CHAPTER I

GENERAL PROVISIONS

Definitions
Article 1
For the purposes of this Regulation, the following definitions shall apply:
1. ‘licence’ means an electronic or paper document with a specific period of validity, expressing the right and obligation to import or export products;
2. ‘notice on import and export licences for agricultural products’ means the detailed provisions for the import licence or export licence and set of information to be mentioned in a licence application and in a licence as published on the website of the licence issuing authority .

Cases where a licence is required
Article 2
1
An import licence shall be presented for the following products:
a
products listed in Part I of the Annex, when they are declared for release for free circulation under all conditions, other than tariff rate quotas, save as otherwise provided in that Part I;
b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
products for which Part I of the Annex refers to this provision when declared for release for free circulation under tariff rate quotas administered by the method of the ‘first come, first served’ principle ...;
d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e
products that are covered by an outward processing procedure using an export licence and that return into release for free circulation as a product listed in Section A ... of Part I of the Annex;
f. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
An export licence shall be presented for the following products:
a
products listed in Part II of the Annex;
b
United Kingdom products for which an export licence needs to be presented for admission under a quota that is administered by the United Kingdom or by a third country and has been opened in that country for those products;
c
the following United Kingdom products referred to in Part II of the Annex to be exported:
1. products that are under the customs procedure of inward processing;
2. products that are basic products as listed in Annex III to Regulation (EU) No 510/2014 of the European Parliament and of the Council and that are under the customs procedure of outward processing;
3. products that are subject to the repayment or remission of the amount of import or export duty as set out in
Part 7 of the Customs (Import Duty) (EU Exit) Regulations 2018
in respect of which a final decision has not yet been taken.

Cases where a licence is not required
Article 3
1
A licence shall not be required and shall not be issued or presented for the purposes of:
a
release for free circulation or export of products of a non-commercial nature as set out in Section II(D)(2) of Part One of Annex I to Council Regulation (EEC) No 2658/87 ;
b
cases in which relief from import duties or export duties is to be granted;
c
quantities of products to be released for free circulation or export not exceeding those set out in the Annex;
d
products to be released for free circulation as returned goods ...;
e
products for which at the time of acceptance of the re-export declaration the declarant provides proof that a favourable decision for repayment or remission of import duties has been given in respect of such products under Part 7 of the Customs (Import Duty) (EU Exit) Regulations 2018.
By way of derogation from points (b) and (c) of the first subparagraph, a licence shall be required where an export is being made under preferential arrangements which are granted by means of the licence.
For the purposes of point (c) of the first subparagraph, the quantity to be covered by one licence shall be calculated as comprising all the quantities to be released for free circulation or to be exported that are covered by the same logistic operation.
2
An export licence shall not be required and shall not be issued or presented in respect of products consigned by private individuals or groups of private individuals with a view to their free distribution for humanitarian aid purposes in third countries where such consignments are occasional in nature, comprise varied products and do not exceed a total of 30 000 kg per means of transport. Food aid operations not meeting these conditions are subject to a licence in accordance with this Regulation and the Implementing Regulation (EU) 2016/1239.

Security
Article 4
1
Licences are subject to a security, except in the cases provided for in the Annex.
2
When submitting an application for a licence, the applicant shall lodge a security, which shall be available at the licence issuing authority not later than midday on the day the application is submitted.
3
No security shall be required where the security comes to a threshold of EUR 100 or less.
For that purpose, the amount of the security shall be calculated as comprising all the quantities resulting from obligations covered by the same logistic operation.
4
No security shall be required where the applicant is either:
a
a public body responsible for executing the duties of a public authority; or
b
a private body executing duties referred to in point (a) under a United Kingdom authority's supervision.
5
The security lodged in respect of a quantity for which a licence has not been issued shall be released forthwith.

Rights and obligations, tolerance
Article 5
1
The import or export licence shall constitute a right and give rise to an obligation to release for free circulation or to export, respectively, the quantity of products covered by the licence during its period of validity in accordance with Article 7(1) of Implementing Regulation (EU) 2016/1239.
2
The customs declaration for release for free circulation or for export shall be lodged by:
a
the titular holder of the licence mentioned in Section 4 of the licence of which a model is set out in Annex I to Implementing Regulation (EU) 2016/1239 (‘titular holder’);
b
the transferee mentioned in Section 6 of the licence referred to in point (a); or
c
an appointed customs agent acting on behalf of the titular holder or transferee as provided for in section 21 of the Taxation (Cross-border Trade) Act 2018, specifying in the customs declaration that the titular holder or transferee is the person on whose behalf the obligation mentioned in paragraph 1 is carried out.
3
If specific United Kingdom legislation provides so, the obligation to release for free circulation or to export may include the obligation to release from or export to the country or group of countries specified in the licence.
4
The obligation to release for free circulation or to export shall be considered fulfilled if the total quantity specified on the licence has been cleared by customs under the relevant procedure. For that purpose a positive or negative tolerance on the quantity specified on the licence shall apply in accordance with Article 8 of Implementing Regulation (EU) 2016/1239.
5
A positive tolerance shall not apply where the quantity specified on the import licence is equivalent to the quantity specified in an export document, being an element of proof that the product is eligible for the preferential treatment due to its specific quality, variety, or characteristics, as required in the relevant international agreement.
Where the import licence is required for a tariff rate quota, the quantity in excess to the quantity specified on the import licence within the positive tolerance, shall be brought into free circulation under the same licence subject to the conventional rate of duty.

Transfer
Article 6
1
Obligations deriving from licences shall not be transferable. Save as otherwise provided for, rights deriving from licences shall be transferable by their titular holder during the period of the validity of the licence.
2
A transfer of rights deriving from a licence ... may be made in favour of a single transferee only and shall cover the quantities not yet attributed to the licence ....
3
A transfer shall be requested by the titular holder at the licence issuing authority which issued the original licence.
4
Transferees shall not transfer their rights further but may transfer them back to the titular holder. Transfers back to the titular holder shall cover the quantities not yet attributed to the licence .... The licence issuing authority shall note the transfer back according to the notice on import and export licences for agricultural products.
5
The transfer or transfer back to the titular holder shall take effect from the date as validated by the licence issuing authority.

Release and forfeit of securities
Article 7
1
The release of security provided for in Article 24(2) of Commission Delegated Regulation (EU) No 907/2014 may be partial in proportion to the quantity of products for which the evidence of fulfilling the obligation to import or export has been furnished. That quantity shall not be less than 5 % of the total quantity specified on the licence.
However, if the quantity imported or exported amounts to less than 5 % of the quantity specified on the licence, the whole security shall be forfeit.
2
When calculating the part of the security to forfeit, where applicable, the licence issuing authority shall deduct an amount corresponding to the quantitative tolerance referred to in Article 5(4).
3
Where the licence issuing authority waives the security requirement where the value of the sum secured is less than £500, as provided for in Article 18(2) of Delegated Regulation (EU) No 907/2014, the amount of the sum equal to the security to forfeit shall be paid by the party concerned on expiry of 60 days following the date on which the validity of the licence expires.
4
If the total amount of the security which would be forfeit comes to £100 or less for a given licence, the licence issuing authority shall release the whole security.

Notifications
Article 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regulation (EU) No 510/2014 of the European Parliament and of the Council of 16 April 2014 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products and repealing Council Regulations (EC) No 1216/2009 and (EC) No 614/2009 (OJ L 150, 20.5.2014, p. 1).
Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1).
Commission Delegated Regulation (EU) No 907/2014 of 11 March 2014 supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to paying agencies and other bodies, financial management, clearance of accounts, securities and use of euro (OJ L 255, 28.8.2014, p. 18).
Substituted by Commission Delegated Regulation (EU) 2017/1965 of 17 August 2017 amending Delegated Regulation (EU) 2016/1237 as regards the nature and type of information to be notified for licences in the rice sector (Text with EEA relevance).
Words in Art. 1(b) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 1; 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 2(1)(c) omitted (31.12.2020) by virtue of The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 2(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 2(1)(e) omitted (31.12.2020) by virtue of The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 2(2)(b); 2020 c. 1, Sch. 5 para. 1(1)
Art. 2(1)(b) omitted (31.12.2020) by virtue of The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 2(2)(c); 2020 c. 1, Sch. 5 para. 1(1)
Art. 2(1)(d) omitted (31.12.2020) by virtue of The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 2(2)(c); 2020 c. 1, Sch. 5 para. 1(1)
Art. 2(1)(f) omitted (31.12.2020) by virtue of The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 2(2)(c); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 2(2)(b) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 2(3)(a)(i); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 2(2)(b) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 2(3)(a)(ii); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 2(2)(c) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 2(3)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 2(2)(c)(iii) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 2(3)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 3(1)(b) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 3(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
Word in Art. 3(1) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 3(3); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 3(1)(d) omitted (31.12.2020) by virtue of The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 3(2)(b); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 3(1)(e) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 3(2)(c); 2020 c. 1, Sch. 5 para. 1(1)
Word in Art. 4(2) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 4(2); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 4(4)(b) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 4(3); 2020 c. 1, Sch. 5 para. 1(1)
Word in Art. 5(2)(c) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 5(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 5(2)(c) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 5(2)(b); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 5(3) substituted (31.12.2020) by The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 5(3); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 6(2) omitted (31.12.2020) by virtue of The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 6(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 6(2) omitted (31.12.2020) by virtue of The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 6(2)(b); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 6(4) omitted (31.12.2020) by virtue of The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 6(3); 2020 c. 1, Sch. 5 para. 1(1)
Sum in Art. 7(3) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products (Miscellaneous Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1452), regs. 1(2)(a), 4(2)(a)
Sum in Art. 7(4) substituted (31.12.2020) by The Common Organisation of the Markets in Agricultural Products (Miscellaneous Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1452), regs. 1(2)(a), 4(2)(b)
Art. 8 omitted (31.12.2020) by virtue of The Import and Export Licences (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/1409), reg. 1(2), Sch. 1 para. 7; 2020 c. 1, Sch. 5 para. 1(1)