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

PART 15 Transitional and savings provisions

CHAPTER 1 Preliminary

Interpretation

143.  In this Part, the following expressions(1) have the same meaning as they do for the purposes of the UCC—

“Common Customs Tariff”(2);

“customs procedure”, and “accepted”, “discharged” and “released” and cognate expressions as used in relation to a customs procedure(3);

“customs declaration”, except where reference is made to such a declaration provided by or under the Act;

“customs supervision”;

“customs territory of the Union”;

“decision taken upon application”(4);

“non-Union goods”;

“special procedure” and the following types of special procedure: “end-use procedure”, “outward processing procedure”, “storage procedure” and “transit procedure”(5);

“temporary storage”;

“temporary storage declaration”, except where reference is made to a such declaration provided under the Act;

“temporary storage facility”(6);

“Union goods”; and

“verification”(7).

CHAPTER 2 Continued effect and cessation of effect of the EUCL and evidence

Continued effect and cessation of effect of the EUCL

144.—(1) Where as provided by this Part the EUCL continues to have effect in relation to goods on and after exit day, paragraph (2) applies to the following matters—

(a) any approval or authorisation granted by, or on behalf of, HMRC or the equivalent competent authority of a member State under the EUCL or treated as valid immediately before exit day under Article 251 of the Delegated Regulation;

(b) a decision given by HMRC which is a decision taken upon application;

(c) any rates of currency exchange published by HMRC; or

(d) any guarantee provided in respect of any requirement under the EUCL.

(2) Any of the matters listed in paragraph (1) which applies in relation to the goods immediately before exit day continues to apply for so long as the EUCL continues to have effect in relation to the goods, unless and until HMRC amends or revokes the same in any particular case.

(3) For the purposes of the continued effect of the EUCL in relation to goods as provided by this Part, the following modifications of the EUCL apply—

(a) non-Union goods are to be treated as goods in respect of which—

(i) a liability to import duty under the Act may be incurred as if they were chargeable goods(8);

(ii) circumstances under the EUCL in which a liability to an EU customs duty applies to non-Union goods on import are to be treated as circumstances in which a liability to import duty under the Act is incurred;

(iii) except as provided by regulation 150(3), the rate of duty applicable to the goods is that determined by the Common Customs Tariff; and

(b) any reference in the EUCL to a relief from liability to an EU customs duty on import in respect of non-Union goods is to be treated as a relief from liability to import duty under the Act(9) in respect of such goods.

(4) Except for those modifications, the continuation or cessation of effect of the EUCL in relation to goods as provided by this Part does not—

(a) affect the operation of the EUCL or anything duly done or suffered under it;

(b) affect any right, privilege, obligation or liability acquired, accrued or incurred under the EUCL or any enactment in relation to the EUCL;

(c) affect any penalty, forfeiture or punishment incurred in respect of any offence under an enactment in relation to the EUCL; or

(d) affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment.

(5) Notwithstanding that the EUCL ceases to have effect in relation to goods, any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture or punishment may be imposed, as if the EUCL had not ceased to have effect in relation to the goods.

(6) When the EUCL ceases to have effect in relation to goods as provided by this Part, the Act and paragraphs (7) and (8) then apply in relation to the goods.

(7) The goods are to be treated as chargeable goods imported into the United Kingdom, except where the goods are located outside of the United Kingdom other than in accordance with a customs procedure when the EUCL ceases to have effect.

(8) Where a requirement of the EUCL has been met or not met in relation to the goods, any equivalent requirement imposed by or under the Act is also to be treated as having been met or not met, as the case may be, in relation to the goods.

(9) Where the EUCL continues to have effect in relation to goods on or after exit day by virtue of this Part, the cessation of effect of the EUCL provided by paragraph 1(1) of Schedule 7 to the Act which would otherwise apply in relation to the goods does not apply.

Evidence required by notice

145.—(1) HMRC may notify a person to provide evidence to HMRC concerning any of the following in relation to goods to which this Part applies—

(a) whether or not the goods are non-Union goods;

(b) when the goods are imported into the United Kingdom;

(c) which customs procedure applies to the goods;

(d) the stage of a customs procedure reached in relation to the goods; or

(e) any other matter which enables HMRC to determine whether or not the EUCL continues or ceases to have effect in relation to the goods on or after exit day.

(2) HMRC must in, or with, the notification state by when compliance is required.

(3) HMRC may publish a notice specifying—

(a) the type of evidence which may be required when a notification is given; and

(b) the form and manner in which evidence is to be provided to HMRC.

CHAPTER 3 Non-Union goods imported before exit day

Transitional and saving provision under chapter 3

146.—(1) This chapter applies in relation to goods which—

(a) have been imported into the United Kingdom before exit day; and

(b) are non-Union goods.

(2) Where under this chapter the EUCL continues to have effect in relation to the goods, the EUCL ceases to have effect in relation to the goods as provided by chapter 5, except as provided by regulation 147(2).

(3) For the purposes of paragraph (1)(a), where goods form part of a consignment and only part of the consignment is imported before exit day, all of the goods in the consignment are to be treated as imported before exit day.

Goods notified as arriving on or after exit day

147.—(1) Where notification of the arrival of the goods is made to HMRC on or after exit day, the EUCL continues to have effect in relation to the goods on and after exit day.

(2) The EUCL ceases to have effect in relation to the goods when a customs declaration or a temporary storage declaration is made in respect of the goods and the declaration made is to be treated as the equivalent declaration provided by or under the Act.

Goods held in a temporary storage facility

148.—(1) Where the goods are held in a temporary storage facility as a requirement of temporary storage immediately before exit day, subject to paragraph (2), the EUCL continues to have effect in relation to the goods on and after exit day.

(2) But on and after exit day, Article 148(5) of the UCC applies only in respect of temporary storage facilities in the United Kingdom.

Goods declared to a customs procedure

149.—(1) Paragraph (2) applies where before exit day a declaration is made to HMRC in respect of the goods to a customs procedure and—

(a) before exit day the declaration has not been accepted by HMRC; or

(b) if the declaration has been accepted before exit day, the goods have not been released before exit day by HMRC to the procedure.

(2) The EUCL continues to have effect in relation to the goods on and after exit day.

Goods located in the United Kingdom released to a special procedure

150.—(1) Paragraph (2) applies where before exit day a declaration is made to HMRC in respect of the goods to a special procedure, except the end-use procedure, and—

(a) before exit day the goods—

(i) are released by HMRC to the procedure; but

(ii) are not discharged by HMRC from the procedure; and

(b) immediately before exit day, the goods are located in the United Kingdom.

(2) The EUCL continues to have effect in relation to the goods on and after exit day.

(3) But where—

(a) there is a breach of the procedure on or after exit day;

(b) the procedure is not discharged; and

(c) a liability to import duty is treated as incurred in respect of the goods in consequence of the breach,

the rate of duty is to be determined by reference to the customs tariff as it applies under the Act at the time of the breach.

CHAPTER 4 Transit, outward processing and end-use procedures

Transit procedure

151.  Where Union goods have been imported into the United Kingdom before exit day and are subject to the transit procedure, the EUCL continues to have effect in relation to the goods on and after exit day.

Outward processing procedure

152.—(1) Paragraph (2) applies where before exit day—

(a) a declaration is made to HMRC in respect of Union goods to the outward processing procedure; and

(b) the goods have not been discharged from the procedure.

(2) The EUCL continues to have effect in relation to the goods on and after exit day.

End-use procedure

153.—(1) Paragraph (2) applies where—

(a) before exit day—

(i) a declaration is made to HMRC in respect of non-Union goods to the end-use procedure; and

(ii) the goods are released by HMRC to the procedure; and

(b) immediately before exit day the goods are Union goods but subject to customs supervision.

(2) The EUCL continues to have effect in relation to the goods on and after exit day.

Cessation of the EUCL

154.  The continued effect of the EUCL in relation to goods as provided by this chapter ceases to have effect in relation to the goods as provided by chapter 5.

CHAPTER 5 Cessation of effect of the EUCL

Cessation of effect of the EUCL

155.—(1) Paragraph (2) applies where, as provided by chapter 3 or 4, the EUCL continues to have effect in relation to goods on and after exit day.

(2) Except as provided by regulation 147(2), the EUCL ceases to have effect in relation to the goods on the earliest to occur of the following—

(a) where a person fails to comply with regulation 145 in relation to the goods;

(b) except in relation to goods to which regulation 152 applies, on the removal of the goods from the United Kingdom;

(c) where the goods are subject to temporary storage or a special procedure, when a customs declaration is made in respect of the goods;

(d) except where regulation 153(2) applies, on release of the goods for free circulation;

(e) where regulation 153(2) applies, when—

(i) the goods are destroyed or forfeited; or

(ii) customs supervision of the goods ends by reason that a case set out in Article 254(4)(a) or (c) of the UCC applies;

(f) where the goods are subject to a special procedure except a storage procedure, on 29th March 2020; or

(g) where the goods are subject to a storage procedure, on the goods being discharged from the procedure.

(3) Where paragraph (2)(a) applies, the Customs procedure provided by or under the Act applies which is equivalent to the customs procedure which applied when the EUCL ceased to have effect.

(4) Where paragraph (2)(c) applies, the declaration made is to be treated as the equivalent declaration provided by or under the Act.

(5) Where paragraph (2)(f) applies—

(a) the goods become subject to the special Customs procedure(10) or outward processing procedure provided by or under the Act which is equivalent to the customs procedure which applied to the goods immediately before the EUCL ceased to have effect in relation to the goods; and

(b) any approval or authorisation granted on or after exit day in relation to the procedure which existed immediately before the EUCL ceased to have effect in relation to the goods is to be treated as an approval or authorisation which has effect for the equivalent procedure provided by or under the Act.

CHAPTER 6 Special procedures: additional provision

Goods located outside the United Kingdom

156.—(1) Paragraph (2) applies in relation to non-Union goods imported into the United Kingdom where—

(a) before exit day—

(i) a declaration is made to HMRC in respect of the goods to a special procedure and the goods are released by HMRC to the procedure but are not discharged by HMRC from the procedure; or

(ii) a declaration is made to a customs authority outside the United Kingdom in respect of the goods to the transit procedure and the goods are being moved, in accordance with the procedure, to the United Kingdom; and

(b) immediately before exit day, the goods are located outside the United Kingdom in accordance with the procedure.

(2) The EUCL continues to have effect in relation to the goods on and after exit day.

(3) Where paragraph (2) applies, the EUCL ceases to have effect in relation to the goods on the earliest to occur of the following—

(a) where a person fails to comply with regulation 145 in relation to the goods;

(b) except where paragraph (1)(a)(ii) applies, if the goods are not returned to the United Kingdom before 29th March 2020;

(c) when a further customs declaration to a special procedure is made to HMRC in respect of the goods; or

(d) on release of the goods for free circulation.

(4) Where paragraph (3)(a) applies, the Customs procedure provided by or under the Act applies which is equivalent to the customs procedure which applied when the EUCL ceased to have effect in relation to the goods.

(5) Where paragraph (3)(b) applies, the customs procedure is to be treated as discharged when the EUCL ceases to have effect in relation to the goods.

(6) Where paragraph (3)(c) applies, the declaration made is to be treated as the equivalent declaration provided by or under the Act.

Goods discharged from a customs procedure

157.—(1) Where before exit day non-Union goods are discharged from a customs procedure but verification in relation to the goods is not completed, the EUCL continues to have effect in relation to the goods on and after exit day.

(2) The EUCL ceases to have effect in relation to the goods on the earliest to occur of the following—

(a) where a person fails to comply with regulation 145 in relation to the goods;

(b) on completion of the verification; or

(c) on 29th March 2020.

(3) Where paragraph (2)(a) or (c) applies, the following apply in relation to the goods—

(a) paragraphs 13 and 14 of Schedule 1 to the Act(11); and

(b) paragraph 4 of Schedule 6 to the Act(12).

CHAPTER 7 Union goods imported

Union goods: movement beginning before exit day

158.—(1) This chapter applies to goods which immediately before exit day are Union goods and where—

(a) before exit day, the goods are located in the customs territory of the Union except the United Kingdom;

(b) the person (“P”) who owns, controls or possesses the goods intends the goods to be moved—

(i) to the United Kingdom as the final place of destination of the goods; or

(ii) through the United Kingdom to a place of destination elsewhere; and

(c) before exit day P causes the goods to commence their movement from the customs territory of the Union to the United Kingdom.

(2) Except in relation to goods to which paragraph (4) applies, the goods commence their movement to the United Kingdom—

(a) in a case where P, or another person on behalf of P, brings the goods to the United Kingdom, when P or that person collects the goods in order to bring them to the United Kingdom; or

(b) in any other case, when P despatches the goods to the United Kingdom.

(3) Paragraph (4) applies—

(a) to goods which are non-commercial goods or personal gifts; and

(b) where an individual brings the goods to the United Kingdom contained in the individual’s accompanied baggage or by the goods being worn by the individual.

(4) The goods commence their movement to the United Kingdom when the aircraft, train or vessel on which P is to bring the goods to the United Kingdom is scheduled to depart for the United Kingdom.

(5) For the purposes of this regulation, it does not matter that in the course of the movement of goods from the customs territory of the Union that the goods may move temporarily outside the customs territory before their arrival in the United Kingdom, so long as that movement occurs without the goods being required to be subject to a customs procedure.

(6) But this chapter does not apply to Union goods to which chapter 4 applies.

Continued effect of the EUCL

159.  The EUCL continues to have effect on and after exit day in relation to the goods to which this chapter applies but the presumption in Article 153(1) of the UCC does not apply in relation to the goods.

Requirement to provide evidence of import of Union goods

160.—(1) Subject to regulation 161, on and after exit day HMRC may notify any person who imports goods and claims the goods are those to which this chapter applies to provide evidence to HMRC concerning any of the following—

(a) whether or not the goods are Union goods;

(b) when the goods are imported into the United Kingdom;

(c) the place from which, or when, the goods commenced their movement to the United Kingdom; or

(d) any other matter which enables HMRC to determine whether or not the EUCL has effect in relation to the goods on or after exit day.

(2) HMRC must in, or with, the notification state by when compliance is required.

(3) HMRC may publish a notice specifying—

(a) the type of evidence which may be required when a notification is given; and

(b) the form and manner in which evidence is to be provided to HMRC.

(4) Where a person fails to provide evidence in relation to goods as required by this regulation, the EUCL ceases to have effect in relation to the goods.

Exceptions to the requirement to provide evidence of import of Union goods

161.—(1) The requirement in regulation 160(1) to provide evidence does not apply in the following cases.

(2) Case 1 is where the goods—

(a) are imported into the United Kingdom by aircraft;

(b) the aircraft departed for the United Kingdom from an airport within the customs territory of the Union except the United Kingdom;

(c) the scheduled departure time for the aircraft was before exit day; and

(d) the carriage of the goods is made under cover of a single transport document.

(3) “Single transport document” means a document which—

(a) is issued by the carrier of the goods in the place in the customs territory of the Union from which the aircraft departed;

(b) is provided to the sender of the goods;

(c) identifies the goods to which it applies;

(d) contains or records a contractual obligation to transport the goods to a destination named in the document; and

(e) lists the persons entitled to receive the goods.

(4) Case 2 is where goods—

(a) are imported into the United Kingdom by ship;

(b) the ship departed for the United Kingdom from a port within the customs territory of the Union except the United Kingdom;

(c) the scheduled departure time for the ship was before exit day; and

(d) the operator of the ship is authorised by a customs authority in the customs territory of the Union to transport Union goods by the ship within the customs territory, or temporarily outside it, without the goods being transported ceasing to be Union goods.

(5) Cases 1 and 2 apply to goods whether or not they originate from the place in the customs territory of the Union from which the aircraft or ship, as the case may be, departed.

(1)

The expressions are found in Article 5 of the UCC except where otherwise indicated.

(2)

See also Article 56 of the UCC.

(3)

The customs procedures are the release for free circulation procedure and the types of special procedure.

(4)

See Article 22 of the UCC.

(5)

See also Title VII of the UCC concerning special procedures.

(6)

See Articles 147 and 148 of the UCC.

(7)

See Article 188 of the UCC.

(8)

“Chargeable goods” is defined in section 2 of the Act.

(9)

See section 19 of the Act concerning a relief from a liability to import duty.

(10)

“Special Customs procedure” is defined in section 3(4) of the Act.

(11)

Paragraphs 13 and 14 of Schedule 1 to the Act concern the verification of Customs declarations.

(12)

Paragraph 4 of Schedule 6 to the Act concerns the period before the end of which a notification of a liability to pay import duty must be given.