The Trade Preference Scheme (Developing Countries Trading Scheme) Regulations 2023

PART 5 Customs cooperation and proof of origin conditions

Customs conditions for DCTS

16.—(1) The Secretary of State may publish a notice providing that the application of the DCTS rate is subject to conditions relating to customs cooperation and verification of proof of origin (a “customs cooperation notice”).

(2) A condition referred to in paragraph (1) may require a qualifying DCTS country to—

(a) provide HMRC with up-to-date stamps or documents used in its territory to verify the origin of DCTS goods;

(b) maintain electronic systems to establish or identify the origin of DCTS goods;

(c) approve persons for the purposes of verifying DCTS origin requirements;

(d) take steps to implement and enforce DCTS origin requirements effectively;

(e) take steps to combat customs fraud effectively;

(f) implement and enforce systems to ensure that compliance with origin requirements relating to cumulation can be verified;

(g) cooperate with the customs authorities of other countries, for purposes relating to cumulation;

(h) communicate to HMRC how that country has implemented DCTS origin requirements;

(i) assist HMRC to investigate contravention of DCTS origin requirements;

(j) cooperate with HMRC on matters of mutual concern for purposes specified in section 8B(1)(a) to (c) of the Customs and Excise Management Act 1979(1);

(k) allow reasonable access to documents or data (including in electronic form) for HMRC to carry out investigations.

(3) Such conditions may also include those relating to—

(a) the form of a binding undertaking that the Secretary of State may require a qualifying DCTS country to give for purposes referred to in sub-paragraph (b);

(b) the persons to whom that undertaking must be given, being—

(i) the Secretary of State or HMRC, for the purposes of customs cooperation with and verification of proof of origin to HMRC;

(ii) the customs authorities of other countries, for the purposes of customs cooperation and verification of proof of origin relating to cumulation with such countries.

(4) In this regulation, reference to “DCTS origin requirements” means those requirements that—

(a) are set out in the COCGDCTS Regulations, to determine the place of origin of qualifying DCTS goods;

(b) are imposed on persons claiming a DCTS rate on qualifying DCTS goods;

(c) involve verification or oversight by DCTS countries involved in export of, or cumulation related to, those goods.

(5) Where a qualifying DCTS country is seriously and systematically failing to comply with the conditions specified in a customs cooperation notice, the Secretary of State may publish—

(a) a suspension notice to—

(i) suspend a qualifying DCTS country from the DCTS, or

(ii) suspend the DCTS rate on specified DCTS goods originating from a qualifying DCTS country, or

(b) a variation notice to vary the DCTS rate on specified DCTS goods originating from a qualifying DCTS country.

(6) The Secretary of State must follow the warning and assessment procedure set out in regulation 21 before publishing a notice under paragraph (5).

(1)

1979 c. 2, inserted by section 20(1) of the European Union (Future Relationship) Act 2020 (c. 29).