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

Declaration of independence

32.—(1) Where this regulation applies, a declaration of independence must be made by the applicant containing—

(a) a declaration that the applicant is not linked with any other person applying to the Secretary of State in respect of the same quota; or

(b) if the applicant is linked with another person applying to the Secretary of State in respect of the same quota, a declaration to that effect identifying the linked person and providing evidence that the applicant regularly engages in substantial economic activities with other third parties.

(2) An applicant is linked with another person if the applicant—

(a) has close business links with that person;

(b) has family ties with that person; or

(c) has an important business relationship with that person.

(3) In this regulation—

(a) a person (A) has “close business links” with another person (B) if—

(i) B is a parent undertaking of A;

(ii) B is a subsidiary undertaking of A;

(iii) B is a parent undertaking of a subsidiary undertaking of A;

(iv) B is a subsidiary undertaking of a parent undertaking of A;

(v) B owns or controls 25% or more of the voting rights or capital of A; or

(vi) A owns or controls 25% or more of the voting rights or capital of B,

and for the purposes of this paragraph, “subsidiary undertaking” and “parent undertaking” have the meanings given in section 1162 of the Companies Act 2006, as read with Schedule 7 to that Act(1);

(b) having “family ties” with another applicant means—

(i) the applicants are spouses or civil partners, or are living together as spouses or as if they were civil partners; or

(ii) the applicant is the brother, sister, parent, child or grandchild of another applicant;

(c) “important business relationship” includes a relationship where—

(i) the applicants are employer and employee;

(ii) the applicants are partners in a partnership, or officers or directors in the same undertaking;

(d) “substantial economic activities” means activities carried out by the applicant relating to the production, distribution or consumption of goods and services, which are not carried out for the sole purpose of applying for quotas.

(4) For the purpose of assessing whether the applicant regularly engages in substantial economic activities with other third parties, the Secretary of State must take into account the character of the economic activities carried out by the applicant, the expenditure made, and the sales and turnover of the applicant.

(5) The Secretary of State must take into account any documents or evidence submitted in support of the applicant’s declaration of independence with a view to determining the validity of the declaration.

(6) A valid declaration of independence remains in force for the purpose of any subsequent licence application in respect of the quota concerned, subject to any determination made by the Secretary of State under paragraph (8).

(7) If any change of circumstances occurs affecting a valid declaration of independence, the operator must notify the Secretary of State of the particulars of the change within 10 days of the change.

(8) Where particulars of the change are notified under paragraph (7), the Secretary of State must determine whether the effect of the change is such that the declaration of independence is no longer in force and notify the operator accordingly.

(1)

2006 c. 46.