (1B), or extended under paragraph (1C), is to be disregarded for the purposes of calculating the specified period.

(3) The specified period may be extended in the following cases—

(a) where HMRC notify the applicant stating the reason for the extension, the specified period may be extended by a further period of up to 30 days;

(b) where HMRC suspect the applicant has been involved in a breach of a Customs obligation and are conducting an investigation in relation to that breach, the specified period may be extended by a further period of up to nine months on notification to the applicant (unless such notification would be likely to jeopardise the investigation);

(c) where the applicant makes a request in writing, stating the reasons for the request, HMRC may agree to extend the specified period by such further period as an HMRC officer considers reasonable in the circumstances; and

(d) in relation to an application for authorisation as an authorised economic operator, the specified period may be extended on notification to the applicant by—

(i) a further period of up to 60 days; or

(ii) where the applicant is subject to criminal proceedings relevant to the application, such further period as an HMRC officer considers reasonable in the circumstances.

(3A) Where—

(a) an application is not required by virtue of regulation 85(3); and

(b) HMRC has granted an approval in relation to a person who has not made an application,

HMRC must notify the person of the approval.

(4) Where an ... approval is granted, the notification of the approval must specify—

(a) the date from which the approval has effect;

(b) the date, if any, on which the approval will cease to have effect; and

(5) An approval is subject to compliance with conditions specified in or under the regulations relating to the approval or in the notification of the approval.

(5A) For the purposes of paragraphs (4) and (5) HMRC may publish a notice specifying conditions to which an approval is subject.

(6) If an application for approval is not granted or refused as required by this regulation, the application is treated as refused.

Notification of HMRC of change of circumstances relating to an approval

90

An approved person must notify HMRC as soon as reasonably practicable if—

(a) that person fails to meets any condition to which the approval is subject;

(b) that person ceases to satisfy any eligibility criteria which applied when the approval was granted; ...

(ba) in a case where HMRC has granted an approval in relation to a person who has not made an application, there are any material changes since the approval was granted concerning any matter specified in a notice published by HMRC Commissioners; or

(i) the details relating to the applicant; or

(ii) the information required to accompany the application.

Amendment, suspension or revocation of approval

91

(1) An approval may be suspended or revoked, as appropriate in the opinion of an HMRC officer, if—

(a) the approved person fails to meet any condition to which the approval is subject; or

(b) the approved person ceases to satisfy any eligibility criteria which applied when the approval was granted.

(2) An approval may be amended, suspended or revoked, as appropriate in the opinion of an HMRC officer, if—

(a) the approved person makes an application in writing to HMRC for the approval to be amended, suspended or revoked;

(b) the approved person has been involved in a breach of a Customs obligation;

(c) it is necessary in consequence of an enactment, or a determination of a court or tribunal in relation to an enactment, relevant to the activities carried on pursuant to the approval; or

(d) it is necessary in consequence of a change of circumstances of the approved person relevant to the activities carried on pursuant to the approval.

(2A) Paragraph (2B) applies where—

(a) notifications of approvals given under regulation 89(4) relating to a specific type of authorisation or a notice published under regulation 89(5A) have all specified the same conditions (“standard conditions”) whether or not in addition to other conditions; and

(b) HMRC have made changes to the standard conditions which will be specified for future approvals relating to the same type of authorisation.

(2B) An HMRC officer may amend an approval relating to the same type of authorisation as that in paragraph (2A) where in the opinion of that officer it is appropriate to do so in order to avoid divergence between approvals of that type.

(3) An approval may be suspended if an HMRC officer has reasonable grounds for believing that the case is within section 23(5) of the Act.

(4) Subject to paragraph (5), an approval may be suspended under this regulation for such period as an HMRC officer thinks reasonable in the circumstances but must not exceed 60 days unless the approved person agrees to a longer period.

(5) Where HMRC suspect an approved person has been involved in a breach of a Customs obligation and are conducting an investigation in relation to that breach, the approval may be suspended for a period of up to nine months.

(6) An approval may be revoked, as appropriate in the opinion of an HMRC officer, if—

(a) any enactment amends, or has the effect of modifying, the eligibility criteria for approval to carry out the activities to which the approval relates; and

(b) the approved person does not satisfy the eligibility criteria as amended or modified.

Transitional provision – approval or authorisation granted before IP completion day

92

(1) Any application for approval—

(a) made under the EU Customs Code before IP completion day;

(b) which corresponds to an approval which may be granted under these Regulations; and

is to be treated as an application for approval made on IP completion day under these Regulations.

(2) Any approval (“the original approval”) granted by HMRC before IP completion day under the EU Customs Code, or treated as valid immediately prior to IP completion day under Article 251 of the Delegated Regulation, which corresponds to an approval which may be granted under these Regulations and is still subsisting immediately before IP completion day is to be treated as an approval granted by HMRC under these Regulations.

(3) But paragraph (2) does not apply—

(a) if the person to whom the original approval was granted does not satisfy the eligibility criteria which must be met by applicants for the corresponding approval; ...

(b) in relation to Part 15 of these Regulations.

(d) in relation to the Customs (Transitional) (EU Exit) Regulations 2020.

(4) In relation to an approval treated as granted, for the purposes of Part 1 of the Act and these Regulations, reference to conditions of the approval includes conditions (“the original conditions”) to which the original approval was subject to immediately prior to IP completion day.

(5) HMRC may amend the original conditions to which an approval treated as granted is subject by notification to the person to whom the approval was granted as soon as reasonably practicable after IP completion day.

Eligibility criteria for authorised economic operators

93

(1) A person may only be an authorised economic operator if—

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

(b) the person is registered as an economic operator under Article 9 of the UCC;

(c) the person, and any directors or senior employees of that person, have not been involved in a breach of an obligation relating to tax or 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 that person to be an authorised economic operator;

(d) the person, and any directors or senior employees of that person, have no criminal convictions which in the opinion of an HMRC officer are—

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

(ii) relevant to the suitability of that person to be an authorised economic operator;

(e) the person maintains a logistical system and records that identify the movement of, and transactions in, chargeable goods and domestic goods and facilitates compliance with Customs obligations;

(f) in the opinion of an HMRC officer, the person's financial standing makes that person suitable to be an authorised economic operator; and

(g) the person meets any professional standards of competence specified in a notice published by HMRC or, in the opinion of an HMRC officer, the person's practical experience makes that person suitable to be an authorised economic operator.

(2) HMRC may publish a notice specifying professional standards of competence.

PART 10 — Guarantees

Interpretation

94

In this Part—

“charges” means fees under Part 14 of these Regulations, interest payable for late payment of import duty and penalties under Part 3 of the Finance Act 2003 ;

“specified amount” has the meaning given in regulation 98.

Guarantee

95

(1) A guarantee in respect of a liability or potential liability to pay import duty required by or under these Regulations must—

(a) guarantee the payment of the specified amount in respect of a liability to which the guarantee applies within the applicable period required for discharge of the liability provided by regulation 43;

(b) be in a form specified in a notice published by HMRC; and

(2) HMRC may require that a guarantee extends to the payment of any charges in relation to the specified amount.

(3) HMRC must publish a notice specifying the forms of guarantee that may be approved.

(4) A guarantor may cancel a guarantee by notice to HMRC specifying the date on which the guarantee will cease to have effect which must be at least 15 days after the date on which the notice is received by HMRC.

Guarantors

96

(1) A guarantor must be—

(a) approved by HMRC; or

(b) a guaranteeing association.

(2) An applicant for approval to act as a guarantor must be established in the United Kingdom.

(3) A guarantor may only guarantee the liability to import duty of another person.

(4) If a guarantor's approval is revoked, HMRC must give notice of the revocation to any person whose payment in relation to a liability or potential liability to pay import duty is guaranteed by that guarantor.

(5) HMRC may publish a notice specifying persons treated as approved as a guarantor under this regulation.

Single and comprehensive guarantees

97

(1) In respect of a liability or potential liability to import duty—

(a) a guarantee (a “single guarantee”) may be given in respect of particular goods declared for a Customs procedure, or

(b) a comprehensive guarantee may be given in respect of all goods declared for special Customs procedures in one or more calendar months.

(2) A comprehensive guarantee extends also to any liability or potential liability to import duty in respect of any goods declared for the free-circulation procedure in a calendar month to which the guarantee relates.

(3) A person may give a comprehensive guarantee in respect of a liability to import duty only if authorised to do so by HMRC.

(4) Subject to paragraph (6) A person may only be authorised to give a comprehensive guarantee if—

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

(b) the person, and any directors or senior employees of that person, have not been involved in a breach of an obligation relating to tax or a Customs obligation, which in the opinion of an HMRC officer is—

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

(ii) relevant to the suitability of that person to give a comprehensive guarantee;

(c) the person, and any directors or senior employees of that person, have no 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 that person to give a comprehensive guarantee; and

(d) the person is—

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) in the opinion of an HMRC officer, a suitable person to give a comprehensive guarantee taking account of that person's financial standing and practical experience; or

(iii) approved as an operator of a temporary storage facility.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) A person may be authorised to give a comprehensive guarantee, even if the person does not meet the eligibility criteria in paragraph (4)(b) to (d), if the person only intends to give a comprehensive guarantee for the purposes of regulation 31(2)(c), 37(3)(b) or 43(3)(b), or paragraph 15(5) of Schedule 4 to the Act.

(7) An authorisation given under paragraph (6) is subject to the condition that the person may only give a comprehensive guarantee for the purposes specified in paragraph (6).

Specified amount

98

(1) Subject to paragraph (1A) the specified amount is—

(a) in relation to a single guarantee, the maximum amount of import duty that is likely to be payable in respect of the particular goods declared for a Customs procedure; or

(b) in relation to a comprehensive guarantee, the maximum amount of import duty and duty under section 30C of the Act that is likely to be payable in any calendar month for which the guarantee subsists, having regard to the business of the person authorised to give the guarantee, in particular in relation to goods imported into the United Kingdom and goods removed from Northern Ireland to Great Britain in the previous 12 months and proposed importations and removals from Northern Ireland to Great Britain in the next 12 months.

(1A) Other than in relation to a guarantee given in accordance with paragraph 17(5B) of Schedule 1 to the Act, where a person is approved to defer payment of liability to import duty under regulation 43(5) or (8) the specified amount is reduced by the amount of liability to import duty to which the approval relates.

(1B) In paragraph (1A) reference to duty to which the approval relates has the same meaning as in regulation 43(15)(b).

(2) ... If the amount of the liability or potential liability to import duty or duty under section 30C of the Act exceeds the specified amount of the guarantee, the person liable or potentially liable to that import duty or duty under section 30C of the Act must notify HMRC as soon as practicable on becoming aware of the shortfall.

(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) HMRC may by notice to the person required to give the guarantee in respect of a liability to import duty, amend the specified amount with effect from a date specified in the notice but not less than 15 days from the date the notice is given.

Specified amount: reduced amounts and waivers in relation to comprehensive guarantees

99

(1) Subject to paragraph (1A) HMRC must approve a reduction in the specified amount in relation to a comprehensive guarantee to 50% of the amount determined under regulation 98(1)(b) if satisfied that the person authorised to give the comprehensive guarantee—

(a) draws up accounts in accordance with generally accepted accounting practice;

(b) maintains reliable business records;

(d) has in the preceding three years discharged any liability to pay—

(i) import duty and duty charged under section 30C of the Act; and

(ii) EU customs duty under the EU Customs Code as it had effect before IP completion day; and

(e) has sufficient financial resources to meet the liability or potential liability not guaranteed by the reduced comprehensive guarantee.

(1A) HMRC must not approve a reduction in the specified amount under paragraph (1) unless—

(a) the person, and any directors or senior employees of that person, have not been involved in a breach of an obligation relating to tax or a Customs obligation, which in the opinion of an HMRC officer is—

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

(ii) relevant to the suitability of that person to give a reduced comprehensive guarantee;

(b) the person, and any directors or senior employees of that person, have no 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 that person to give a reduced comprehensive guarantee; and

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) in the opinion of an HMRC officer, a suitable person to give a reduced comprehensive guarantee taking account of that person’s financial standing and practical experience; or

(iii) approved as an operator of a temporary storage facility.

(1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) HMRC must approve a reduction in the specified amount in relation to a comprehensive guarantee to 30% of the amount determined under regulation 98(1)(b) if satisfied that the person authorised to give the comprehensive guarantee—

(a) meets the conditions in—

(i) paragraph (1); and

(ii) paragraph (1A); and

(b) maintains procedures to ensure that HMRC are notified of any breach of any Customs obligation.

(3) HMRC must approve a waiver to the requirement for a comprehensive guarantee in relation to a potential liability to pay import duty or duty charged under section 30C of the Act if satisfied that the person authorised to give the comprehensive guarantee—

(a) meets the conditions in—

(i) paragraphs (1) and (2)(b); and

(ii) paragraph (1A);

(b) allows HMRC officers access to all electronic and physical information systems maintained by that person;

(d) where the liability relates to agricultural goods, has satisfactory procedures to ensure compliance with any relevant regulatory obligation in relation to agricultural goods;

(e) has satisfactory procedures in relation to archiving records; and

(f) maintains satisfactory computer system security measures.

(4) A person authorised as an authorised economic operator is treated as meeting the conditions in paragraphs (2)(a)(i) and (b) and (3)(a)(i) and (b) to (f).

(5) In this regulation, “generally accepted accounting practice” has the meaning given in section 1127 of the Corporation Tax Act 2010 .

Discharge of guarantees

100

(1) A guarantee is regarded as discharged in full—

(a) if all the liability to which the guarantee relates and, where regulation 95(2) (guarantee in relation to charges) applies, any charges in relation to that liability, is paid in full;

(b) where the potential liability to which the guarantee relates has been extinguished on the discharge of a special Customs procedure;

(i) an application for remission of the duty in respect of the liability covered by the guarantee is made where regulation 48 (incorrect amount of import duty), 50 (lower rate of import duty available), 51 (defective and non-compliant chargeable goods) or 52 (just and equitable reduction) applies;

(ii) the goods in relation to which the duty has arisen have been released to the free-circulation procedure; and

(iii) in the opinion of an HMRC officer the requirement of a guarantee would be likely to cause serious economic or social difficulties to the person required to give the guarantee; or

(d) where the potential liability to which the guarantee relates has been extinguished on the transfer of rights and obligations under regulation 42 (transfer of rights and obligations) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 .

(2) A person required to give a guarantee or a guarantor may apply to HMRC to discharge a guarantee in part where part of the liability to import duty to which the guarantee relates and, where regulation 95(2) applies, any charges, have been discharged.

(3) An application under paragraph (2) must state—

(a) the goods to which the application relates;

(b) the amount of the liability to import duty;

(d) the location of the goods.

(4) An application must—

(a) include details identifying the applicant;

(b) be made to the place;

(d) be accompanied by such information,

as specified in a notice published by HMRC.

(5) HMRC must publish a notice specifying the matters referred to in paragraph (4).

(6) By no later than 30 days after the date on which an application is received by HMRC, HMRC must notify the applicant that the application—

(a) is accepted and the guarantee is discharged in part, specifying the amount of the liability discharged and the goods in respect of which the liability relates; or

(b) is rejected for the reasons set out in the notification.

(7) If an acceptance or rejection is not made as required by paragraph (6), the application is deemed to be rejected.

(8) Where a guarantee is provided by a guaranteeing association, Article 6(3) and (4) of the ATA Convention, Article 8(3), (4) and (5) of Annex A of the Istanbul Convention or Article 10(2) of the TIR Convention, as the case may be, apply to determine the circumstances in which the guarantee is to be regarded as discharged.

Cases where no guarantee is required

101

(1) Notwithstanding any provision in these Regulations to the contrary, but subject to paragraph (1A), a person is not required to give a guarantee in respect of a liability to pay import duty if—

(a) the person liable is a public authority or universal service provider and the liability or potential liability arose in the course of carrying out the duties or functions of that authority or provider;

(b) the liability relates to goods imported into the United Kingdom via a pipe-line;

(c) the liability relates to goods subject to an inward processing procedure where regulation 21(2) (authorisation to declare goods for an inward processing procedure) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 applies;

(d) the liability relates to goods subject to an outward processing procedure where regulation 28(6) (authorisation to declare goods for an outward processing procedure) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 does not apply;

(e) the liability relates to goods declared for a temporary admission procedure and—

(i) the declaration is made under regulation 20, 21, 27, 27A, 27B , 27C , 27D or 27E (Customs declarations made orally or by conduct: certain goods);

(ii) the goods comprise empty packaging and are not intended for sale;

(iii) the goods are used for transportation of imported goods and have permanent, indelible markings identifying that use; or

(iv) the goods have previously been discharged from a temporary admission procedure.

(1A) Paragraph (1) does not apply to a guarantee given in accordance with paragraph 17(5B) of Schedule 1 to the Act.

(2) For the purposes of this regulation—

“pipe-line” has the meaning given in section 1 of CEMA 1979;

“public authority” means a public authority as defined by the Freedom of Information Act 2000 or a Scottish public authority as defined by the Freedom of Information (Scotland) Act 2002;

PART 11 — Domestic goods

Retention of domestic status

102

(1) Goods exported from the United Kingdom as a result of their removal from Great Britain in accordance with the applicable export provisions retain their status as domestic goods if the goods—

(a) merely pass through places outside Great Britain before arriving at their ultimate destination in Great Britain, ...

(b) are itemised in a travel document issued in Great Britain which specifies the destination of the goods, and

(2) An “exit summary declaration” has the same meaning as it has in Article 5(10) of the UCC.

Goods presumed not to be domestic goods

103

(1) Goods to which this paragraph applies are presumed not to be domestic goods unless the contrary is shown.

(2) Paragraph (1) applies to—

(a) goods that are in Great Britain because they have been imported; and

(b) goods that have been removed from a free zone otherwise than in accordance with regulation 18F of the special procedures regulations.

Goods not regarded as domestic goods: animals

104

(1) For the purposes of Part 1 of the Act, an animal born in Great Britain is not to be regarded as a domestic good if—

(a) the mother was part of a consignment of goods declared for a storage procedure , a temporary admission procedure or an inward processing procedure ; and

(b) the animal was born before the procedure was discharged; and

(c) the total market value of animals born to mothers in that consignment before the procedure was discharged is £90 or more (“the threshold”).

(2) An animal which is not to be regarded as a domestic good under paragraph (1) is treated as imported into the United Kingdom at the later of—

(a) the date the threshold in paragraph (1)(c) is reached; and

(b) the date the animal is born.

(3) A notification of importation is treated as having been given in relation to an animal not regarded as a domestic good under paragraph (1) on the date the animal is treated as imported under paragraph (2).

Goods regarded as domestic goods: fish

105

(1) For the purposes of Part 1 of the Act, catch are to be regarded as domestic goods if caught by a British ship whilst fishing beyond territorial waters of a country or territory other than the United Kingdom and are brought to Great Britain—

(a) directly by that or another ship; or

(b) after merely landing at a port outside Great Britain and the catch are itemised in a travel document issued at that port by the person responsible for the carriage of the catch which specifies the destination and recipients of the catch.

(2) For the purposes of Part 1 of the Act, where a catch caught by a British ship whilst fishing beyond territorial waters of a country or territory other than the United Kingdom is processed on a factory ship which is a British ship operating beyond the territorial waters of a country or territory other than the United Kingdom, goods which are the products of the catch processed are to be regarded as domestic goods if brought to Great Britain—

(a) directly by that or another ship; or

(b) after merely landing at a port outside Great Britain and the goods are itemised in a travel document issued at that port by the person responsible for the carriage of the goods which specifies the destination and recipients of the goods in Great Britain.

(3) In this regulation—

“British ship” has the meaning given in section 1 of the Merchant Shipping Act 1995 ;

“catch” means fish or any other aquatic life which is commonly fished or obtained in maritime waters or on the seabed;

“factory ship” means a vessel providing processing services for the fishing industry.

Evidence that goods are domestic goods

106

HMRC must publish a notice specifying the evidence which is to be required, or is to be sufficient, for the purpose of showing that goods are domestic goods.

PART 12 — Valuation of chargeable goods

CHAPTER 1 — Preliminary

Interpretation

107

(1) In this Part—

“buying commission” means a commission paid by a buyer of goods to an agent of the buyer in respect of services provided by the agent to the buyer to enable the buyer to import chargeable goods;

“comparable goods” has the meaning given by regulation 127(1);

“full value” means the total amount which would be payable in an arm's length transaction for, or in connection with the importation of, goods;

“identical goods” has the meaning given by regulation 127(1);

“Method” means a method of valuation set out in chapter 5 of this Part; and “Method N valuation”, where N is a whole number between 1 and 6, is a Method so numbered;

“related persons” has the meaning given by regulation 128;

“similar goods” has the meaning given by regulation 127(1);

“specified matters” has the meaning given by regulation 108(7) in respect of items to be included as elements of a transaction value and by regulation 108(8) in respect of items to be excluded as elements of a transaction value;

“time the goods are imported” is to be construed in accordance with section 5 of CEMA 1979 .

(2) In chapters 2 to 5 of this Part in relation to a transaction value of goods, “seller” means the person who in the transaction sells the goods for export to the United Kingdom and “buyer” means the person who in the transaction buys the goods from the seller.

CHAPTER 2 — Use of Methods of valuation

Use of Methods of valuation

108

(1) To determine the value of chargeable goods presented to Customs on import which value is to be included in the Customs declaration, follow steps 1 and 2.

(2) Step 1: apply in the following sequence—

(a) Method 1 valuation;

(b) Method 2 valuation; and

until a Method is found by which the full value of the goods can be readily determined and if none is found, proceed to step 2.

(3) Step 2: apply in the following sequence—

(a) Method 4 valuation then Method 5 valuation, or in reverse order as the person who makes the Customs declaration elects; and

(b) Method 6 valuation,

until the full value of the goods can be readily determined.

(4) But steps 1 and 2 are subject to regulation 109.

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