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

Discharge of guarantees

100.—(1) A guarantee is regarded as discharged in full—

(a) if all the liability to which the guarantee relates and, where regulation 95(2) (guarantee in relation to charges) applies, any charges in relation to that liability, is paid in full;

(b) where the potential liability to which the guarantee relates has been extinguished on the discharge of a special Customs procedure;

(c) where—

(i) an application for remission of the duty in respect of the liability covered by the guarantee is made where regulation 48 (incorrect amount of import duty), 50 (lower rate of import duty available), 51 (defective and non-compliant chargeable goods) or 52 (just and equitable reduction) applies;

(ii) the goods in relation to which the duty has arisen have been released to the free-circulation procedure; and

(iii) in the opinion of an HMRC officer the requirement of a guarantee would be likely to cause serious economic or social difficulties to the person required to give the guarantee; or

(d) where the potential liability to which the guarantee relates has been extinguished on the transfer of rights and obligations under regulation 42 (transfer of rights and obligations) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018(1).

(2) A person required to give a guarantee or a guarantor may apply to HMRC to discharge a guarantee in part where part of the liability to import duty to which the guarantee relates and, where regulation 95(2) applies, any charges, have been discharged.

(3) An application under paragraph (2) must state—

(a) the goods to which the application relates;

(b) the amount of the liability to import duty;

(c) the amount which has been paid in respect of the liability; and

(d) the location of the goods.

(4) An application must—

(a) include details identifying the applicant;

(b) be made to the place;

(c) be made in the form and manner, including electronic; and

(d) be accompanied by such information,

as specified in a notice published by HMRC.

(5) HMRC must publish a notice specifying the matters referred to in paragraph (4).

(6) By no later than 30 days after the date on which an application is received by HMRC, HMRC must notify the applicant that the application—

(a) is accepted and the guarantee is discharged in part, specifying the amount of the liability discharged and the goods in respect of which the liability relates; or

(b) is rejected for the reasons set out in the notification.

(7) If an acceptance or rejection is not made as required by paragraph (6), the application is deemed to be rejected.

(8) Where a guarantee is provided by a guaranteeing association, Article 6(3) and (4) of the ATA Convention, Article 8(3), (4) and (5) of Annex A of the Istanbul Convention or Article 10(2) of the TIR Convention, as the case may be, apply to determine the circumstances in which the guarantee is to be regarded as discharged.

(1)

S.I. 2018/1249.