The Customs Transit Procedures (EU Exit) Regulations 2018

Guarantees: supplementary rules for the common transit procedure U.K.

64.—(1) This paragraph supplements and modifies the provision mentioned in paragraph 29(1)(c) about guarantees for the purposes of each common transit procedure.

(2) For the purpose of calculating the amount of the guarantee, domestic goods carried subject to the common transit procedure must be treated as chargeable goods.

(3) The specified amount of the guarantee must correspond to an amount of customs debt which may become payable in connection with each common transit procedure in respect of which the guarantee is provided, in the period between the declaring of the goods for the common transit procedure and the discharge of that procedure.

For the purpose of that calculation, account must be taken of the highest rates of customs debt [F1 excluding duties under sections 30A(3) and 40A TCTA] applicable to goods of the same type in the United Kingdom, and of sub-paragraph (2).

HMRC must establish the specified amount for the purposes of a comprehensive guarantee in cooperation with the holder of the procedure, on the basis of the information on goods subject to the common transit procedure in the preceding 12 months, and on an estimate of the volume of intended common transit procedures as shown in particular by the commercial documentation and accounts of the holder of the procedure.

Where the information necessary to determine the specified amount for the purposes of a comprehensive guarantee is not available to HMRC, that amount is fixed according to the Convention, Appendix I, Article 74(2) third sub-paragraph and Appendix II, Article 22.

(4) [F2 Except in cases covered by paragraph 18(4), at point (b) or paragraph 29(1A), only] the types and forms of guarantee stipulated in a public notice are acceptable for the purposes of this Schedule.

F3 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) HMRC must approve a waiver to the requirement for a comprehensive guarantee in relation to a potential liability to pay a customs debt if satisfied that the person authorised to give the comprehensive guarantee—

(a) draws up accounts in accordance with generally accepted accounting practice;

(b) maintains reliable business records;

(c) is solvent;

(d) has in the preceding three years discharged any liability to pay any customs debt howsoever incurred in the United Kingdom;

(e) has sufficient financial resources to meet the liability or potential liability not guaranteed as a result of the waiver;

(f) maintains procedures to ensure that HMRC are notified of any breach of any Customs obligations;

(g) allows HMRC officers access to all electronic and physical information systems maintained by that person;

(h) maintains a logistical system that identifies chargeable goods and domestic goods and their location;

(i) where the liability relates to agricultural goods, has satisfactory procedures to ensure compliance with any relevant regulatory obligation in relation to agricultural goods;

(j) has satisfactory procedures in relation to archiving records; and

(k) maintains satisfactory computer system security measures.

(11) Where an applicant holds an authorised economic operator authorisation pursuant to regulations under TCTA, section 22 the requirements set out in sub-paragraph (10)(a) to (k) are deemed to be met.

(12) References to “import duty” and “Customs procedure” in [F4 Part 10 of the import duty regulations] must be taken for the purposes of this Schedule as respective references to “customs debt” and “common transit procedure”.

Textual Amendments

F1 Words in Sch. 1 para. 64 inserted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 39(2)(nn); S.I. 2020/1643, reg. 2, Sch.

F2 Words in Sch. 1 para. 64(4) substituted (31.12.2020) by The Customs Transit Procedures (Amendment, etc) (EU Exit) Regulations 2020 (S.I. 2020/1491), regs. 1, 4(7); S.I. 2020/1643, reg. 2, Sch.

F3 Sch. 1 para. 64(5)-(9) omitted (31.12.2020) by virtue of The Customs Transit Procedures (Amendment, etc) (EU Exit) Regulations 2020 (S.I. 2020/1491), regs. 1, 4(8); S.I. 2020/1643, reg. 2, Sch.

F4 Words in Sch. 1 para. 64(12) 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(2)(d)(iii); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I1 Sch. 1 para. 64 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.