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

Eligibility for authorisation or approval

9.—(1) The following criteria (“the eligibility criteria”) must be met before an authorisation or approval is granted to carry out an activity specified in regulation 3(2)—

(a) the applicant must be established in the United Kingdom, except where—

(i) the application is for authorisation to declare goods for a temporary admission procedure; or

(ii) paragraph (2) applies;

(b) where a liability to import duty may be incurred for goods declared for a relevant non-transit Part 1 procedure, the applicant must give a guarantee in accordance with Part 10 of the import duty regulations unless there is no requirement for any person to give a guarantee by virtue of regulation 101 of those Regulations;

(c) an HMRC officer must be of the opinion that it is possible to exercise control of any goods declared under the authorisation sought without the effects being disproportionate to the benefit to the applicant of use of the procedure; and

(d) an HMRC officer must be satisfied that the applicant will exercise proper conduct of the operations necessary to comply with the requirements of the procedure.

(2) This paragraph applies where—

(a) the application is for authorisation to declare goods for an inward processing procedure or an authorised use procedure; and

(b) in the opinion of an HMRC officer it is appropriate to grant authorisation to a person established outside the United Kingdom taking into consideration factors specified in a notice published by HMRC.

(3) A notice published under paragraph (2)(b) may make different provision for different cases.

(4) For the purposes of considering whether the applicant will exercise proper conduct of operations necessary to comply with the requirements of the relevant non-transit Part 1 procedure, the matters that an HMRC officer may take into account include (for example)—

(a) whether, in the opinion of an HMRC officer, the applicant’s financial standing makes the applicant suitable to carry out the activity for which authorisation is sought;

(b) whether the applicant, or any directors or senior employees of the applicant, has been involved in a breach of an obligation relating to tax or of a Customs obligation, which in the opinion of an HMRC officer is—

(i) a serious breach having regard to the circumstances and nature of any breach and the number of any breaches; and

(ii) relevant to the suitability of the applicant to carry out the activity for which authorisation is sought;

(c) whether the applicant, or any directors or senior employees of the applicant, has any criminal conviction which in the opinion of the HMRC officer is—

(i) serious having regard to the type of conviction; and

(ii) relevant to the suitability of the applicant to carry out the activity for which authorisation is sought;

(d) whether the applicant maintains a logistical system and records that identify sufficiently the movement of, and transactions in, chargeable goods and domestic goods and facilitate compliance with Customs obligations;

(e) whether—

(i) the applicant meets any professional standards of competence specified in a notice published by HMRC under regulation 93(2) of the import duty regulations; or

(ii) in the opinion of an HMRC officer, the applicant’s practical experience makes the applicant suitable to carry out the activity for which authorisation is sought.

(5) An authorised economic operator within the meaning given in section 22(2) of the Act is deemed to satisfy the requirement specified in paragraph (1)(d) unless, in the opinion of an HMRC officer, consideration is required of matters relating to the exercise of proper conduct of operations that were not considered at the time when the applicant was authorised as an authorised economic operator.