The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020

EXPLANATORY NOTE

(This note is not part of the Regulations)

The Regulations are made by the Treasury further to Part 1 of the Taxation (Cross-border Trade) Act 2018 (c. 22) (“the Act”). This is an EU Exit statutory instrument. The Regulations make provision for relief from a liability to import duty by reference to a document entitled “United Kingdom Customs Tariff: Reliefs from Import Duty”, version 1.0 dated 8th December 2020.

Part 1 (introductory provisions)>

Part 1 provides for citation and commencement and definitions used in the Regulations. The Regulations will be brought into force by way of a separate statutory instrument made under section 52 of the Act.

Part 2 (application, claims, waivers, prior approvals and conditions)

Part 2 makes provision for the application of Parts 2 to 6 to chargeable goods declared for the free circulation procedure; when HMRC can grant a claim, including where an eligibility criterion is not met; prior approvals granted by HMRC, including transitional provisions in relation to approvals granted in respect of relief from a liability to an EU customs duty; the application of relief conditions, including the waiver or variation of a condition; the application of approval provisions in the Customs (Import Duty) (EU Exit) Regulations 2018 (S.I. 2018/1248: “the Import Duty Regulations”).

Part 3 (general claims for relief)

Part 3 makes general provision in relation to making a claim for relief, the information and evidence to be given in relation to a claim and notifications to be given by HMRC on receipt of a claim.

Part 4 (special claims for relief)

Part 4 makes special provision for claims for relief in relation to goods imported by post, goods in relation to which a Customs declaration is made orally or by conduct and where a claim is made in an advance electronic declaration.

Part 5 (repayment)

Part 5 makes provision for the repayment of import duty where a claim for relief is granted.

Part 6 (breach of conditions)

Part 6 makes provision for notification of a breach of a relief condition and for liability to import duty on breach of a relief condition.

Part 7 (authorised use)

Part 7 makes provision for a lower rate of import duty to apply in relation to goods declared for an authorised use procedure. The rate is set out in a document entitled “Authorised Use: Eligible goods and rates”, version 1.0 dated 14th December 2020.

Part 8 (consequential amendments)

Part 8 makes consequential amendments in relation to reliefs.

Regulation 21 amends the Schedule to the Customs (Contravention of a Relevant Rule) Regulations 2003 (S.I. 2003/3113) to impose penalties for breaches of regulation 7 and 17 of these Regulations.

Regulation 22 amends the Import Duty Regulations 2018. Regulation 14 is amended to insert a reference to the UK Reliefs document. Regulations 19, 24 and 25 are amended to restrict cases where an oral or by conduct declaration can be made to specific cases where full relief from import duty is available.

Regulation 23 amends the Customs (Crown Dependencies Customs Union) (EU Exit) Regulations 2019 (S.I. 2019/385) to extend relief provisions to the Isle of Man.

Regulation 24 amends the Customs (Bulk Customs Declaration and Miscellaneous Amendments) (EU Exit) Regulations 2020 (2020/967). Regulation 2 is amended to insert a reference to the UK Reliefs document. Regulation 5(2) is amended to restrict cases where a bulk Customs declaration can be made to specific cases where full relief from import duty is available.

The notices referred to in regulations 9, 10, 12 and 18, and in amendments made by regulation 23, will be published at https://www.gov.uk/government/collections/customs-vat-and-excise-uk-transition-legislation-from-1-january-2021. A person unable to access the notices electronically may access them, while government advice on social distancing and unnecessary travel applies, in hard copy by post free of charge on application to 07741835049, and otherwise by inspection free of charge at HMRC, 100 Parliament Street, London SW1A 2BQ.

This instrument is one of a group of instruments covered by an overarching Tax Information and Impact Note (TIIN). The TIIN primarily focusses on the Customs Tariff (Establishment) (EU Exit) Regulations 2020 and will be available in due course at: https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.