The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018

Standard exchange system U.K.

29.—(1) An authorisation to declare goods for an outward processing procedure may authorise the standard exchange system to be used only if—

(a) the processing consists of the repair of the domestic goods declared for the procedure;

(b) none of the domestic goods are subject to—

F1 (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) insofar as it is retained EU law under the European Union (Withdrawal) Act 2018 M1 —

(aa) a measure provided for under Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products; F2 ...

(bb) an arrangement relating to goods resulting from the processing of agricultural products provided for under Regulation (EU) No 510/2014 of the European Parliament and of the Council of 16 April 2014 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products;

[F3 (cc) a measure provided for under Council Regulation (EU) No 1370/2013 of 16 December 2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products;

(dd) a measure provided for under Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) 1698/2005; or

(ee) a measure provided for under Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy and repealing Council Regulation (EC) No 637/2008 and Council Regulation (EC) No 73/2009.]

(c) the replacement goods have the same—

(i) classification code,

(ii) commercial quality, and

(iii) technical characteristics,

as the domestic goods would have when repaired; and

(d) where the domestic goods have been used prior to export, the replacement goods have been subject to the same use.

(2) For the purposes of paragraph (1)(c), the replacement goods have the same commercial quality as the domestic goods which they are replacing would have when repaired if a reasonable purchaser would consider the replacement goods to be of the same standard as the domestic goods would be when repaired.

(3) The condition in [F4 paragraph (1)(d)] does not apply where the replacement goods have been supplied to the person who will use them without charge as a result of a contractual or statutory obligation arising from a guarantee or from a manufacturing defect.

(4) Where replacement goods are supplied without charge to the person who will use them—

(a) [F5 subject to paragraph (9)] the replacement goods are to be regarded as domestic goods from the date on which they are imported into the United Kingdom; and

(b) the domestic goods are not to be regarded as domestic goods from the date on which they are exported from the United Kingdom.

(5) This paragraph applies where replacement goods—

(a) are imported after the domestic goods are exported; and

(b) are supplied with a charge to the person who will use them.

(6) Where paragraph (5) applies—

(a) [F6 subject to paragraph (9),] the value of the replacement goods is to be determined in accordance with regulation 31(2); and

(b) domestic goods repaired outside the United Kingdom and then imported into the United Kingdom are not to be treated as imported in accordance with the outward processing procedure.

(7) Subject to paragraph (8), where an authorisation to declare goods for an outward processing procedure authorises the import of replacement goods before the domestic goods are exported—

(a) the domestic goods must be exported within the period of two months beginning with the date on which the replacement goods are imported (“the required export period”); F7 ...

(b) where paragraph (4) applies, if the domestic goods are not exported within the required export period—

(i) the replacement goods—

(aa) are not to be regarded as domestic goods from the date the required export period expired;

(bb) are to be treated as imported into the United Kingdom on that date;

(cc) are to be treated as if, on that date, they had been declared for the free-circulation procedure and HMRC had accepted that declaration; and

(ii) for the purposes of section 34(1)(b) of the Act, a notification of importation is to be treated as having been given in relation to the replacement goods on that date; [F8 and]

[F9 (ba) subject to paragraph (9), where paragraph (4) does not apply, if the domestic goods are exported within the required export period—

(i) the value of the replacement goods is to be determined in accordance with regulation 31(2); and

(ii) domestic goods repaired outside the United Kingdom and then imported into the United Kingdom are not to be treated as imported in accordance with the outward processing procedure.]

F10 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) HMRC may grant an extension to the required export period where—

(a) the authorised person makes an application to HMRC for an extension; and

(b) in the opinion of an HMRC officer exceptional circumstances justify the extension.

[F11 (9) Paragraphs (4)(a), (6)(a) and (7)(ba)(i) do not apply where—

(a) there is a breach of—

(i) the terms of the declaration for the procedure; or

(ii) any other requirement in relation to the procedure; and

(b) an HMRC officer is satisfied that the person who caused the breach did so for the purposes of—

(i) avoiding, or enabling any other person to avoid, any Customs obligation that would have applied if the breach had not occurred;

(ii) preventing a liability to import duty or charges being incurred by any person; or

(iii) preventing the application of any non-tariff trade policy measure or agricultural policy measure.]

Textual Amendments

F1 Reg. 29(1)(b)(i) omitted (3.10.2019) by virtue of The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1215), regs. 1(3)(c), 12(11)(a)(i)

F2 Word in reg. 29(1)(b)(ii)(aa) omitted (3.10.2019) by virtue of The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1215), regs. 1(3)(c), 12(11)(a)(ii)(aa)

F3 Reg. 29(1)(b)(ii)(cc)-(ee) inserted (3.10.2019) by The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1215), regs. 1(3)(c), 12(11)(a)(ii)(bb)

F4 Words in reg. 29(3) substituted (3.10.2019) by The Customs and Excise (Miscellaneous Provisions and Amendments) (EU Exit) Regulations 2019 (S.I. 2019/1215), regs. 1(3)(c), 12(11)(b)

F5 Words in reg. 29(4)(a) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 7(6)(a); S.I. 2020/1643, reg. 2, Sch.

F6 Words in reg. 29(6)(a) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 7(6)(b); S.I. 2020/1643, reg. 2, Sch.

F7 Word in reg. 29(7)(a) omitted (31.12.2020) by virtue of The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 7(6)(c)(i); S.I. 2020/1643, reg. 2, Sch.

F8 Word in reg. 29(7)(b)(ii) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 7(6)(c)(ii); S.I. 2020/1643, reg. 2, Sch.

F9 Reg. 29(7)(ba) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 7(6)(c)(iii); S.I. 2020/1643, reg. 2, Sch.

F10 Reg. 29(7)(c) omitted (21.3.2019) by virtue of The Customs (Import Duty, Transit and Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/326), regs. 1(3)(b), 14(3)(c)

F11 Reg. 29(9) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 7(6)(d); S.I. 2020/1643, reg. 2, Sch.

Commencement Information

I1 Reg. 29(1)-(3)(7)(c) in force at 2.1.2019, see reg. 1(3)

I2 Reg. 29(4)-(6), (7)(a)(b)(8) in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M1 2018 c. 16.