The Customs Transit Procedures (EU Exit) Regulations 2018

Regulation 4

SCHEDULE 3 The United Kingdom transit procedure

PART 1 General provision for the United Kingdom transit procedure

General

1.  This Schedule provides for chargeable goods to move between places in the United Kingdom subject to transit procedure for the purposes of TCTA, section 3(4)(b) and Schedule 2, Part 3 (the “UK transit procedure”), and without payment of import duty while subject to the procedure.

2.  For these purposes—

(a) “authorised consignor” is subject to provision corresponding to Schedule 1, paragraphs 18(1) to (4) (excluding references to sub-paragraphs (5), (7) and (8)), but in relation to the UK transit procedure;

(b) “authorised consignee” is subject to provision corresponding to Schedule 1, paragraphs 18(1) to (3) (excluding references to sub-paragraphs (4), (5) and (7)), and 18(8), but in relation to the UK transit procedure;

(c) seals of a special type are subject to provision corresponding to Schedule 1, paragraphs 18(1) to (3) (excluding the references to sub-paragraphs (4), (5) and (8)), and 18(7), but in relation to the UK transit procedure;

(d) the use by a person of electronic transport documents as customs declarations are subject to provision corresponding to Schedule 1, paragraphs 18(1) to (3) (excluding references to sub-paragraphs (4), (7) and (8)), and 18(5) and 18(6)(b) and (c), but in relation to the UK transit procedure;

(e) the “holder” of the UK transit procedure is the person who declares the goods in question for that procedure, or on whose behalf the declaration is made.

3.  In this Schedule—

(a) a “customs office of departure” is the HMRC office in the United Kingdom where the Customs declaration for the UK transit procedure is accepted by HMRC;

(b) a “customs office of destination” is the HMRC office in the United Kingdom where the goods subject to the UK transit procedure are presented to HMRC preliminary to ending that procedure.

PART 2 Operation of the UK transit procedure

Formalities for the UK transit procedure

4.—(1) Use of the UK transit procedure for chargeable goods is subject to a Customs declaration made for this purpose and accepted by HMRC, and to the provision of a guarantee pursuant to regulations under TCTA, section 20(c) and Schedule 6, paragraphs 6 to 9.

But provision corresponding to that made by Schedule 1, paragraph 64(9)(a) applies in relation to paragraph 2(d) for the purposes of the UK transit procedure.

(2) The goods covered by the declaration must be presented to HMRC at the customs office of departure unless the declarant is an authorised consignor within paragraph 2(a).

(3) The UK transit procedure is compulsory where chargeable goods bound for a place in the United Kingdom, and to be carried by air, are loaded or reloaded at a United Kingdom airport.

(4) Provision corresponding to that made by Schedule 1, paragraph 19 (except sub-paragraph (1), second indent) applies to the declaration for the UK transit procedure (permissible goods).

5.—(1) Provision corresponding to that made by Schedule 1, paragraphs 20(1), 20(3) and 20(4) applies for the purposes of the UK transit procedure (disregarding anything said about the “electronic transit system”).

(2) Provision corresponding to that made by Schedule 1, paragraphs 21(1), 22, 23(1) to (5), 24 and 40 applies for the purposes of the UK transit procedure.

(3) Provision corresponding to that made by Schedule 1, paragraphs 25(1) and 25(4) to (7) applies for the purposes of the UK transit procedure.

6.  Provision corresponding to that made by Schedule 1, paragraph 26 applies for the purposes of the UK transit procedure.

Operation of the UK transit procedure

7.  Provision corresponding to that made by Schedule 1, paragraph 28(1), and (3) to (7), applies for the purposes of the UK transit procedure, except that in this Schedule, the “carrier” is the person responsible for the carriage of the goods within the United Kingdom.

End of the UK transit procedure

8.—(1) Provision corresponding to that made by Schedule 1, paragraphs 29(1)(a) and (b), 29(3), 29(4), 29(6) and 29(7) applies for the purposes of the UK transit procedure, with the following modifications—

(a) in paragraph 29(1)(a) disregard what is said about other customs authorities,

(b) in paragraph 29(3) disregard what is said about customs authorities other than HMRC, or about the operator of a fixed transport installation,

(c) in paragraph 29(4) disregard what is said about the obligation of the holder being met and the cases in sub-paragraphs (5) and (6),

(d) in paragraph 29(7) disregard what is said about a customs office of destination outside the United Kingdom.

(2) Provision corresponding to that made by Schedule 1, paragraphs 30(1) to (5), and 32, applies for the purposes of the UK transit procedure, with the following modifications—

(a) in paragraphs 30(1) and 30(2) disregard what is said about a customs authority other than HMRC,

(b) in paragraph 30(3) disregard what is said about HMRC having to notify the arrival and to amend their records.

(3) Provision corresponding to that made by Schedule 1, paragraphs 31(1), 31(4) and 31(5) applies for the purposes of the UK transit procedure, but disregard what is said in paragraph 31(4) about—

(a) the holder being deemed to fulfil the applicable obligations, and

(b) a person similarly authorised by a customs authority in another common transit state.

(4) Provision corresponding to that made by Schedule 1, paragraph 34(2) applies for the purposes of the UK transit procedure.

(5) Provision corresponding to that made by Schedule 1, paragraph 35(1)(b) to (d), and 35(2), applies for the purposes of the UK transit procedure, with the following modifications—

(a) in paragraph 35(1)(b) regard the customs authority as any other than HMRC,

(b) in paragraphs 35(1)(c) and (d) regard a “third country” as any country except the United Kingdom.

Discharge of the UK transit procedure

9.—(1) Provision corresponding to that made by Schedule 1, paragraph 38(1) and (3) applies for the purposes of the UK transit procedure, but disregard what is said in paragraph 38(1) about the customs authority outside the United Kingdom and the comparison of data available to HMRC and the customs office of destination, and disregard the second indents of paragraph 38(1) and (3).

(2) Sub-paragraph (4) applies where HMRC has not, within the time-limits in sub-paragraph (3), received information allowing discharge of the UK transit procedure.

(3) The time-limits are—

(a) nine days after the final day by which the goods and documents were to be presented to the customs office of destination pursuant to paragraph 8(1);

(b) twelve days after the final day by which the goods and documents were expected to be presented elsewhere pursuant to paragraph 8(3).

(4) HMRC may require from the holder of the UK transit procedure any information it deems relevant to that procedure or the goods in question.

(5) The holder must provide that information to HMRC no later than 28 days after the one on which the requirement was made.

10.—(1) Where a UK transit procedure has not been discharged, HMRC must—

(a) notify the guarantor for the guarantee in paragraph 4(1) that the procedure has not been discharged, and do so within nine months from the time-limit for presentation of the goods at the customs office of destination;

(b) notify the guarantor of a potential requirement to pay import duty for which that guarantor is liable in respect of that UK transit procedure, and do so within three years from the date the declaration for the UK transit procedure was accepted.

(2) The guarantor is released from the guarantee obligations if either of the notifications in sub-paragraph (1) has not been issued before the expiry of the time-limit.

Consequences of UK transit procedure discharge and liability to import duty

11.—(1) Provision corresponding to Schedule 1, paragraph 39 applies for the purposes of the UK transit procedure.

(2) Provision corresponding to Schedule 1, paragraph 59 applies for the purposes of the UK transit procedure, but disregard the reference to paragraph 4(4).

PART 3 General provision for the purposes of this Schedule

12.—(1) Provision corresponding to Schedule 1, paragraph 58(1)(a), (d), (e) and (f), and 58(2), applies for the purposes of this Schedule.

(2) A requirement for information under paragraph 9(4) has effect as if made under the Finance Act 1994, section 23 and to a person to whom that section applies.