The Export Refunds (Administrative Penalties) (Rate of Interest) Regulations 1995

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which apply throughout the United Kingdom, come into force on 1st December 1995. Regulation 2 specifies the rate of interest to be applied in the calculation of any interest payable pursuant to article 11 of Commission Regulation (EEC) No. 3665/87 laying down common detailed rules for the application of the system of export refunds on agricultural products, which was amended as regards the recovery of amounts unduly paid and sanctions by Commission Regulation (EC) No. 2945/94.

Article 11 provides for the payment of interest—

(a) on the amount payable in certain circumstances by an exporter who has requested a refund in excess of that applicable (article 11(1)); and

(b) on the amount to be reimbursed by an exporter to whom an export refund has been unduly paid (article 11(3)).

The rate of interest so specified is one percentage point above the sterling three month London interbank offered rate.

There are two periods specified in article 11 in respect of which interest must be charged—

(1) in the case of interest payable under article 11(1), the period beginning 30 days after the date of receipt of the payment demand and ending on the day preceding the date of payment; and

(2) in the case of interest payable under article 11(3), the period between the date of payment of the export refund and the date of reimbursement.

No compliance cost assessment has been prepared.