Interest on late payment of import dutyU.K.
45.—(1) Import duty payable carries interest at the late payment interest rate from the late payment interest start date until the date of payment.
(2) The late payment interest start date is the date following the date on or before which a liability to pay import duty must be discharged.
(3) But where a person is liable to import duty in respect of goods because the person was involved in a breach of a relevant Customs obligation in relation to the goods, the late payment interest start date is the date which would have applied had the breach not occurred and a Customs declaration had been made as required.
(4) The late payment interest rate is the percentage per annum given by the formula—
where BR is the official Bank rate determined by the Bank of England Monetary Policy Committee at the operative meeting.
(5) For the purposes of paragraph (4), “the operative meeting”, in relation to the late payment interest rate applicable in respect of any day, means the most recent meeting of the Bank of England Monetary Policy Committee apart from any meeting later than the 13th working day before that day.
(6) HMRC Commissioners may waive a charge to interest under this regulation where they think that the charge would cause serious economic or social difficulties to the person liable to the charge.
(7) No interest arises under this regulation if the amount of import duty is less than £9.
(8) Any interest determined under this regulation is recoverable as if it were an amount of import duty.
(9) Paragraph (1) applies even if the late payment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882 M1.
(10) Late payment interest is not payable on late payment interest.
(11) For the purposes of this regulation, a reference to import duty being paid includes a reference to its being set off against an amount payable by HMRC (and, accordingly, the reference to the date of payment includes a reference to the date from which the set-off takes effect).
Modifications etc. (not altering text)
C1Pts. 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.
Commencement Information
I1Reg. 45 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.
Marginal Citations
M11882 c. 61; amended by sections 3(1) and 4(4) of the Banking and Financial Dealings Act 1971 (c. 80).