The Customs (Import Duty) (EU Exit) Regulations 2018

CHAPTER 2 U.K. Reduced duty cases

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.

Reduced duty cases U.K.

47.  In this Part, a “reduced duty case” is a case described in this chapter and the amount of import duty in respect of which a remission or repayment may be made further to an application under chapter 3 is the amount stated in each case.

Commencement Information

I1 Reg. 47 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Incorrect amount of import duty U.K.

48.—(1) Paragraph (3) applies where—

(a) a notification of liability to pay import duty states an amount of duty in respect of goods which is lower than the amount correctly due;

(b) the incorrect amount arose by virtue of a mistake made by HMRC or the customs authorities of the territory from which the goods were exported;

(c) that mistake could not reasonably have been detected by the applicant making the application under chapter 3;

(d) the applicant has taken all reasonable steps to ensure compliance with—

(i) the Customs procedures relevant to the goods; and

(ii) any requirements imposed by an HMRC officer concerning control of the goods M1 ; and

(e) the goods are not, and have not been, liable to forfeiture.

(2) A mistake under paragraph (1) does not include a mistake by HMRC which gives rise to a reduced duty case under regulation 50.

(3) The difference between the correct and incorrect amount of duty is the amount which may be remitted or repaid.

Commencement Information

I2 Reg. 48 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M1 For goods being subject to the control of an HMRC officer, see section 37(7) of the Act.

Lower rate of import duty applied incorrectly U.K.

49.—(1) Subject to paragraph (2), paragraph (3) applies where—

(a) a Customs declaration for the free-circulation procedure M2 is accepted in respect of chargeable goods M3 ;

(b) at the time of the acceptance, a lower rate of import duty was applied to the goods by virtue of provision made under any of sections 9 to 12 of the Act;

(c) that lower rate was applied because of information provided by the customs authorities (“the exporting authorities”) of the territory from which the goods were exported;

(d) that information was inaccurate;

(e) any conditions relevant to the application of the lower rate of import duty have been complied with; and

(f) had the lower rate not been applied, the liability to pay import duty in respect of the goods would have been for an amount (“the higher amount”) more than that stated (“the stated amount”) in the declaration or, where it is given, in the notification of liability.

(2) Paragraph (3) does not apply where the inaccuracy arose by virtue of inaccurate information provided to the exporting authorities by the exporter unless—

(a) the exporter reasonably believed the information to be true and accurate; and

(b) the exporting authority acted reasonably in failing to correct the inaccuracy.

(3) The difference between the higher amount and the stated amount is the amount which may be remitted or repaid.

Commencement Information

I3 Reg. 49 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M2 “The free-circulation procedure” is defined in section 3(3)(a) of the Act.

M3 “Chargeable goods” is defined in section 2 of the Act.

Lower rate of import duty available U.K.

50.—(1) Paragraph (2) applies where a notification of liability to pay import duty states an amount of duty in respect of goods which is greater than the amount correctly due because by mistake an incorrect rate of import duty was applied.

(2) The difference between the correct and incorrect amount of duty is the amount which may be remitted or repaid.

Commencement Information

I4 Reg. 50 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Defective and non-compliant chargeable goods U.K.

51.—(1) Subject to paragraph (3), paragraph (4) applies where—

(a) chargeable goods are released M4 to a Customs procedure;

(b) a contract was entered into for the sale and purchase of the goods before that release; and

(c) the buyer notified the seller that the goods were rejected as not being in compliance with the contract as soon as practicable after the grounds for rejection became known to the buyer.

(2) In paragraph (1)(c)—

(a) grounds for rejection include where the goods are defective or damaged; and

(b) the rejection may occur after the goods cease to be chargeable goods.

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

(a) the goods have been used or processed, other than that which was necessary to determine if the goods were in compliance with the contract; or

(b) before the goods were released to a Customs procedure, the goods were declared for a special Customs procedure M5 in order to be tested to determine if the goods were in compliance with the contract, unless such testing would not normally have revealed such compliance.

(4) The amount of import duty in respect of the rejected goods is the amount which may be remitted or repaid.

Commencement Information

I5 Reg. 51 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M4 See paragraph 17 of Schedule 1 to the Act on release of goods to a Customs procedure.

M5 “Special Customs procedure” is defined in section 3(4) of the Act.

Just and equitable reduction U.K.

52.—(1) Paragraph (2) applies where—

(a) a person (“P”) making the application under chapter 3 incurs a liability to import duty in respect of the goods stated in the application in the course of a business carried on by P;

(b) P has taken all reasonable steps to ensure compliance with—

(i) the Customs procedures relevant to the goods; and

(ii) any requirements imposed by an HMRC officer concerning control of the goods; and

(c) HMRC consider that by reason of exceptional circumstances which apply to that business, were HMRC to enforce some or all of the liability against P, P would suffer a disadvantage in carrying on that business compared to other persons carrying on a similar business.

(2) The amount of import duty which HMRC considers is just and equitable to reduce having regard to the exceptional circumstances is the amount which may be remitted or repaid.

Commencement Information

I6 Reg. 52 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Withdrawal of a Customs declaration U.K.

53.—(1) Paragraph (2) applies where a Customs declaration is withdrawn in accordance with paragraph 16 of Schedule 1 to the Act and before the withdrawal a payment is made in respect of the liability to import duty incurred under that declaration.

(2) The amount paid is the amount which may be repaid.

Commencement Information

I7 Reg. 53 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

[F1 Trade remedy repayment investigations U.K.

53A.— (1) Paragraph (2) applies where—

(a) a person has paid import duty attributable to the imposition of an anti-dumping amount or countervailing amount specified in a notice made by the Secretary of State under section 13 of the Act;

(b) the relevant dumping margin or amount of the subsidy has been eliminated or reduced to a level which is lower than the amount specified in the notice made by the Secretary of State under section 13 of the Act; and

(c) the application to conduct a repayment investigation under regulation 89 of the Trade Remedies (Dumping and Subsidisation) (EU Exit) Regulations 2019 was made no later than 6 months after the end of the importation period to which the application related.

(2) The amount of repayment determined to be due pursuant to regulation 89 of the Trade Remedies (Dumping and Subsidisation) (EU Exit) Regulations 2019 at the conclusion of the repayment investigation is the amount which may be repaid.

(3)  For the purposes of this regulation—

(a) an “importation period” is any continuous six month period commencing on—

(i) the day after the date on which the Trade Remedies (Dumping and Subsidisation) (EU Exit) Regulations 2019 commence;

(ii) the day after the period in paragraph (i) terminates;

(iii) the anniversary of the day in paragraphs (i) or (ii);

(b) a “notice made by the Secretary of State under section 13 of the Act” includes a notice made by the Secretary of State under—

(i) regulation 96A(1) of the Trade Remedies (Dumping and Subsidisation) (EU Exit) Regulations 2019;

(ii) regulation 101C(2)(a) of the Trade Remedies (Dumping and Subsidisation) (EU Exit) Regulations 2019.]

Textual Amendments

F1 Reg. 53A inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 6(20) (as amended by S.I. 2019/1346, reg. 9(2)(c)); S.I. 2020/1643, reg. 2, Sch.

[F2 Repayment of import duty following Trade Remedies Authority review U.K.

53B.— (1) Paragraph (2) applies where the Secretary of State has made a public notice under regulation 96D(2B), regulation 96H(7) or (8)(b) of the Trade Remedies (Dumping and Subsidisation) (EU Exit) Regulations 2019.

(2) The amount of repayment determined by HMRC to be due having regard to the applicable public notice in paragraph (1) is the amount that may be repaid.]

Textual Amendments

F2 Reg. 53B inserted (4.12.2023) by The Customs (Aerodromes and Miscellaneous Amendments) Regulations 2023 (S.I. 2023/1202), regs. 1, 4(11)