The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020

Preferential quota

4.—(1) Subject to paragraph (2) and to meeting the conditions specified in paragraph (4), where, in relation to preferential quota goods for which no import licence is required, the importer or the importer’s representative—

(a) makes a Customs declaration under section 3(1) of the Act (obligation to declare goods for a customs procedure on import) for free circulation or authorised use claiming a preferential duty rate under an Agreement; and

(b) that declaration is accepted by HMRC under section 4(1) of the Act (when liability to import duty incurred),

the duty rate applicable to those goods on importation into the United Kingdom is the quota duty rate determined in accordance with paragraph (3).

(2) Subject to meeting the conditions specified in paragraph (5), where, in relation to preferential quota goods for which an import licence is required, the importer or the importer’s representative—

(a) makes a Customs declaration under section 3(1) of the Act (obligation to declare goods for a customs procedure on import) for free circulation or authorised use claiming a preferential duty rate under an Agreement; and

(b) that declaration is accepted by HMRC under section 4(1) of the Act (when liability to import duty incurred),

the duty rate applicable to those goods on importation into the United Kingdom is the quota duty rate determined in accordance with paragraph (3).

(3) The quota duty rate is—

(a) where the rate for originating goods is expressed in column 4 of the Preferential Quota Table against the commodity code in column 3 of the same row of that table only as a percentage, that percentage of the customs value of the originating goods; or

(b) where the rate for originating goods is determined by applying a formula set out in column 4 of the Preferential Quota Table against the commodity code in column 3 of the same row of that table, the result of applying that formula in accordance with the method of calculation set out in the notes in Part 2 of the Preferential Tariff.

(4) For the purposes of paragraph (1), the conditions specified in this paragraph are that—

(a) the goods qualify as originating goods in accordance with regulation 6;

(b) unless regulation 18 applies, the importer or the importer’s representative must, on receipt of a request from HMRC—

(i) provide—

(aa) a valid proof of origin in accordance with regulation 14; or

(bb) such other information or documents as are requested by HMRC under regulation 19, and

(ii) present to HMRC any documents required under regulation 17;

(c) the goods are of a description which is classified under a commodity code in the Preferential Quota Table;

(d) the quantity of the imported goods for which the quota duty rate is claimed is within the limits of the quota volume as described in regulation 9;

(e) the quota period has not expired; and

(f) a request to benefit from the quota and a Customs declaration for free circulation or authorised use for the goods have been accepted by HMRC.

(5) For the purposes of paragraph (2), the conditions specified in this paragraph are that—

(a) the goods qualify as originating goods in accordance with regulation 6;

(b) unless regulation 18 applies, the importer or the importer’s representative must, on receipt of a request from HMRC—

(i) provide—

(aa) a valid proof of origin in accordance with regulation 14, or

(bb) such other information or documents as are requested by HMRC under regulation 19; and

(ii) present to HMRC any documents required under regulation 17;

(c) the goods are of a description which is classified under a commodity code in the Preferential Quota Table under a quota number which commences with the three digits “054”; and

(d) the import licence in respect of the goods is valid in accordance with regulation 35 of the Tariff Quota Regulations.

(6) A quota may include one or more types of goods classified under different commodity codes, provided the unit of measure which establishes the quota volume is the same for each type of goods.

(7) The quota duty rate described in paragraphs (1) and (2) is without prejudice to the application of a lower duty rate which may exist in respect of the same classification of goods (classified under the same commodity code) by virtue of regulations made under sections 8, 11, 12 or 19 of the Act.

(8) In paragraph (1)—

(a) in sub-paragraph (a), the reference to “a Customs declaration under section 3(1) of the Act” is to be read as including a reference any such declaration made to HMRC under equivalent provisions of direct EU legislation that have effect in Northern Ireland in respect of goods that are imported into the United Kingdom by their entry into Northern Ireland; and

(b) in sub-paragraph (b), the reference to “that declaration is accepted by HMRC under section 4(1) of the Act” is to be read as including the acceptance by HMRC of any such declaration under equivalent provisions of direct EU legislation that have effect in Northern Ireland in respect of goods that are imported into the United Kingdom by their entry into Northern Ireland.

(9) This regulation has effect subject to the arrangements for a licensing system in respect of preferential quota goods under Part 3 of the Tariff Quota Regulations.