The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made by the Treasury primarily under the Taxation (Cross-border Trade) Act 2018 (c. 22) (“the Act”) as amended by the Taxation (Post-transition Period) Act 2020.

Regulation 1 provides for citation, commencement and effect. Regulation 1(2) provides that regulations 3, 6 and 11 are commenced at the same time as provisions referred to in Article 23(4) of Decision No 1/2023 of the Joint Committee of the Union and the United Kingdom of Great Britain and Northern Ireland signed on 24th March 2023 apply in accordance with that Article. The commencement provisions for regulations 4, 5 and 7 to 15 reflect the commencement of the Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629) which inserted Chapter 5 into the Principal Regulations. Chapter 5 was commenced for certain purposes by those Regulations and for further purposes by the Customs (Northern Ireland) (EU Exit) Regulations 2020 (Appointed Day) Regulations 2021 (S.I. 2021/983). Regulation 1(4) prevents any retrospection in relation to the amendment to regulation 16P(5)(a) which relates to interest payable on relief that is recovered.

Regulations 2 to 18 amend the Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605) (“the Principal Regulations”).

Regulation 3 replaces references to Joint Committee Decision No 4/2020(1) with a reference to Joint Committee Decision No 1/2023 which repeals and replaces the earlier Decision. Regulations 6 and 11 make consequential amendments so that relief from duty under section 30A(3) of the Act is determined by reference to the status of the goods in accordance with the Joint Committee Decision that applied at the time the liability to duty was incurred.

Regulations 4, 5, 7 to 10 and 12 to 18 make amendments to Chapter 5 of Part 2 of the Principal Regulations relating to claims for relief from duty due under section 30A or 40A of the Taxation (Cross-border Trade) Act 2018. Regulation 4 inserts definitions of “undertaking lead” and “single undertaking” (which is defined by reference to relevant EU Regulations). Regulation 5 inserts new regulation 16CA to provide for the appointment of an undertaking lead. Regulation 7 amends regulation 16E to impose eligibility requirements in relation to the undertaking lead before any claim for relief can be made under Chapter 5. Regulations 8 and 9 amend a heading and make amendments in relation to waivers of eligibility criteria so that a waiver from certain eligibility criteria can also be granted when a claimant is not registered with HMRC. Regulation 10 amends regulation 16G in relation to making a claim for relief to introduce a requirement to notify the undertaking lead, amends the time limit for making a claim where the amount of duty is appealed, makes further provision for cases where no claim can be made and where HMRC can consent to a claim. Regulation 12 amends regulation 16J to correct an error and make amendments in relation to notifications to be given in respect of claims. Regulation 13 amends regulation 16M to make consequential amendments in relation to the undertaking lead. Regulation 14 amends regulation 16P to amend the date from which interest begins to run where relief is to be repaid and updates a reference to a Commission Regulation. Regulation 15 inserts new regulation 16PA to allow recovery of relief from persons who benefitted from the relief other than the claimant. Regulations 16 and 17 make consequential amendments. Regulation 18 inserts new regulation 16SA to impose obligations on the undertaking lead in relation to provision of information.

Regulation 19 amends the Customs (Crown Dependencies Customs Union) (EU Exit) Regulations 2019 (S.I. 2019/385) to correct an error and allow a person established in one of the Crown Dependencies to be appointed as an undertaking lead and to allow relief agents established in one of the Crown Dependencies to make claims for relief under Chapter 5 of Part 2 of the Principal Regulations on behalf of eligible persons.

Regulation 20 corrects an error and makes consequential amendments to the Customs (Contravention of a Relevant Rule) Regulations 2003 (S.I. 2003/3113) in relation to penalties.

The notices referred to in regulations 16CA and 16SA of the Principal Regulations, inserted by regulations 5 and 18 respectively, 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 by inspection free of charge at HMRC, 100 Parliament Street, London SW1A 2BQ.

A Tax Information and Impact Note (TIIN) covering this instrument will be published on the GOV.UK website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.

(1)

Decision 4/2020 of the Joint Committee established under the EU withdrawal agreement of 17th December 2020. Available electronically from https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/949846/Decision_of_the_Withdrawal_Agreement_Joint_Committee_on_the_determination_of_goods_not_at_risk.pdf and otherwise by inspection free of charge at HMRC, 100 Parliament Street, London SW1A 2BQ.