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The Customs (Tariff Quotas) (EU Exit) Regulations 2020

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This is the original version (as it was originally made).

CHAPTER 3Administration of Import Licences

Issue and period of validity of the licence

35.—(1) If an application for an import licence is granted, the Secretary of State must issue the import licence before the end of the month in which the licence application was received, except that licences that are valid from 1st January must be issued by 16th December of the preceding year.

(2) An import licence issued under paragraph (1) (other than a licence referred to in paragraph (4)) is valid from—

(a)the first day of the opening of the quota period or sub-period for which the application was made, if the licence application was received prior to the commencement of the quota period or sub-period;

(b)the first day of the month following receipt of the licence application, if the application is received within the quota period or sub-period for which the application was made;

(c)1st January of the following year, in the case of an application received within the period of seven days beginning with 17th November.

(3) An import licence (other than a licence referred to in paragraph (4)) is valid until—

(a)the end of the quota period in respect of which it was issued; or

(b)if the licence was issued in respect of a sub-period, until the end of the quota period within which that sub-period falls.

(4) An import licence—

(a)in respect of which a certificate of authenticity was required to be submitted under regulation 30 is valid for the quota period or a period of three months beginning with the day on which the licence was issued, whichever period ends first;

(b)in respect of which an Inward Monitoring Arrangement certificate was required to be submitted under regulation 31 is valid for the period beginning with the day on which the licence was issued and ending with the same day as the final day of the period of validity deemed to apply under regulation 31(4) for a certificate so submitted.

Allocation of quota

36.—(1) On the grant of an import licence, the Secretary of State must specify in the licence the quantity of quota goods to be imported under the licence.

(2) The quantity of quota goods to be imported is to be determined by—

(a)calculating an allocation coefficient in respect of the quota concerned; and

(b)applying the coefficient to the application quantity.

(3) The allocation coefficient is to be calculated for each quota as follows—

  • (available quantity/requested quantity) × 100%.

(4) But if the allocation coefficient calculated under paragraph (3) exceeds 100%, the allocation coefficient is to be 100%.

(5) The allocation coefficient is to be applied to the application quantity as follows—

  • (application quantity × allocation coefficient).

(6) The figure resulting from the application of the allocation coefficient is the quantity of quota goods to be imported under the licence, rounded down to the nearest unit.

(7) For the purposes of calculating and applying the allocation coefficient—

(a)the requested quantity is the sum total of the application quantities to which the allocation coefficient is being applied; and

(b)the application quantity is the quantity of quota goods proposed to be imported in a valid application for the import licence concerned.

(8) The Secretary of State may adjust the allocation coefficient to ensure that the quantity of quota goods allocated on the grant of import licences does not exceed the available quantity specified in the notice published under regulation 22(1).

(9) The Secretary of State must publish a notice of the allocation coefficient which has been applied in respect of the requested quantity.

Licence conditions

37.  An import licence may be granted subject to such terms and conditions as the Secretary of State considers necessary for the purposes of this Part.

Transfer of an import licence or extract

38.—(1) A person to whom an import licence has been granted (in this regulation, “the transferor”) may apply to the Secretary of State for the transfer of that licence, or for the transfer of an extract from that licence (an “extract”), to another person (“the transferee”).

(2) An application for the transfer of an extract from a licence must specify the quantity of goods proposed for extraction from those remaining to be imported under the licence.

(3) The Secretary of State may approve the transfer of the licence, or an extract from the licence, if the Secretary of State is satisfied—

(a)that the transferee is an operator; and

(b)where applicable, the transferee meets the same requirements as had been applied to the transferor for the grant of the licence under regulation 23(5) (in respect of submitting proof of trade) and regulation 23(8) (in respect of submitting a declaration of independence).

(4) With effect from the date of the transfer of an extract from an import licence—

(a)the extract is to be treated as though it had been transferred as an import licence for the purposes of these Regulations;

(b)the quantity of goods licensed for import by virtue of the transfer of the extract is the quantity extracted from the original licence; and

(c)the corresponding quantity of goods licensed for import by virtue of the transfer of the extract is to be deducted from the original licence held by the transferor.

(5) With effect from the date of the transfer of the licence, or of the extract from that licence, the quantity of any further quota goods released under the free-circulation procedure under that licence or extract is to be attributed to the transferee and is to be taken into account for the purposes of any subsequent application for an import licence to establish the transferee’s—

(a)reference quantity under regulation 27; or

(b)proof of trade under regulation 29.

Surrender of an import licence

39.—(1) A licence holder may surrender an import licence by giving notice to the Secretary of State to that effect.

(2) Where a notice is given under paragraph (1), the import licence to which it relates ceases to have effect on receipt of the notice by the Secretary of State.

Return and forfeiture of security

40.—(1) This regulation applies to any security which is held by the Secretary of State consequent to the grant of an import licence and is subject to any decision under regulation 42(3) that the security is forfeited.

(2) Any return of the security is to be made to the person who lodged the security.

(3) In order to make arrangements for a return of the security, the Secretary of State must be satisfied that—

(a)the quota goods specified in the licence have been released under the free-circulation procedure; and

(b)the release under the free-circulation procedure has taken place within the period of validity of the licence.

(4) Evidence of the release of the goods under the free-circulation procedure may include—

(a)a Customs declaration showing that the free-circulation procedure has been applied to the goods and containing a reference to the licence holder or transferee as declarant; or

(b)the used import licence endorsed by an HMRC officer (whether made available in electronic form or otherwise) showing that the free-circulation procedure has been applied to the goods.

(5) If the Secretary of State is satisfied that the quantity of goods released under the free-circulation procedure by the end of the period of validity of the licence is—

(a)between 95% and 100% of the quantity of the goods specified in the licence, the entire amount of the security must be returned to the person who lodged the security;

(b)between 5% and less than 95% of the quantity of the goods specified in the licence, the same percentage of the security must be returned to the person who lodged the security as the percentage of goods which were released under the free-circulation procedure;

(c)less than 5% of the quantity of the goods specified in the licence, the whole security is forfeit.

(6) Where the amount of security which would be forfeit under paragraph (5)(b) or (c) is £100 or less, the Secretary of State may return the entire amount of the security.

(7) If a person has not released under the free-circulation procedure a quantity of the quota goods to be imported under the licence, and the failure to release the goods was caused by abnormal and unforeseeable circumstances beyond that person’s control, the person who lodged the security may make representations to that effect to the Secretary of State at any time following the grant of the licence, but in any event no later than 45 days after the end of the period of validity of the licence.

(8) The Secretary of State, having regard to any representations so submitted—

(a)may return to the person who lodged the security such further percentages of the security as the Secretary of State considers appropriate; or

(b)in the case of a licence referred to in regulation 35(4) which has not expired, may in the alternative extend the period of the validity of the licence by such a period as the Secretary of State considers appropriate, so long as the period of validity of the licence does not extend beyond the quota close date of the quota period for the tariff concerned.

(9) Where, after the period for making representations to the Secretary of State under paragraph (7) has elapsed, the Secretary of State decides that any security is forfeited under paragraph (5)(b) or (c), the person who lodged the security must be so notified.

(10) The Secretary of State must give reasons for the decision and inform the person of the right to appeal against the decision under regulation 43.

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