The Cross-border Trade (Public Notices) (EU Exit) Regulations 2019

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made by the Treasury in connection with the withdrawal of the United Kingdom from the European Union.

Regulation 1 provides for citation, commencement and effect. The Regulations have effect for a period of six months beginning with exit day.

Regulation 2 sets out definitions of terms used in the Regulations and provides that provisions of the Taxation (Cross-border Trade) Act 2018 (c. 22) (“the Act”) authorising the making of particular kinds of provision by regulations under Part 1 of the Act apply in relation to any public notice given under these Regulations.

Regulation 3 provides a power for the Treasury to make, in a public notice, such provision in relation to value added tax, any duty of customs or any excise duty as they consider appropriate in the public interest in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the European Union. This power may only be exercised on the recommendation of the Commissioners for Her Majesty’s Revenue and Customs (“HMRC Commissioners”). Paragraph (4) limits the effect that such provision may have to those conferring a benefit of any kind on any person. Paragraph (5) provides that a public notice may contain consequential provision modifying the operation of any provision made by or under any enactment, which may include imposing obligations (paragraph (6)), in limited circumstances. Any public notice given under regulation 3 may not have effect for longer than 60 days (paragraph (7)), but at the end of that period a new public notice may be made containing the same provision (paragraph (8)).

Regulation 4(1) provides that the power to make a recommendation to give a public notice is to be treated as if it were a non-delegable function for the purposes of the Commissioners for Revenue and Customs Act 2005 (c. 11). This means that the power to make such a recommendation may not be exercised by fewer than two HMRC Commissioners. Regulation 4(2) to (4) requires the Treasury to lay before the House of Commons monthly reports setting out whether the power to give a public notice has been used in the preceding month and if so how.

This instrument will be covered by an overarching HMRC impact assessment (third edition) which will be published and available on the website at https://www.gov.uk/government/collections/customs-vat-and-excise-regulations-leaving-the-eu-with-no-deal.