PART XVIIMPORTATIONS, EXPORTATIONS AND REMOVALS
Interpretation of Part XVII1117
—
1
In regulation 127 “approved inland clearance depot” means any inland premises approved by the Commissioners for the clearance of goods for customs and excise purposes.
2
For the purposes of regulation 128 “container” means an article of transport equipment (lift-van, moveable tank or other similar structure)—
a
fully or partially enclosed to constitute a compartment intended for containing goods,
b
of a permanent character and accordingly strong enough to be suitable for repeated use,
c
specially designed to facilitate the carriage of goods, by one or more modes of transport, without intermediate reloading,
d
designed for ready handling, particularly when being transferred from one mode of transport to another,
e
designed to be easy to fill and to empty, and
f
having an internal volume of one cubic metre or more,
and the term “container” shall include the accessories and equipment of the container, appropriate for the type concerned, provided that such accessories and equipment are carried with the container, but shall not include vehicles, accessories or spare parts of vehicles, or packaging.
F53
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F24
In F18regulation 131 “goods” does not include—
a
a motor-vehicle, or
b
a boat intended to be exported under its own power.
F35
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F36
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
For the purposes of regulation 129 “overseas authority” means any country other than the United Kingdom or any part of or place in such a country or the government of any such country, part or place.
F47A
In F19regulation and 131 the words “overseas visitor” refer to a traveller who is not established within the member States.
7B
For the purposes of paragraph (7A) above, a traveller is not established within the member States only if that traveller’s domicile or habitual residence is situated outside the member States.
7C
Solely for the purposes of paragraph (7B) above, the traveller’s domicile or habitual residence is the place entered as such in a valid–
a
identity document,
b
identity card, or
c
passport.
7D
A document referred to in sub-paragraph (a), (b) or (c) of paragraph (7C) above is valid for the purposes of that paragraph only if–
a
it is so recognised by the Commissioners; and
b
it is not misleading as to the traveller’s true place of domicile or habitual residence.
8
In F6regulation 132 “overseas visitor” means a person who, during the 2 years immediately preceding F7... the date of the application mentioned in regulation 132, has not been in the member States for more than 365 days, or who, F7... during the 6 years immediately preceding the date of the application has not been in the member States for more than 1,095 days.
F209
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
In regulations 140 and 144 “customs territory of the Community” has the same meaning as it has for the purposes of Council Regulation (EEC) No. 2913/9215.
F2611
In this Part references to Council Regulation (EEC) No 2913/92 (Community Customs Code) and Commission Regulation (EEC) No 2454/93 (which contains provisions implementing the Community Customs Code) shall be read as references to those instruments as amended by the Act concerning the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic, signed at Athens on 16th April 2003.
Enactments exceptedI2118
There shall be excepted from the enactments which are to apply as mentioned in section 16(1) of the Act—
a
the Alcoholic Liquor Duties Act 197916—
i
section 7 (exemption from duty on spirits in articles used for medical purposes),
ii
section 8 (repayment of duty on spirits for medical or scientific purposes),
iii
section 9 (remission of duty on spirits for methylation),
iv
section 10 (remission of duty on spirits for use in art or manufacture),
v
section 22(4) (drawback on exportation of tinctures or spirits of wine), and
vi
sections 42 and 43 (drawback on exportation and warehousing of beer),
b
the Hydrocarbon Oil Duties Act 197917—
i
section 9 (relief for certain industrial uses),
ii
section 15 (drawback of duty on exportation etc. of certain goods),
iii
section 16 (drawback of duty on exportation etc. of power methylated spirits),
iv
section 17 (repayment of duty on heavy oil used by horticultural producers),
v
section 18 (repayment of duty on fuel for ships in home waters),
vi
section 19 (repayment of duty on fuel used in fishing boats etc.),
vii
section 20 (relief from duty on oil contaminated or accidentally mixed in warehouse), and
viii
section 20AA (power to allow reliefs),
c
the Customs and Excise Management Act 197918—
i
section 43(5) (provisions as to duty on re-imported goods),
ii
section 125(1) and (2) (valuation of goods for the purpose of ad valorem duties),
iii
section 126 (charge of excise duty on manufactured or composite imported articles), and
iv
section 127(1)(b) (determination of disputes as to duties on imported goods),
d
the Customs and Excise Duties (General Reliefs) Act 197919 other than sections 8 and 9(b),
e
f
g
the Finance Act 1999, sections 126 and 127 (interest on unpaid customs debts and on certain repayments relating to customs duty)
F11Regulations excepted119
The provision made by or under the following subordinate legislation shall be excepted from applying as mentioned in section 16(1) of the Act–
a
regulations 16(4) and (5) and 19(1)(b) of the Excise Warehousing (Etc) Regulations 1988 (certain removals from warehouse);
b
any regulations made under section 197(2)(f) of the Finance Act 1996 (rate of interest on overdue customs duty and on repayments of amounts paid by way of customs duty).
Community legislation exceptedI3120
—
1
Council Regulation (EEC) No. 918/8323 on conditional reliefs from duty on the final importation of goods, and any implementing Regulations made thereunder shall be excepted from the Community legislation which is to apply as mentioned in section 16(1) of the Act.
2
The following Articles shall be excepted from the Community legislation which is to apply as mentioned in section 16(1) of the Act—
a
in Council Regulation (EEC) No. 2913/9224 establishing the Community Customs Code—
i
Articles 126 to 128 (drawback system of inward processing relief),
F17ii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
Article 137 so far as it relates to partial relief on temporary importation, and Article 142,
iv
Articles 145 to 160 (outward processing),
v
Articles 185 to 187 (returned goods), F12...
vi
Article 229(b) (interest payable on a customs debt),
F13vii
Articles 232(1)(b), (2) and (3) (interest on arrears of duty), and
viii
Article 241, second and third sentences only (interest on certain repayments by the authorities),
F25b
in Commission Regulation (EEC) No 2454/93 which contains provisions implementing the Community Customs Code—
i
Articles 496 to 523, Articles 536 to 544 and Article 550 (but only to the extent that these Articles apply to the drawback system of inward processing relief),
ii
Article 519 (compensatory interest),
iii
Articles 585 to 592 (outward processing) (and Articles 496 to 523 to the extent that they are relevant to outward processing),
iv
Articles 844 to 856 and Article 882 (returned goods).
3
Council Regulation (EEC) No. 2658/8726 on the tariff and statistical nomenclature and on the Common Customs Tariff and implementing Regulations made thereunder (end use relief), save and in so far as the said Regulations apply to goods admitted into territorial waters—
a
in order to be incorporated into drilling or production platforms, for purposes of the construction, repair, maintenance, alteration or fitting-out of such platforms, or to link such drilling or production platforms to the mainland of the United Kingdom, or
b
for the fuelling and provisioning of drilling or production platforms,
shall be excepted from the Community legislation which is to apply as mentioned in section 16(1) of the Act.
F14Adaptations121
1
The provision made by the following enactments shall apply, as mentioned in section 16(1) of the Act, subject to the adaptations prescribed by this regulation.
2
Section 125(3) of the Customs and Excise Management Act 1979 (valuation of goods) shall have effect as if the reference to the preceding subsections of that section included a reference to section 21 of the Act.
3
Section 129 of the Finance Act 1999 (recovery of certain amounts by the Commissioners) shall be regarded as providing for the recovery of a repayment of any relevant VAT (import VAT).
F24121A
1
The application of the Customs Duties (Deferred Payment) Regulations 1976 in relation to any VAT chargeable on the importation of goods from places outside the member States is subject to the following prescribed adaptations.
2
In regulation 4(1) (application for approval), regard “security” as being “appropriate security (which may be nil if there is no risk to the payment)”.
3
In regulation 4(2) (security and payment arrangements), regard there being a second sub-paragraph as follows—
Provided that the amount in question may exceed that of the security in the case of nil security.
4
For regulation 4(3) (variations and revocations of approval), regard any Commissioners' variation consequent on the adaptations prescribed by this regulation as only being able to have effect after 30th November 2003.
5
Before “and” at the end of regulation 8(a) (deemed payment for certain purposes at time deferment granted), regard there being—
aa
Article 74(1) of Council Regulation (EEC) No 2913/92 (Community Customs Code) (no release of goods unless customs debt paid or secured);
121B
1
The application of Council Regulation (EEC) No 2913/92 (Community Customs Code) in relation to any VAT chargeable on the importation of goods from places outside the member States is subject to the following prescribed adaptations.
2
But the adaptation in paragraph (5) only applies to the extent that the Commissioners grant deferment of payment of the relevant VAT with nil security.
3
In Article 218(1) second sub-paragraph (single entry in the accounts), after “secured” regard there being “if required”.
4
In Article 225 first sub-paragraph (deferment of payment conditional on security), after “applicant” regard there being “(but the customs authorities may waive this condition if there is no risk to the payment)”.
5
Regard Article 225 as not being subject to Article 192 (fixing amount of security).
121C
1
The application of Commission Regulation (EEC) No 2454/93 (implementation of Community Customs Code) in relation to any VAT chargeable on the importation of goods from places outside the member States is subject to the following prescribed adaptations.
2
But the adaptations in paragraphs (3) and (4) only apply to the extent that the Commissioners grant deferment of payment of the relevant VAT with nil security.
3
Regard Articles 244, 248(1), 257(3), 257(4), 258, 262(1) and 876a(1) (circumstances in which duties have to be or are taken as having to be secured) as providing that the provision of security is at the discretion of the customs authorities.
4
Regard Articles 244, 248(1), 257(3), 257(4) and 876a(1) (circumstances in which duties have to be secured) as not being subject to Article 192 of Council Regulation (EEC) No 2913/92 (Community Customs Code) (fixing amount of security).
Postal importations by registered persons in the course of businessI4122
Goods imported by post from places outside the member States, other than by datapost packet, not exceeding £2,000 in value, or such greater sum as is determined for the time being by the Commissioners, by a registered person in the course of a business carried on by him may, with the authority of the proper officer, be delivered without payment of VAT if—
a
the registered person has given such security as the Commissioners may require, and
b
his registration number is shown on the customs declaration attached to or accompanying the package,
and save as the Commissioners may otherwise allow he shall account for VAT chargeable on the goods on their importation together with any VAT chargeable on the supply of goods or services by him or on the acquisition of goods by him from another member State in a return furnished by him in accordance with these Regulations for the prescribed accounting period during which the goods were imported.
Temporary importationsI5123
—
1
Subject to such conditions as the Commissioners may impose, the VAT chargeable on the importation of goods from a place outside the member States shall not be payable where—
a
a taxable person makes a supply of goods which is to be zero-rated in accordance with sub-paragraphs (a)(i) and (ii), and (b) of section 30(8) of the Act,
b
the goods so imported are the subject of that supply, and
c
the Commissioners are satisfied that—
i
the importer intends to remove the goods to another member State, and
ii
the importer is importing the goods in the course of a supply by him of those goods in accordance with the provisions of sub-paragraphs (a)(i) and (ii), and (b) of section 30(8) of the Act and any Regulations made thereunder.
2
As a condition of granting the relief afforded by paragraph (1) above the Commissioners may require the deposit of security, the amount of which shall not exceed the amount of VAT chargeable on the importation.
3
The relief afforded by paragraph (1) above shall continue to apply provided that the importer—
a
removes the goods to another member State within one month of the date of importation or within such longer period as the Commissioners may allow, and
b
supplies the goods in accordance with sub-paragraphs (a)(i) and (ii), and (b) of section 30(8) of the Act and any Regulations made thereunder.
Reimportation of certain goods by non-taxable personsI6124
Subject to such conditions as the Commissioners may impose, the VAT chargeable on the importation of goods from a place outside the member States which have been previously exported from the member States shall not be payable if the Commissioners are satisfied that—
a
the importer is not a taxable person or, if he is, the goods are imported otherwise than in the course of his business,
b
the goods were last exported from the member States by him or on his behalf,
c
the goods—
i
were supplied, acquired in or imported into a member State before their export, and any VAT or other tax due on that supply, acquisition or importation was paid and neither has been, nor will be, refunded, or
ii
are imported by the person who made them,
d
the goods were not exported free of VAT by reason of the zero-rating provisions of subsection (6) or (8) of section 30 of the Act or Regulations made thereunder or free of purchase tax or by reason of the provisions of the law of another member State corresponding, in relation to that member State, to those provisions,
e
the goods have not been subject to process or repair outside the member States other than necessary running repairs which did not result in any increase in the value of the goods, and
f
the goods—
i
were at the time of exportation intended to be reimported, or
ii
have been returned for repair or replacement, or after rejection by a customer outside the member States, or because it was not possible to deliver them to such customer, or
iii
were prior to the time of exportation in private use and possession in the member States.
Reimportation of certain goods by taxable personsI7125
Subject to such conditions as the Commissioners may impose, the VAT chargeable on the importation of goods from a place outside the member States which have been previously exported from the member States shall not be payable if the Commissioners are satisfied that—
a
the importer is a taxable person importing the goods in the course of his business,
b
the goods were last exported from the member States by him or on his behalf,
c
the goods have not been subject to process or repair outside the member States other than necessary running repairs which did not result in any increase in the value of the goods,
d
the goods—
i
were owned by him at the time of exportation and have remained his property, or
ii
were owned by him at the time of exportation and have been returned after rejection by a customer outside the member States or because it was not possible to deliver them to such a customer, or
iii
have been returned from the continental shelf, and
e
if the goods were supplied in, acquired in or imported into a member State before their export, any VAT or other tax chargeable on that supply, acquisition or importation was accounted for or paid and neither has been, nor will be, refunded.
Reimportation of goods exported for treatment or processI8126
Subject to such conditions as the Commissioners may impose, VAT chargeable on the importation of goods from a place outside the member States which have been temporarily exported from the member States and are reimported after having undergone repair, process or adaptation outside the member States, or after having been made up or reworked outside the member States, shall be payable as if such treatment or process had been carried out in the United Kingdom, if the Commissioners are satisfied that—
a
at the time of exportation the goods were intended to be reimported after completion of the treatment or process outside the member States, and
b
the ownership in the goods was not transferred to any other person at exportation or during the time they were abroad.
Supplies to export housesF8I9127
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Export of freight containersI10128
Where the Commissioners are satisfied that a container is to be exported to a place outside the member States, its supply, subject to such conditions as they may impose, shall be zero-rated.
Supplies to overseas personsI11129
—
1
Where the Commissioners are satisfied that—
a
goods intended for export to a place outside the member States have been supplied, otherwise than to a taxable person, to—
i
a person not resident in the United Kingdom,
ii
a trader who has no business establishment in the United Kingdom from which taxable supplies are made, or
iii
an overseas authority, and
b
the goods were exported to a place outside the member States,
the supply, subject to such conditions as they may impose, shall be zero-rated.
F212
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplies to persons departing from the member States
F22I12130
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I13131
—
1
Where the Commissioners are satisfied that—
a
goods have been supplied to a person who is an overseas visitor and who, at the time of the supply, intended to depart from the member States F1before the end of the third month following that in which the supply is effected and that the goods should accompany him,
b
save as they may allow, the goods were produced to the competent authorities for the purposes of the common system of VAT in the member State from which the goods were finally exported to a place outside the member States, and
c
the goods were exported to a place outside the member States,
the supply, subject to such conditions as they may impose, shall be zero-rated.
F232
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I14132
The Commissioners may, on application by an overseas visitor who intends to depart from the member States within 15 months and remain outside the member States for a period of at least 6 months, permit him within 12 months of his intended departure to purchase, from a registered person, a F16... motor vehicle without payment of VAT, for subsequent export, and its supply, subject to such conditions as they may impose, shall be zero-rated.
I15133
The Commissioners may, on application by any person who intends to depart from the member States within 9 months and remain outside the member States for a period of at least 6 months, permit him within 6 months of his intended departure to purchase, from a registered person, a F15... motor vehicle without payment of VAT, for subsequent export, and its supply, subject to such conditions as they may impose, shall be zero-rated.
Supplies to persons taxable in another member StateI16134
Where the Commissioners are satisfied that—
a
a supply of goods by a taxable person involves their removal from the United Kingdom,
b
the supply is to a person taxable in another member State,
c
the goods have been removed to another member State, and
d
the goods are not goods in relation to whose supply the taxable person has opted, pursuant to section 50A27 of the Act, for VAT to be charged by reference to the profit margin on the supply,
the supply, subject to such conditions as they may impose, shall be zero-rated.
Supplies of goods subject to excise duty to persons who are not taxable in another member StateI17135
Where the Commissioners are satisfied that—
a
a supply by a taxable person of goods subject to excise duty involves their removal from the United Kingdom to another member State,
b
that supply is other than to a person taxable in another member State and the place of supply is not, by virtue of section 7(5) of the Act, treated as outside the United Kingdom,
c
the goods have been removed to another member State in accordance with the provisions of the Excise Goods (Holding, Movement, Warehousing and REDS) Regulations 199228, and
d
the goods are not goods in relation to whose supply the taxable person has opted, pursuant to section 50A of the Act, for VAT to be charged by reference to the profit margin on the supply,
the supply, subject to such conditions as they may impose, shall be zero-rated.
Territories to be treated as excluded from or included in the territory of the Community and of the member States
I18136
For the purposes of the Act the following territories shall be treated as excluded from the territory of the Community—
a
the Channel Islands,
b
Andorra,
c
San Marino, and
d
the Aland Islands.
I19137
For the purposes of the Act the following territories shall be treated as excluded from the territory of the member States and the territory of the Community—
a
the Canary Islands (Kingdom of Spain),
b
the overseas departments of the French Republic (Guadeloupe, Martinique, Réunion, St. Pierre and Miquelon and French Guiana), and
c
Mount Athos (Hellenic Republic).
I20138
—
F301
For the purposes of the Act the territory of the Community shall be treated as excluding—
a
Austria, Finland and Sweden (the acceding States), and
b
the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (the enlargement States),
in relation to goods to which this regulation applies.
2
Subject to F31paragraphs (4) and (5) below, the goods to which this regulation applies are—
a
goods which are the subject of a supply made in an acceding State before 1st January 1995 and which in pursuance of that supply are removed to the United Kingdom on or after 20th October 1995 being goods in the case of which provisions of the law of the acceding State in question having effect for purposes corresponding to those of subsection (6)(a) or (so far as it applies to exportations) subsection (8) of section 30 of the Act have prevented VAT from being charged on that supply, and
b
goods which were subject to a suspension regime before 1st January 1995, which by virtue of any Community legislation were to remain, for VAT purposes only, subject to that regime for a period beginning with that date and which cease to be subject to that regime on or after 20th October 1995.
3
For the purposes of paragraph (2)(b) above, goods shall be treated as having become subject to a suspension regime if—
a
on their entry into the territory of the Community—
i
they were placed under a temporary admission procedure with full exemption from import duties, in temporary storage, in a free zone, or under customs warehousing arrangements or inward processing arrangements, or
ii
they were admitted into the territorial waters of the United Kingdom for the purpose of being incorporated into drilling or production platforms, for the purposes of the construction, repair, maintenance, alteration or fitting-out of such platforms, for the purpose of linking such platforms to the mainland of the United Kingdom, or for the purpose of fuelling or provisioning such platforms, or
b
they were placed under any customs transit procedure in pursuance of a supply made in the course of a business,
and (in the case in question) the time that any Community customs debt in relation to the goods would be incurred in the United Kingdom if the accession to the European Union of the acceding States were disregarded would fall to be determined by reference to the matters mentioned in sub-paragraph (a) or (b) above.
4
This regulation does not apply to the following goods—
a
goods which are exported on or after 20th October 1995 to a place outside the member States,
b
goods which are not means of transport and are removed on or after 20th October 1995 from a temporary admission procedure such as is referred to in paragraph (3)(a)(i) above, in order to be returned to the person in an acceding State who had exported them from that State,
c
means of transport which are removed on or after 20th October 1995 from a temporary admission procedure such as is referred to in paragraph (3)(a)(i) above and which—
i
were first brought into service before 1st January 1987, or
ii
have a value not exceeding £4,000, or
iii
have been charged in an acceding State with VAT which has not been remitted or refunded by reason of their exportation and to such other tax (if any) to which means of transport of that class or description are normally chargeable.
F325
Paragraphs (2), (3) and (4) shall apply to enlargement States subject to the following—
a
any reference in paragraphs (2), (3) or (4)—
i
to “acceding” shall be read as if there were substituted “enlargement”;
ii
to “1st January 1995” or “20th October 1995” shall be read as if there were substituted “1st May 2004”.
b
the reference in paragraph 4(c)(i) to “1st January 1987” shall be read as if there were substituted “1st May 1996”
I21139
For the purposes of the Act the following territories shall be treated as included in the territory of the member States and the territory of the Community—
i
the Principality of Monaco (French Republic), F27...
iii
the United Kingdom Sovereign Base Areas of Akrotiri and Dhekelia (Cyprus).
Entry and exit formalitiesI22140
—
1
Where goods enter the United Kingdom from the territories prescribed in regulation 136 or 137 the formalities relating to the entry of goods into the customs territory of the Community contained in Council Regulation (EEC) No. 2913/9229, Commission Regulation (EEC) No. 2454/9330 and the Customs Controls on Importation of Goods Regulations 199131, shall be completed.
2
Where goods are exported from the United Kingdom to the territories prescribed in regulation 136 or 137 the formalities relating to the export of goods to a place outside the customs territory of the Community contained in Council Regulation (EEC) No. 2913/92 and Commission Regulation (EEC) No. 2454/93 shall be completed.
Use of the internal Community transit procedureI23141
Where goods enter the United Kingdom from the territories prescribed in regulation 136 or 137 and the said goods are intended for another member State, or other destination outside the United Kingdom transport of the goods to which destination involves their passage through another member State, the internal Community transit procedure described in Council Regulation (EEC) No. 2913/92 and Commission Regulation (EEC) No. 2454/93 shall apply.
Customs and excise legislation to be applied
I24142
Subject to regulation 143, where goods are imported into the United Kingdom from the territories prescribed in regulation 136 or 137 customs and excise legislation shall apply (so far as relevant) in relation to any VAT chargeable upon such importation with the same exceptions and adaptations as are prescribed in regulations 118, 119, 120 and 121 in relation to the application of section 16(1) of the Act.
I25143
Where goods are imported into the United Kingdom from the territories prescribed in regulation 137, section 4 of the Finance (No. 2) Act 199232 (enforcement powers) shall apply in relation to any VAT chargeable upon such importation as if references in that section to “member States” excluded the territories prescribed in regulation 137.
I26144
Where goods are exported from the United Kingdom to the territories prescribed in regulation 136 or 137 the provisions relating to the export of goods to a place outside the customs territory of the Community contained in Council Regulation (EEC) No. 2913/92 and Commission Regulation (EEC) No. 2454/93 shall apply for the purpose of ensuring the correct application of the zero rate of VAT to such goods.
I27145
—
1
Subject to paragraph (2) below, where goods are exported from the United Kingdom to the territories prescribed in regulation 136 or 137 the provisions made by or under the Customs and Excise Management Act 197933 in relation to the exportation of goods to places outside the member States shall apply (so far as relevant) for the purpose of ensuring the correct application of the zero rate of VAT to such goods.
2
Where goods are being exported from the United Kingdom to the territories prescribed in regulation 137, section 4 of the Finance (No. 2) Act 1992 (enforcement powers) shall apply to such goods as if references in that section to “member States” excluded the territories prescribed in regulation 137.