The Travellers’ Allowances and Miscellaneous Provisions (EU Exit) Regulations 2020

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make changes to existing provisions relating to travellers’ allowances; provide for a simplified computation of excise duty in specified circumstances; make changes to existing secondary legislation relating to excise duty and value added tax; and make consequential, transitional and savings provisions in order to make provision appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom (“UK”) from the European Union (“EU”).

Part 2 of these Regulations amends the Travellers’ Allowances Order 1994 (S.I. 1994/955) to ensure that existing travellers’ allowances for goods continue to operate correctly after the UK withdraws from the EU and to introduce a new simplified computation for travellers to use to calculate their excise duty liability in certain circumstances. These amendments are only effective in respect of goods being brought into Great Britain from outside the United Kingdom. A separate statutory instrument will cover journeys to Northern Ireland.

In Part 3 of these Regulations, regulation 9 provides for any reference by or under any enactment to orders made under section 13(1) of the Customs and Excise Duties (General Reliefs) Act 1979 to be read as including a reference to any regulation made under section 51 of the Taxation (Cross-border Trade) act 2018 that grant relief from VAT or excise duty to persons entering the UK.

Regulation 10 makes it clear that, where a VAT relief applies in circumstances where a person enters the UK, it will also apply where a person enters a control zone.

Part 3 of these Regulations also makes miscellaneous and consequential amendments to the Value Added Tax Regulations 1995 (S.I. 1995/2518) the Excise Goods (Export Shops) Regulations 2000 (S.I. 2000/645), the Tobacco Products Regulations 2001 (S.I. 2001/1712), the Duty Stamps Regulations 2006 (S.I. 2006/202) and the Excise Goods (Aircraft and Ship’s Stores) Regulations 2015 (S.I. 2015/368).

Regulation 11 amends Part 16 (importations, exportations and removals) of the Value Added Tax Regulations 1995 to revoke regulation 131 and associated definitions and to add a condition to regulation 129 that the goods in question must not be personal gifts on export.

Regulation 12 amends the Tobacco Products Regulations 2001 to remove an exemption for specified tobacco products acquired in an EU member State by a person for their own use from the requirement to carry a fiscal mark when transported to the UK as these goods will now fall within a different limb of the exemption, which applies to relieved goods.

Regulation 13 amends the Duty Stamps Regulations 2006 to remove specific limbs of the exceptions, namely the exception to the requirement for retail containers of alcoholic liquor to be stamped and the exception for goods transported by EU travellers for their own use to the offence of possessing, transporting or displaying unstamped retail containers of alcoholic liquor. This is because, in both cases, these goods now fall within a different limb of the exceptions by virtue of being relieved by the Travellers’ Allowances Order 1994. Various cross-references and geographical descriptors are also amended to ensure that the provisions operate correctly for the end of the transition period following the UK’s withdrawal from the EU.

Regulation 14 revokes the Excise Goods (Sales on Board Ships and Aircraft) Regulations 1999 (S.I. 1999/1565) as the registered mobile operator regime is an EU facilitation for intra-EU journeys that ceases to have any relevant application in GB after the end of the transition period following the UK’s withdrawal from the EU. It also makes changes to other legislation in consequence of this.

Regulations 15 to 19 make consequential provisions.

Regulation 20 amends the Excise Goods (Export Shops) Regulations 2000. In particular the definition of “entitled passenger” is amended and other miscellaneous amendments are made to ensure that the export shop regime operates correctly after the end of the transition period following the UK’s withdrawal from the EU to permit the supply of goods from export shops without payment of excise duty to travellers on flights, voyages and railway journeys to destinations outside the UK (including those travelling to the EU, with the exception of those travelling from Northern Ireland to the EU).

Regulation 21 amends the Excise Goods (Aircraft and Ship’s Stores) Regulations 2015 to provide for the introduction of duty free sales of excise goods on railway journeys to destinations outside the UK (including those to destinations in the EU, with the exception of those travelling from Northern Ireland to the EU).

Part 4 of these Regulations makes transitional and savings provisions in relation to some of the substantive amendments made in these Regulations.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.