The Customs (Import Duty) (EU Exit) Regulations 2018 No. 1248

PART 7 U.K. Remission and repayment of import duty

Modifications etc. (not altering text)

C1 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.

CHAPTER 4 U.K. Post-application

Meaning of “application” U.K.

60.  In this chapter and the following chapters of this Part, “ application” means an application for remission or repayment of duty, or both, as the case may be.

Commencement Information

I1 Reg. 60 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Inspection of goods U.K.

61.—(1) Subject to paragraphs (2) and (3), in respect of the goods stated in the application, the applicant must—

(a) ensure that the goods are available for inspection by an HMRC officer on reasonable notice; and

(b) except where the goods have been inspected by an HMRC officer and no further inspection is required, notify HMRC in advance if the applicant intends to move the location of the goods and notify the intended new location.

(2) Where the goods stated in the application are destroyed or dismantled further to a consent given under regulation 62(6)(a), paragraph (1) applies instead to any remains or components of the goods.

(3) Paragraph (1) does not apply where—

(a) the goods, or the remains or components of the goods, are removed from the United Kingdom further to a consent given under regulation 62(6)(b) or (7); or

(b) the goods are declared for an inward processing [F1 , transit] or storage procedure further to a consent given under regulation 62(6)(c).

Textual Amendments

F1 Words in reg. 61(3)(b) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1346), regs. 1(2), 2(11); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I2 Reg. 61 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Determinations to grant applications U.K.

62.—(1) HMRC may determine to grant an application if it is satisfied that—

(a) the application has been made in compliance with chapter 3;

(b) the reduced duty case stated in the application applies; and

(c) incorrect or incomplete information which was deliberately misleading such as to enable the application to be made was not provided to HMRC by a person responsible for complying with the Customs procedures relevant to the goods stated in the application.

(2) In the case of an application for remission, the grant of the application does not, unless the determination provides otherwise, discharge the liability of a person who was not an applicant.

(3) An application may be granted—

(a) in the case of a joint application, other than to all the applicants;

(b) to remit a liability or to make a repayment of an amount different to that stated in the application, so long as the amount does not exceed that provided by the applicable reduced duty case;

(c) in respect of—

(i) fewer goods than stated in the application; or

(ii) remains or components of the goods stated in the application, in cases where the goods are, or are to be, destroyed or dismantled; or

(d) subject to the compliance with conditions, including that any of the goods stated in the application, or components of them, must be destroyed or dismantled.

(4) Except for the conditions set out in regulation 67, where an application is granted subject to compliance with conditions, they may be varied or waived by HMRC.

(5) Paragraph (6) applies—

(a) where an application concerns the reduced duty case described in regulation 51; and

(b) before HMRC—

(i) accepts or rejects the application under regulation 63; or

(ii) determines the application under regulation 64.

(6) HMRC may consent on request by the applicant to the goods stated in the application being—

(a) destroyed or dismantled;

(b) removed from the United Kingdom in accordance with the applicable export provisions M1 [F2 where the removal is from Great Britain, and in accordance with Union customs legislation where the removal is from Northern Ireland]; F3 ...

[F4 (ba) removed from Great Britain to Northern Ireland; or]

(c) declared for an inward processing [F5 , transit] or storage procedure but such a consent is not an authorisation to make the declaration.

[F6 (7) Where HMRC consents to the destruction or dismantling of the goods it may also consent to—

(a) the removal from the United Kingdom of any remains or components of the goods in accordance with the applicable export provisions where the removal is from Great Britain, and in accordance with Union customs legislation where the removal is from Northern Ireland; or

(b) the removal of any remains or components of the goods from Great Britain to Northern Ireland.]

Textual Amendments

F2 Words in reg. 62(6)(b) inserted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 37(4)(a)(i); S.I. 2020/1643, reg. 2, Sch.

F3 Word in reg. 62(6)(b) omitted (31.12.2020) by virtue of The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 37(4)(a)(ii); S.I. 2020/1643, reg. 2, Sch.

F4 Reg. 62(6)(ba) inserted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 37(4)(a)(ii); S.I. 2020/1643, reg. 2, Sch.

F5 Words in reg. 62(6)(c) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1346), regs. 1(2), 2(12); S.I. 2020/1643, reg. 2, Sch.

F6 Reg. 62(7) substituted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 37(4)(b); S.I. 2020/1643, reg. 2, Sch.

Modifications etc. (not altering text)

C2 Reg. 62 modified (31.12.2020) by The Customs (Crown Dependencies Customs Union) (EU Exit) Regulations 2019 (S.I. 2019/385), regs. 1(2), 5(10) (with reg. 2); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I3 Reg. 62 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M1 Section 35 defines for the purposes of Part 1 of the Act what is meant by an export of goods from the United Kingdom being in accordance with the applicable export provisions.

Acceptance and rejection U.K.

63.—(1) By no later than 30 days after the date on which an application is received by HMRC, HMRC must notify the applicant that the application—

(a) has been made in accordance with chapter 3 and is accepted; or

(b) is rejected for the reasons set out in the notification.

(2) If an acceptance or rejection is not made as required by paragraph (1), the application is deemed to be rejected.

Commencement Information

I4 Reg. 63 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Determinations U.K.

64.—(1) Where an application is accepted under regulation 63(1)(a), HMRC must notify the applicant that it has—

(a) determined to grant the application (in whole or part); or

(b) determined to refuse the application.

(2) Where—

(a) paragraph (1)(a) applies, the notification must include details of—

(i) how the amount of reduced duty has been calculated; and

(ii) such of the matters, if any, set out in regulation 62(3) as are applicable to the case;

(b) paragraph (1)(b) applies, the notification must state the reasons for the refusal.

(3) A determination to grant the application (in whole or part)—

(a) which is not made subject to compliance with conditions, has effect on the date of the determination;

(b) which is made subject to compliance with conditions, has effect once HMRC is satisfied that the conditions have been complied with.

(4) Where paragraph (3)(b) applies and HMRC is not so satisfied—

(a) HMRC must as soon as practicable notify the applicant that the application is treated as withdrawn; and

(b) no further application may be made in relation to the goods to which the withdrawn application applied.

(5) A notification of determination under paragraph (1) must be made by no later than the expiry of—

(a) the period of 120 days beginning with the day after the date of the acceptance of the application; or

(b) an extended period, not exceeding 30 days, beginning with the day when the period of 120 days expires, where HMRC needs an extension in order to reach a determination.

(6) HMRC must notify the applicant within the period of 120 days of any such extended period which it needs.

(7) Where HMRC fails to reach a determination in accordance with paragraph (5), the application is deemed to be refused.

(8) Where the application is an application for repayment of duty, HMRC must pay to the applicant the amount it has determined as a repayment as soon as practicable after the determination has effect.

Commencement Information

I5 Reg. 64 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Where rejection or refusal is required U.K.

65.—(1) Paragraph (4) applies where—

(a) the applicant has failed without reasonable excuse to comply with regulation 61(1);

(b) HMRC is not satisfied that the goods which are the subject of the application are the same as those in respect of which the liability to import duty was incurred; or

(c) except where paragraph (3) applies, in the reduced duty case described in regulation 51, the goods are sold after the application is made.

(2) It is not a reasonable excuse to fail to comply with regulation 61(1) by virtue that the goods or the remains or components of the goods are—

(a) except as provided by regulation 61(2), destroyed or dismantled; or

(b) removed from the United Kingdom.

(3) Paragraph (1)(c) does not apply where the goods are sold after the goods are removed from the United Kingdom or declared for an inward processing [F7 , transit] or storage procedure, further to consent given under regulation 62(6)(c).

(4) HMRC must reject the application under regulation 63(1)(b) or refuse the application under regulation 64(1)(b) as soon as practicable after it becomes aware of the occurrence of a matter in paragraph (1).

Textual Amendments

F7 Words in reg. 65(3) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1346), regs. 1(2), 2(13); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I6 Reg. 65 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Lower rate of import duty available: required rejection U.K.

66.—(1) This regulation applies where—

(a) an application concerns the reduced duty case described in regulation 50;

(b) a Customs declaration for the free-circulation procedure was made in respect of the goods stated in the application; and

(c) a lower rate of duty was available by virtue of provision made under any of sections 9 to 12 of the Act.

(2) Except where paragraph (3) applies, the application must be rejected where, at the date the application is made, a lower rate of import duty can no longer be applied to the goods by virtue of provision made under any of sections 9 to 12 of the Act.

(3) Where the reason that such a lower rate of import duty was not applied at the time the declaration for free-circulation of the goods was accepted was because of a failure by HMRC, the application is not required to be rejected if the Customs declaration which was accepted contained all the information necessary to have enabled HMRC to apply the lower rate of duty.

Commencement Information

I7 Reg. 66 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Defective and non-compliant chargeable goods: required conditions U.K.

67.—(1) This regulation applies where—

(a) an application concerns the reduced duty case described in regulation 51; and

(b) a determination is made to grant the application (in whole or part).

(2) Subject to paragraph (3), the determination must—

(a) impose a condition that the goods—

(i) are destroyed or dismantled;

(ii) are removed from the United Kingdom in accordance with the applicable export provisions [F8 where the removal is from Great Britain, and in accordance with Union customs legislation where the removal is from Northern Ireland]; or

(iii) are [F9 declared for] an inward processing [F10 , transit] or storage procedure but such a condition is not an authorisation to make a declaration for the procedure; and

(b) state a period for compliance with the condition imposed, being a period of no longer than 60 days beginning with the date of the determination.

(3) Paragraph (2) does not apply if one of the matters in paragraph (2)(a) has occurred before the time of the determination further to a consent given under regulation 62(6).

Textual Amendments

F8 Words in reg. 67(2)(a)(ii) inserted (31.12.2020) by The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605), regs. 1(1), 37(5); S.I. 2020/1643, reg. 2, Sch.

F9 Words in reg. 67(2)(a)(iii) substituted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1346), regs. 1(2), 2(14)(a); S.I. 2020/1643, reg. 2, Sch.

F10 Words in reg. 67(2)(a)(iii) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1346), regs. 1(2), 2(14)(b); S.I. 2020/1643, reg. 2, Sch.

Modifications etc. (not altering text)

C3 Reg. 67(2)(a)(ii) modified (31.12.2020) by The Customs (Crown Dependencies Customs Union) (EU Exit) Regulations 2019 (S.I. 2019/385), regs. 1(2), 5(11) (with reg. 2); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I8 Reg. 67 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

[F11 Goods which cease to be chargeable goods U.K.

67A.— (1) Subject to paragraph (3), goods are to be regarded as chargeable goods from the date of the determination to grant an application (in whole or in part) where—

(a) it is a condition of the determination that the goods be declared for an inward processing, transit or storage procedure; and

(b) the goods stated in the application have ceased to be chargeable goods.

(2) Subject to paragraph (4), goods are to be regarded as chargeable goods from the date any consent is given by HMRC under regulation 62(6)(c) where—

(a) a request has been made under regulation 62(6)(c); and

(b) the goods stated in the application have ceased to be chargeable goods.

(3) Paragraph (1) does not apply where—

(a) a notification under regulation 64(4)(a) is issued; or

(b) the determination is treated as null and void in accordance with regulation 69(2).

(4) Paragraph (2) does not apply where—

(a) HMRC rejects the application under regulation 63;

(b) HMRC determines to refuse the application under regulation 64; or

(c) the determination is treated as null and void in accordance with regulation 69(2).]

Textual Amendments

F11 Reg. 67A inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/1346), regs. 1(2), 2(15); S.I. 2020/1643, reg. 2, Sch.

Interest payable by HMRC U.K.

68.—(1) Paragraph (2) applies where—

(a) an application for repayment of duty is made;

(b) a period of 30 working days has expired since the date that a determination to grant the application has effect as provided by regulation 64(3);

(c) HMRC has failed to pay some or all of the repayment; and

(d) that failure is substantially the fault of HMRC.

(2) HMRC must pay interest at the applicable rate on the amount of the unpaid repayment for the period—

(a) beginning with the day after the date on which the 30 working days period described in paragraph (1)(b) expires; and

(b) ending with the date on which the amount is paid in full.

(3) In paragraph (2), “the applicable rate” means the rate of interest provided by regulations for the purposes of section 197(2)(f) of the Finance Act 1996 M2 .

Commencement Information

I9 Reg. 68 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M2 1996 c. 8. At the time these Regulations are made, the rate is provided by regulation 5(1)(e) of S.I. 1998/1461 as 5% per annum. Regulation 5 was substituted by S.I. 2001/631 and regulation 5(1)(e) amended by S.I. 2003/230.