The Customs Transit Procedures (EU Exit) Regulations 2018

PART 2 U.K. Operation of the UK transit procedure

Formalities for the UK transit procedure U.K.

4.—(1)  [F1 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—

(a) where there is any liability, or potential liability, to pay import duty, but not excise duty, in respect of the goods, in accordance with Part 10 of the import duty regulations; or

(b) where there is any liability, or potential liability, to pay both import duty and excise duty in respect of the goods, in accordance with Part 10 of the import duty regulations as modified by sub-paragraph (1C).]

But provision corresponding to that made by Schedule 1, paragraph [F2 29(1G)(a)] applies in relation to paragraph 2(d) for the purposes of the UK transit procedure.

[F3 (1A) The Customs declaration in sub-paragraph (1) is deemed as made and accepted where goods arrive in [F4 Great Britain] from the Isle of Man subject to a procedure corresponding in the Isle of Man to the UK transit procedure; and those goods are then chargeable goods.

(1B) For the purposes of sub-paragraph (1A), any function carried out by the Isle of Man customs authority pre-arrival, and corresponding to a pre-departure function of HMRC in relation to the UK transit procedure, substitutes for that pre-departure function.]

[F5 (1C) For the purposes of sub-paragraph (1)(b)—

(a) Part 10 of the import duty regulations is modified as follows—

(i) other than in regulation 97(2), for “import duty”, wherever it appears, regard as substituted “ import duty and excise duty ”;

(ii) in regulation 95(1)(a), regard “discharge of the liability” as “discharge of the liability to pay import duty”;

(iii) after regulation 100(1)(b), regard as inserted—

“(ba) where the goods have been placed under a duty suspension arrangement and—

(i) all the liability to import duty to which the guarantee relates and, where regulation 95(2) (guarantee in relation to charges) applies, any charges in relation to that liability have been paid in full; or

(ii) the potential liability to import duty to which the guarantee relates has been extinguished on the discharge of a special Customs procedure;”;

(iv) in regulation 100(1)(c)—

(aa) in paragraphs (i) and (ii), for “the duty” regard as substituted “ the import duty ”;

(bb) at the end of paragraph (ii), regard “and” as omitted;

(cc) at the end of paragraph (iii), for “or” regard as substituted “ and ” and regard as inserted—

“(iv) the part of the specified amount which is equivalent to the amount of the liability, or potential liability, to excise duty is paid in full or the goods to which that part relates have been placed in a duty suspension arrangement; or”; and

(b) a reference to a “guarantee” in the import duty regulations, wherever it appears, should be construed in accordance with the modifications made by paragraph (a).]

[F6 (2) Subject to sub-paragraph (2A), the goods covered by the declaration must be presented to HMRC at the Customs office of departure.

(2A) Sub-paragraph (2) does not apply where—

(a) the declarant is an authorised consignor; and

(b) the declaration is not made by means of a carnet under regulation 22(4A) (customs declarations made in paper form) of the Customs (Import Duty) (EU Exit) Regulations 2018.]

(3) The UK transit procedure is compulsory where chargeable goods bound for a place in [F7 Great Britain], and to be carried by air, are loaded or reloaded at a [F7 Great Britain] airport.

(4) [F8 Subject to sub-paragraph (4A), 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).

[F9 (4A) Sub-paragraph (4) does not apply where the declaration is made by means of a carnet under regulation 22(4A) (customs declarations made in paper form) of the Customs (Import Duty) (EU Exit) Regulations 2018.]

[F10 (5) Use of the UK transit procedure for chargeable goods that are to move from [F11 Great Britain] to the Isle of Man is subject to a declaration made for this purpose and accepted by HMRC, and to the provision of a guarantee as provided for in sub-paragraph (1), first and second indents.

(6) The declaration in sub-paragraph (5) is deemed to be within TCTA, Schedule 2, paragraph 5(1)(a).]

[F12 (7) In this paragraph, “duty suspension arrangement” has the meaning given in regulation 3(1) of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010.]

Textual Amendments

F1 Words in Sch. 3 para. 4(1) substituted (31.12.2020) by The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1215), regs. 1(2), 13(3)(a)(i); S.I. 2020/1643, reg. 2, Sch.

F2 Word in Sch. 3 para. 4(1) substituted (31.12.2020) by The Customs Transit Procedures (Amendment, etc) (EU Exit) Regulations 2020 (S.I. 2020/1491), regs. 1, 5(3); S.I. 2020/1643, reg. 2, Sch.

F3 Sch. 3 para. 4(1A)(1B) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 8(3)(d) (as amended by S.I. 2019/1346, reg. 9); S.I. 2020/1643, reg. 2, Sch.

F4 Words in Sch. 3 para. 4(1A) substituted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 39(4)(e)(i); S.I. 2020/1643, reg. 2, Sch.

F5 Sch. 3 para. 4(1C) inserted (31.12.2020) by The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1215), regs. 1(2), 13(3)(a)(ii); S.I. 2020/1643, reg. 2, Sch.

F6 Sch. 3 para. 4(2)(2A) substituted for Sch. 3 para. 4(2) (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1346), regs. 1(2), 5(4)(d)(i); S.I. 2020/1643, reg. 2, Sch.

F7 Words in Sch. 3 para. 4(3) substituted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 39(4)(e)(ii); S.I. 2020/1643, reg. 2, Sch.

F8 Words in Sch. 3 para. 4(4) substituted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1346), regs. 1(2), 5(4)(d)(ii); S.I. 2020/1643, reg. 2, Sch.

F9 Sch. 3 para. 4(4A) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1346), regs. 1(2), 5(4)(d)(iii); S.I. 2020/1643, reg. 2, Sch.

F10 Sch. 3 para. 4(5)(6) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 8(3)(e); S.I. 2020/1643, reg. 2, Sch.

F11 Words in Sch. 3 para. 4(5) substituted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 39(4)(e)(iii); S.I. 2020/1643, reg. 2, Sch.

F12 Sch. 3 para. 4(7) inserted (31.12.2020) by The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1215), regs. 1(2), 13(3)(a)(iii); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I1 Sch. 3 para. 4 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

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”). U.K.

(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.

Commencement Information

I2 Sch. 3 para. 5 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

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

Commencement Information

I3 Sch. 3 para. 6 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Operation of the UK transit procedure U.K.

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 [F13 Great Britain].

Textual Amendments

F13 Words in Sch. 3 para. 7 substituted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 39(4)(f); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I4 Sch. 3 para. 7 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

[F14 7A.   For a UK transit procedure covered by paragraph 1A and where the goods are in the Isle of Man, paragraph 7 applies as if the customs authority for the Isle of Man is HMRC (except in relation to any route prescribed for the procedure by HMRC) and as if the Isle of Man is within [F15 Great Britain].]

Textual Amendments

F14 Sch. 3 para. 7A inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 8(3)(f); S.I. 2020/1643, reg. 2, Sch.

F15 Words in Sch. 3 para. 7A substituted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 39(4)(g); S.I. 2020/1643, reg. 2, Sch.

End of the UK transit procedure U.K.

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 [F16 anywhere except Great Britain].

[F17 (6) For a UK transit procedure that ends in the Isle of Man—

(a) sub-paragraph (5)(a) applies in relation to Schedule 1, paragraph 35(1)(b) as if—

(i) the customs authority in question is any other than HMRC or the customs authority for the Isle of Man, and

(ii) the document or customs record establishes that the goods have physically left [F18 Great Britain] and the Isle of Man;

(b) sub-paragraph (5)(b) applies as if [F19 Great Britain] includes the Isle of Man.

(7) A UK transit procedure also ends as provided for by paragraph 13(1).]

Textual Amendments

F16 Words in Sch. 3 para. 8(5)(b) substituted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 39(4)(h)(i); S.I. 2020/1643, reg. 2, Sch.

F17 Sch. 3 para. 8(6)(7) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 8(3)(g); S.I. 2020/1643, reg. 2, Sch.

F18 Words in Sch. 3 para. 8(6)(a)(ii) substituted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 39(4)(h)(ii); S.I. 2020/1643, reg. 2, Sch.

F19 Words in Sch. 3 para. 8(6)(b) substituted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 39(4)(h)(iii); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I5 Sch. 3 para. 8 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Discharge of the UK transit procedure U.K.

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.

[F20 (6) A UK transit procedure is also discharged as provided for by paragraph 13(1).]

Textual Amendments

F20 Sch. 3 para. 9(6) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 8(3)(h); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I6 Sch. 3 para. 9 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

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

(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 [F21 an amount] 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.

Textual Amendments

F21 Words in Sch. 3 para. 10(1)(b) substituted (31.12.2020) by The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1215), regs. 1(2), 13(3)(b); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I7 Sch. 3 para. 10 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Consequences of UK transit procedure discharge and liability to import duty U.K.

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).

[F22 (3) Sub-paragraph (1) applies only where the UK transit procedure is discharged in [F23 Great Britain] and otherwise than under TCTA, Schedule 2, paragraph 18(2).]

Textual Amendments

F22 Sch. 3 para. 11(3) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 8(3)(i); S.I. 2020/1643, reg. 2, Sch.

F23 Words in Sch. 3 para. 11(3) substituted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 39(4)(i); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I8 Sch. 3 para. 11 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.