PART 3Fulfilment businesses
I148Carrying on a third country goods fulfilment business
1
For the purposes of this Part a person carries on a third country goods fulfilment business if the person, by way of business—
a
stores third country goods which are owned by a person who is not established in a Member State, or
b
stores third country goods on behalf of a person who is not established in a Member State,
at a time when the conditions in subsection (2) are met in relation to the goods.
2
The conditions are that—
a
there has been no supply of the goods in the United Kingdom for the purposes of VATA 1994, and
b
the goods are being offered for sale in the United Kingdom or elsewhere.
3
But a person does not carry on a third country goods fulfilment business if the person's activities within subsection (1) are incidental to the carriage of the goods.
4
Goods are “third country” goods if they have been imported from a place outside the Member States within the meaning of section 15 of VATA 1994.
5
Whether a person is established in a Member State is to be determined in accordance with Article 10 of Council Implementing Regulation (EU) No 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC on the common system of value added tax.
I249Requirement for approval
1
A person may not carry on a third country goods fulfilment business otherwise than in accordance with an approval given by the Commissioners under this section.
2
The Commissioners may approve a person to carry on a third country goods fulfilment business only if they are satisfied that the person is a fit and proper person to carry on the business.
3
The Commissioners may approve a person to carry on a third country goods fulfilment business for such periods and subject to such conditions or restrictions as they may think fit or as they may by regulations made by them prescribe.
4
The Commissioners may at any time for reasonable cause vary the terms of, or revoke, an approval under this section.
5
In this Part “approved person” means a person approved under this section to carry on a third country goods fulfilment business.
I350Register of approved persons
1
The Commissioners must maintain a register of approved persons.
2
The register is to contain such information relating to approved persons as the Commissioners consider appropriate.
3
The Commissioners may make publicly available such information contained in the register as they consider necessary to enable those who deal with a person who carries on a third country goods fulfilment business to determine whether the person in question is an approved person in relation to that activity.
4
The information may be made available by such means (including the internet) as the Commissioners consider appropriate.
I451Regulations relating to approval, registration etc.
1
The Commissioners may by regulations make provision—
a
regulating the approval and registration of persons under this Part,
b
regulating the variation or revocation of any such approval or registration, or of any condition or restriction to which such an approval or registration is subject,
c
about the register maintained under section 50,
d
regulating the carrying on of a third country goods fulfilment business, and
e
imposing obligations on approved persons.
2
The regulations may, in particular, make provision—
a
requiring applications, and other communications with the Commissioners, to be made electronically;
b
as to the procedure for the approval and registration of bodies corporate which are members of the same group;
c
requiring approved persons to keep and make available for inspection such records as may be prescribed by or under the regulations.
I552Disclosure of information by HMRC
1
The Commissioners may disclose to an approved person information held by Her Majesty's Revenue and Customs in connection with a function of Her Majesty's Revenue and Customs, but only for the purpose mentioned in subsection (2).
2
The purpose is to assist the approved person in complying with obligations imposed on that person by virtue of section 51.
3
An approved person to whom information is disclosed under subsection (1)—
a
may use the information only for the purpose of complying with obligations imposed on that person by virtue of section 51, and
b
may not further disclose the information except with the consent of the Commissioners.
4
Section 19 of the Commissioners for Revenue and Customs Act 2005 (offence) applies to a disclosure in contravention of subsection (3)(b) as it applies to a disclosure, in contravention of section 20(9) of that Act, of revenue and customs information relating to a person whose identity is specified in the disclosure or can be deduced from it.
I653Offence
1
A person who—
a
carries on a third country goods fulfilment business, and
b
is not an approved person,
commits an offence.
2
In proceedings for an offence under subsection (1) it is a defence to show that the person did not know, and had no reasonable grounds to suspect, that the person—
a
was carrying on a third country goods fulfilment business, or
b
was not an approved person.
3
A person is taken to have shown the fact mentioned in subsection (2) if—
a
sufficient evidence of that fact is adduced to raise an issue with respect to it, and
b
the contrary is not proved beyond reasonable doubt.
4
A person guilty of an offence under this section is liable on summary conviction—
a
in England and Wales, to imprisonment for a term not exceeding 12 months, or a fine, or both;
b
in Scotland, to imprisonment for a term not exceeding 12 months, or a fine not exceeding the statutory maximum, or both;
c
in Northern Ireland, to imprisonment for a term not exceeding 6 months, or a fine not exceeding the statutory maximum, or both.
5
A person guilty of an offence under this section is liable on conviction on indictment to—
a
imprisonment for a period not exceeding 7 years,
b
a fine, or
c
both.
6
In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003 the reference in subsection (4)(a) to 12 months is to be read as a reference to 6 months.
I754Forfeiture
1
If a person—
a
carries on a third country goods fulfilment business, and
b
is not an approved person,
any goods within subsection (2) are liable to forfeiture under CEMA 1979.
2
Goods are within this subsection if—
a
they are stored by the person, and
b
their storage by the person constitutes, or has constituted, the carrying on of a third country goods fulfilment business by the person.
I855Penalties
1
Schedule 13 provides for a penalty to be payable by a person who carries on a third country goods fulfilment business and is not an approved person.
2
The Commissioners may make regulations (“penalty regulations”) imposing a penalty for the contravention of—
a
any condition or restriction imposed under this Part;
b
regulations under this Part.
3
The amount of a penalty imposed by the penalty regulations is to be specified in the regulations, but must not exceed £3,000.
4
The penalty regulations may make provision for the assessment and recovery of a penalty imposed by the regulations.
5
The Commissioners may by regulations make provision for corporate bodies which are members of the same group to be jointly and severally liable for any penalties imposed under—
a
Schedule 13;
b
penalty regulations.
I956Appeals
1
FA 1994 is amended as follows.
2
In section 13A(2) (customs and excise reviews and appeals: relevant decisions) after paragraph (gb) insert—
gc
any decision by HMRC that a person is liable to a penalty, or as to the amount of a person's liability, under—
i
regulations under section 55 of the Finance (No. 2) Act 2017, or
ii
Schedule 13 to that Act;
3
In Schedule 5 to that Act (decisions subject to review and appeal) after paragraph 9A insert—
9BThe Finance (No. 2) Act 2017
Any decision for the purposes of Part 3 of the Finance (No. 2) Act 2017 (third country goods fulfilment businesses) as to—
a
whether or not, and in which respects, any person is to be, or to continue to be, approved and registered, or
b
the conditions or restrictions subject to which any person is approved and registered.
I1057Regulations
1
Regulations under this Part may—
a
make provision which applies generally or only for specified cases or purposes;
b
make different provision for different cases or purposes;
c
include incidental, consequential, transitional or transitory provision;
d
confer a discretion on the Commissioners;
e
make provision by reference to a notice to be published by the Commissioners.
2
Regulations under this Part are to be made by statutory instrument.
3
A statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons.
4
This section does not apply to regulations under section 59 (commencement).
I1158Interpretation
1
In this Part—
“approved person” has the meaning given by section 49(5);
“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.
2
For the purposes of this Part two or more bodies corporate are members of a group if—
a
one of them controls each of the others,
b
one person (whether a body corporate or an individual) controls all of them, or
c
two or more individuals carrying on a business in partnership control all of them.
3
A body corporate is to be taken to control another body corporate if—
a
it is empowered by or under legislation to control that body's activities, or
b
it is that body's holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006.
4
An individual or individuals are to be taken to control a body corporate if the individual or individuals (were the individual or individuals a company) would be that body's holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006.
I1259Commencement
1
This Part comes into force—
a
so far as it confers powers to make regulations, on the day on which this Act is passed, and
b
for all other purposes, on such day as the Commissioners may by regulations made by statutory instrument appoint.
2
Regulations under subsection (1)(b) may appoint different days for different purposes.