The Taxation (Cross-border Trade) Act 2018 (Appointed Days No. 4 and Transitional Provisions) (Modification) (EU Exit) Regulations 2019

Modifications to Part 3 (provisional remedies: provisional safeguarding amount & provisional tariff rate quotas)

20.  Part 3 of Schedule 5 (provisional remedies: provisional safeguarding amount & provisional tariff rate quotas) to the Act has effect as if, for that Part, there were substituted—

“PART 3 PROVISIONAL REMEDIES: PROVISIONAL SAFEGUARDING AMOUNT & PROVISIONAL TARIFF RATE QUOTAS

Secretary of State’s power to make a preliminary decision regarding the application of a provisional safeguarding amount or a provisional tariff rate quota

11.— (1)  This paragraph applies where the Secretary of State makes a provisional affirmative determination in relation to goods which are the subject of a safeguarding investigation.

(2) Goods in relation to which that determination is made are referred to in this paragraph as relevant goods.

(3) The Secretary of State may make a preliminary decision —

(a) that an additional amount of import duty (referred to in this Schedule as a “provisional safeguarding amount”) should be applicable for a specified period to all the relevant goods or to specified relevant goods;

(b) that all the relevant goods, or specified relevant goods, should be subject to a quota for a specified period during which a lower rate of import duty should be applicable to imports of goods within the amount of the quota than is applicable to imports of goods outside the amount of the quota (referred to in this Schedule as a “provisional tariff quota”).

(4) Where the Secretary of State makes a preliminary decision under sub-paragraph (3)(a) in relation to relevant goods the Secretary of State must, as part of that decision, make a preliminary decision regarding the provisional safeguarding amount that should be applicable to those goods.

(5) The Secretary of State may make a preliminary decision under sub-paragraph (3) only if the Secretary of State is satisfied that applying a provisional safeguarding amount to relevant goods, or making relevant goods subject to a provisional tariff rate quota, in accordance with the preliminary decision —

(a) is necessary to prevent serious injury which it would be difficult to repair from being caused during the investigation to UK producers of the goods, and

(b) meets the economic interest test (see paragraph 23).

(6) The Secretary of State may only make a preliminary decision under one or other of paragraphs (a) and (b) of sub-paragraph (3) in relation to any particular relevant good.

(7) The Secretary of State may make a preliminary decision under paragraph (a) or (b) of sub-paragraph (3) in relation to specified relevant goods (rather than all the relevant goods) only if the preliminary decisions the Secretary of State makes under that sub-paragraph, when taken together, cover all the relevant goods.

(8) If the Secretary of State determines that there are one or more preliminary decisions which the Secretary of State could make under sub-paragraph (3) in relation to all the relevant goods, or that there are one or more preliminary decisions which the Secretary of State could make under sub-paragraph (3) in relation to specified relevant goods, the Secretary of State must make that preliminary decision or one of those preliminary decisions (subject to sub-paragraphs (6) and (7)).

(9) If the Secretary of State determines that there is no preliminary decision which the Secretary of State could make under sub-paragraph (3), the Secretary of State must—

(a) publish notice of the provisional affirmative determination in relation to the goods,

(b) publish notice of the determination that there is no preliminary decision which the Secretary of State could make under sub-paragraph (3), and

(c) notify interested parties (see paragraph 31(3)) accordingly.

Secretary of State’s preliminary decisions about a provisional safeguarding amount

12.— (1)  This paragraph applies to a preliminary decision made by the Secretary of State under paragraph 11(3)(a) in relation to goods.

(2) The specified period referred to in paragraph 11(3)(a)—

(a) must not exceed 200 days, and

(b) if the Secretary of State decides to give effect to the preliminary decision, must begin on the day after the date of publication of the public notice under section 13 giving effect to the preliminary decision.

(3) A preliminary decision under paragraph 11(3)(a) regarding a provisional safeguarding amount that should be applicable to goods (see paragraph 11(4)) may be made by reference to either or both of the following—

(a) the value of the goods, and

(b) the weight or volume of the goods or any other measure of their quantity or size.

(4) But that preliminary decision must be such that a provisional safeguarding amount applicable to goods does not exceed the amount which the Secretary of State is satisfied is necessary to prevent serious injury which it would be difficult to repair from being caused during the investigation to UK producers of the goods.

(5) Regulations may make provision for the purposes of sub-paragraph (4) about how the amount which the Secretary of State is satisfied is necessary to prevent the serious injury described in that provision is to be determined.

(6) A preliminary decision under paragraph 11(3)(a), must include such other content as regulations may require.

Secretary of State’s preliminary decisions regarding provisional tariff rate quotas

13.— (1)  This paragraph applies to a preliminary decision made by the Secretary of State under paragraph 11(3)(b) in relation to goods.

(2) The specified period referred to in paragraph 11(3)(b)—

(a) must not exceed 200 days, and

(b) if the Secretary of State decides to give effect to the preliminary decision, must begin on the day after the date of publication of the public notice under section 13 giving effect to the preliminary decision.

(3) The preliminary decision must (in addition to the specified period) include—

(a) the amount of the quota,

(b) how the quota should be allocated,

(c) the rates of import duty that should be applied to goods subject to the quota, and

(d) such other content as regulations may require.

(4) The things decided by the Secretary of State by virtue of sub-paragraph (3)(a) to (c) must be such as the Secretary of State is satisfied are necessary to prevent serious injury which it would be difficult to repair from being caused during the investigation to UK producers of the goods.

(5) Regulations may make provision for the purposes of sub-paragraph (4) about how the things which the Secretary of State is satisfied are necessary to prevent the serious injury described in that provision are to be determined.

Secretary of State’s power to apply a provisional safeguarding amount

14.— (1)  If the Secretary of State makes a preliminary decision under paragraph 11(3)(a), the Secretary of State must decide whether to give effect to the preliminary decision.

(2) The Secretary of State may decide not to give effect to the preliminary decision only if the Secretary of State is satisfied that it is not in the public interest to give effect to it.

(3) If the Secretary of State decides not to give effect to the preliminary decision, the Secretary of State must—

(a) publish notice of the provisional affirmative determination in relation to the goods, of the preliminary decision and of the decision not to give effect to it,

(b) notify interested parties (see paragraph 31(3)) accordingly, and

(c) lay a statement before the House of Commons setting out the reasons for deciding not to give effect to the preliminary decision.

(4) If the Secretary of State decides to give effect to the preliminary decision, the Secretary of State—

(a) must publish notice of the Secretary of State’s provisional affirmative determination in relation to the goods, of the preliminary decision and of the decision to give effect to it,

(b) must notify interested parties accordingly, and

(c) is required under section 13 to make provision by public notice to give effect to the preliminary decision.

(5) The period for which a provisional safeguarding amount applies to goods ceases (if it has not already expired) when the safeguarding investigation in relation to the goods terminates.

Secretary of State’s power to subject goods to a provisional tariff rate quota

15.— (1)  If the Secretary of State makes a preliminary decision under paragraph 11(3)(b), the Secretary of State must decide whether to give effect to the preliminary decision.

(2) The Secretary of State may decide not to give effect to the preliminary decision only if the Secretary of State is satisfied that it is not in the public interest to give effect to it.

(3) If the Secretary of State decides not to give effect to the preliminary decision, the Secretary of State must—

(a) publish notice of the provisional affirmative determination in relation to the goods, of the preliminary decision and of the decision not to give effect to it,

(b) notify interested parties (see paragraph 31(3)) accordingly, and

(c) lay a statement before the House of Commons setting out the reasons for deciding not give effect to the preliminary decision.

(4) If the Secretary of State decides to give effect to the preliminary decision, the Secretary of State—

(a) must publish notice of the provisional affirmative determination in relation to the goods, of the preliminary decision and of the decision to give effect to it,

(b) must notify interested parties accordingly, and

(c) is required under section 13 to make provision by public notice to give effect to the preliminary decision.

(5) The period for which goods are subject to a provisional tariff rate quota ceases (if it has not already expired) when the safeguarding investigation in relation to the goods terminates.”.