The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019

Special customs procedures, outward processing U.K.

7.—(1) The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 M1 are amended as follows.

(2) In regulation 13A—

(a) in paragraph (3), omit “ “re-export notification”,”;

(b) in paragraph (4)—

(i) in sub-paragraph (j), omit “and”, and

(ii) after sub-paragraph (j) insert—

“(ja) in regulation 40(3), for “person who made the export declaration” the “holder of the procedure” were substituted;”.

(3) In regulation 17(6)(b) for “released for export” substitute “ released to a common export procedure under regulation 49 of the Customs (Export) (EU Exit) Regulations 2019 M2 ”.

(4) In regulation 22(3)—

(a) in the words before sub-paragraph (a) for “the following requirements apply” substitute “ the following are requirements of the procedure ”;

(b) in sub-paragraph (a)—

(i) for “must process” substitute “ processes ”,

(ii) for “arrange” substitute “ arranges ”;

(c) in sub-paragraph (b) for “must result” substitute “ results ”;

(d) in sub-paragraph (c)—

(i) in the words before paragraph (i) for “must” substitute “ does ”,

(ii) in paragraph (i), after the semi-colon omit “and”,

(iii) in paragraph (ii), at the end insert “ ; and ”,

(iv) after paragraph (ii) insert—

“(iii) the arrangements are not of a description specified in a notice published by HMRC.”.

(5) After regulation 28 insert—

“Outward processing – goods regarded as domestic goods

28A.— (1) This regulation applies where—

(a) goods are released to an outward processing procedure;

(b) the processing of the goods under the procedure consists in their repair by any person without charge;

(c) there is a breach of—

(i) the terms of the declaration for the procedure; or

(ii) any other requirement in relation to the procedure; and

(d) an HMRC officer is satisfied that the person who caused the breach did not do so for the purposes of—

(i) avoiding, or enabling any other person to avoid, any Customs obligation that would have applied if the breach had not occurred;

(ii) preventing a liability to import duty or charges being incurred by any person; or

(iii) preventing the application of any non-tariff trade policy measure or agricultural policy measure.

(2) Where this regulation applies, the goods continue to be regarded as domestic goods.”.

(6) In regulation 29—

(a) in paragraph (4)(a) before “the replacement goods” insert “ subject to paragraph (9) ”;

(b) in paragraph (6)(a) before “the value of the replacement goods” insert “ subject to paragraph (9), ”;

(c) in paragraph (7)—

(i) in sub-paragraph (a), after the semi-colon omit “and”,

(ii) in sub-paragraph (b)(ii), after the semi-colon insert “ and ”,

(iii) after sub-paragraph (b) insert—

“(ba) subject to paragraph (9), where paragraph (4) does not apply, if the domestic goods are exported within the required export period—

(i) the value of the replacement goods is to be determined in accordance with regulation 31(2); and

(ii) domestic goods repaired outside the United Kingdom and then imported into the United Kingdom are not to be treated as imported in accordance with the outward processing procedure.”;

(d) after paragraph (8) insert—

“(9) Paragraphs (4)(a), (6)(a) and (7)(ba)(i) do not apply where—

(a) there is a breach of—

(i) the terms of the declaration for the procedure; or

(ii) any other requirement in relation to the procedure; and

(b) an HMRC officer is satisfied that the person who caused the breach did so for the purposes of—

(i) avoiding, or enabling any other person to avoid, any Customs obligation that would have applied if the breach had not occurred;

(ii) preventing a liability to import duty or charges being incurred by any person; or

(iii) preventing the application of any non-tariff trade policy measure or agricultural policy measure.”.

(7) In regulation 31—

(a) after paragraph (1) insert—

“(1A) This paragraph applies where—

(a) goods are released to an outward processing procedure;

(b) the processing of the goods under the procedure consists in anything other than their repair by any person without charge;

(c) the goods are imported in accordance with the procedure;

(d) there is a breach of—

(i) the terms of the declaration for the procedure; or

(ii) any other requirement in relation to the procedure; and

(e) an HMRC officer is satisfied that the person who caused the breach did not do so for the purposes of—

(i) avoiding, or enabling any other person to avoid, any Customs obligation that would have applied if the breach had not occurred;

(ii) preventing a liability to import duty or charges being incurred by any person; or

(iii) preventing the application of any non-tariff trade policy measure or agricultural policy measure.

(1B) Where paragraph (1A) applies, the value of the goods is to be reduced in accordance with paragraph (1).”;

(b) in paragraph (2) after “29(6)(a)” insert “ or (7)(ba) ”.

(8) In regulation 33(3)(a), after “United Kingdom” insert “ or the UK sector of the continental shelf ”.

(9) After regulation 33(6), insert—

“(7) In paragraph (3)(a), “the UK sector of the continental shelf” means the areas designated by Order in Council under section 1(7) of the Continental Shelf Act 1964 M3 .”.

(10) In regulation 34—

(a) for paragraph (1) substitute—

“(1) This regulation applies where—

(a) goods released to an authorised use procedure are substantially destroyed;

(b) part of the goods remains (“the remaining goods”); and

(c) the remaining goods are rendered unusable for the use for which they were imported without further processing.”;

(b) omit paragraph (2);

(c) in paragraph (3) for “Waste and scrap of the kind referred to in paragraph (1) is” substitute “ The remaining goods are ”.

(11) After regulation 34 insert—

“Authorised use relief – breach of a requirement

34A.— (1) This regulation applies where—

(a) goods are released to an authorised use procedure;

(b) a breach of a requirement relating to the procedure gives rise to a liability to import duty under section 4(4)(d) of the Act; and

(c) an HMRC officer is satisfied that the person who caused the breach did not do so for the purposes of—

(i) avoiding, or enabling any other person to avoid, any Customs obligation that would have applied if the breach had not occurred;

(ii) preventing a liability to import duty or charges being incurred by any person; or

(iii) preventing the application of any non-tariff trade policy measure or agricultural policy measure.

(2) Where this regulation applies, relief from the liability to import duty arising under section 4(4)(d) of the Act is to be given.”.

(12) In regulation 37(5)(b)(i) after “subject” insert “ to ”.

(13) In regulation 40(2)(b) for “a” substitute “ any ”.

(14) In regulation 45(2)(e), in the words before paragraph (i) for “storage warehouse” substitute “ customs warehouse ”.

Commencement Information

I1 Reg. 7 not in force at made date, see reg. 1(3)

I2 Reg. 7 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M1 S.I. 2018/1249, amended by S.I. 2019/108, 2019/326.

M2 S.I. 2019/108. Regulation 49(1) sets out when the release of goods to a common export procedure occurs.

M3 1964 c. 29; section 1(7) was amended by paragraph 1 of Schedule 3 to the Oil and Gas (Enterprise) Act 1982 (c. 23) and section 103 of the Energy Act 2011 (c. 16).