The Customs (Import Duty) (EU Exit) Regulations 2018

Specified amount: reduced amounts and waivers in relation to comprehensive guarantees U.K.

99.—(1)  [F1 Subject to paragraph (1A)] HMRC must approve a reduction in the specified amount in relation to a comprehensive guarantee to 50% of the amount determined under regulation 98(1)(b) 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—

(i) import duty [F2 and duty charged under section 30C of the Act]; and

(ii) EU customs duty under the EU Customs Code as it had effect before [F3 IP completion day]; and

(e) has sufficient financial resources to meet the liability or potential liability not guaranteed by the reduced comprehensive guarantee.

[F4 (1A) HMRC must not approve a reduction in the specified amount under paragraph (1) unless—

(a) the person, and any directors or senior employees of that person, have not been involved in a breach of an obligation relating to tax or a Customs obligation, which in the opinion of an HMRC officer is—

(i) a serious breach having regard to the circumstances, nature and number of breaches; and

(ii) relevant to the suitability of that person to give a reduced comprehensive guarantee;

(b) the person, and any directors or senior employees of that person, have no criminal conviction which in the opinion of an HMRC officer is—

(i) serious having regard to the type of conviction; and

(ii) relevant to the suitability of that person to give a reduced comprehensive guarantee; and

(c) the person is—

(i) a regular user of the Customs procedure in relation to which the comprehensive guarantee will be used;

(ii) in the opinion of an HMRC officer, a suitable person to give a reduced comprehensive guarantee taking account of that person’s financial standing and practical experience; or

(iii) approved as an operator of a temporary storage facility.

(1B) For the purposes of paragraph (1A)(c)(i), a person is a regular user of a Customs procedure if that person has used that procedure on at least three occasions in the 12 month period preceding the application for authorisation.]

(2) HMRC must approve a reduction in the specified amount in relation to a comprehensive guarantee to 30% of the amount determined under regulation 98(1)(b) if satisfied that the person authorised to give the comprehensive guarantee—

[F5 (a) meets the conditions in—

(i) paragraph (1); and

(ii) paragraph (1A); and]

(b) maintains procedures to ensure that HMRC are notified of any breach of any Customs obligation.

(3) HMRC must approve a waiver to the requirement for a comprehensive guarantee in relation to a potential liability to pay import duty [F6 or duty charged under section 30C of the Act] if satisfied that the person authorised to give the comprehensive guarantee—

(a) [F7 meets the conditions in—

(i) paragraphs (1) and (2)(b); and

(ii) paragraph (1A);]

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

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

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

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

(f) maintains satisfactory computer system security measures.

(4) A person authorised as an authorised economic operator is treated as meeting the conditions in [F8 paragraphs (2)(a)(i) and (b) and (3)(a)(i) and (b) to (f)].

(5) In this regulation, “generally accepted accounting practice” has the meaning given in section 1127 of the Corporation Tax Act 2010 M1 .

Textual Amendments

F1 Words in reg. 99(1) inserted (21.3.2019 for specified purposes, 31.12.2020 in so far as not already in force) by The Customs (Import Duty, Transit and Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/326), regs. 1(2)(4)(a), 12(3)(a); S.I. 2020/1643, reg. 2, Sch.

F2 Words in reg. 99(1)(d)(i) inserted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 37(8)(a); S.I. 2020/1643, reg. 2, Sch.

F3 Words in reg. 99(1)(d)(ii) substituted (31.12.2020) by The Customs (Transitional) (EU Exit) Regulations 2020 (S.I. 2020/1449), regs. 1(2), 11(6); S.I. 2020/1643, reg. 2, Sch.

F4 Reg. 99(1A)(1B) inserted (21.3.2019 for specified purposes, 31.12.2020 in so far as not already in force) by The Customs (Import Duty, Transit and Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/326), regs. 1(2)(4)(a), 12(3)(b); S.I. 2020/1643, reg. 2, Sch.

F5 Reg. 99(2)(a) substituted (21.3.2019 for specified purposes, 31.12.2020 in so far as not already in force) by The Customs (Import Duty, Transit and Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/326), regs. 1(2)(4)(a), 12(3)(c); S.I. 2020/1643, reg. 2, Sch.

F6 Words in reg. 99(3) inserted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 37(8)(b); S.I. 2020/1643, reg. 2, Sch.

F7 Reg. 99(3)(a) substituted (21.3.2019 for specified purposes, 31.12.2020 in so far as not already in force) by The Customs (Import Duty, Transit and Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/326), regs. 1(2)(4)(a), 12(3)(d); S.I. 2020/1643, reg. 2, Sch.

F8 Words in reg. 99(4) substituted (21.3.2019 for specified purposes, 31.12.2020 in so far as not already in force) by The Customs (Import Duty, Transit and Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/326), regs. 1(2)(4)(a), 12(3)(e); S.I. 2020/1643, reg. 2, Sch.

Modifications etc. (not altering text)

C1 Pt. 10 modified (31.12.2020) by S.I. 2018/1247, Sch. 2 para. 6 (as inserted by The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1215), regs. 1(2), 10(4); S.I. 2020/1643, reg. 2, Sch.)

C2 Pts. 1-10 applied (with modifications) (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 32; S.I. 2020/1643, reg. 2, Sch.

C3 Pt. 10 modified (31.12.2020) by S.I. 2018/1258, Sch. 3 para. 4(1C) (as inserted 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.)

C4 Pt. 10 modified (31.12.2020) by S.I. 2018/1249, reg. 4(3) (as inserted by The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1215), regs. 1(2), 12(2)(e); S.I. 2020/1643, reg. 2, Sch.)

C5 Reg. 99(1A)(a) modified (8.4.2019) by The Customs (Crown Dependencies Customs Union) (EU Exit) Regulations 2019 (S.I. 2019/385), regs. 1(2), 5(13) (with reg. 2); S.I. 2019/819, reg. 3(c)

Commencement Information

I1 Reg. 99 in force at 2.1.2019 for specified purposes, see reg. 1(4)(d)

I2 Reg. 99 in force at 31.12.2020 in so far as not already in force by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M1 2010 c. 4.