EXPLANATORY NOTE
These Regulations prescribe the procedures governing the operation of free zones in the United Kingdom.
In relation to such zones, the Regulations—
(i)allow obligations for security to be placed on responsible authorities;
(ii)provide for the receipt of goods and, where appropriate, the discharge of existing procedures and the establishment of Community status;
(iii)prescribe the scope of permitted operations and the related control requirements;
(iv)provide for the payment of customs duty and agricultural levy and for the delivery of goods from free zones;
(v)define the control requirements placed upon free zone traders and responsible authorities;
(vi)provide for the application of value added tax on delivery of any goods manufactured in free zones, whether or not made from imported components.
The Regulations do not affect the control of goods in the course of movement to and from free zones.