The Customs (Northern Ireland) (EU Exit) Regulations 2020

PART 2 U.K. Importation of goods and goods potentially for export

CHAPTER 1 U.K. Preliminary

Part 2 interpretation U.K.

3.  In this Part—

“British ship” has the meaning given in section 1 of the Merchant Shipping Act 1995 M1 (British ships and United Kingdom ships);

“catch” means fish or any other aquatic life which is commonly fished or obtained in maritime waters or on the seabed;

[F1 “Delegated Regulation” means Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning provisions of the Union Customs Code;]

“goods for the internal market” has the meaning given in regulation 4.

[F2 “Tariff of the United Kingdom” has the same meaning as it has in the Customs Tariff (Establishment) (EU Exit) Regulations 2020.]

Textual Amendments

F1 Words in reg. 3 inserted (31.12.2020) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(2)(a)

F2 Words in reg. 3 inserted (31.12.2020) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(2)(b)

Commencement Information

I1 Reg. 3 not in force at made date, see reg. 1(1)

I2 Reg. 3 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M1 1995 c. 21.

CHAPTER 2 U.K. Goods not at risk

Goods for the internal market U.K.

4.—(1) Goods are “goods for the internal market” if the goods —

(a) are not to be considered at risk of subsequently being moved into the Union by virtue of Joint Committee Decision No 4/2020; and

(b) do not enter Northern Ireland for the purposes of commercial processing.

(2) In this regulation—

“commercial processing” means processing which is not considered not to be commercial processing by virtue of Article 5(2) of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement and Joint Committee Decision No 4/2020;

“Joint Committee Decision No 4/2020” means Decision No 4/2020 of the Joint Committee established under the EU withdrawal agreement of 17th December 2020.

Commencement Information

I3 Reg. 4 not in force at made date, see reg. 1(1)

I4 Reg. 4 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

CHAPTER 3 U.K. Importation of goods entering Northern Ireland

Goods not chargeable under section 30A U.K.

5.—(1) Goods to which this regulation applies are not chargeable to duty under section 30A(3) of the Act.

(2) This regulation applies to goods for the internal market that are imported into the United Kingdom as a result of their entry into Northern Ireland if the goods—

(a) enter Northern Ireland from the Bailiwick of Jersey or the Bailiwick of Guernsey;

(b) enter Northern Ireland from the Isle of Man, unless they are goods of a description in section 8(2)(a), (b) or (c) of the Isle of Man Act 1979 M2 (removal of goods from the Isle of Man to United Kingdom); or

(c) are goods to which paragraph (3) or (4) applies.

(3) This paragraph applies to a catch which is caught by a non-NI British ship whilst fishing in international waters and brought to Northern Ireland—

(a) directly by that or another ship; or

(b) after merely landing at a port outside the United Kingdom and the catch are itemised in a travel document issued at that port by the person responsible for the carriage of the catch which specifies the destination and recipients of the catch.

(4) This paragraph applies to goods which are products of a catch which is—

(a) caught by a British ship whilst fishing in international waters and processed on a factory ship which is a non-NI British ship operating in international waters; or

(b) caught by a non-NI British ship whilst fishing in international waters and processed on a factory ship which is a British ship operating in international waters,

if the goods are brought to Northern Ireland in accordance with paragraph (5).

(5) Goods are brought to Northern Ireland in accordance with this paragraph if they are brought—

(a) directly by the ship that caught them or another ship; or

(b) after merely landing at a port outside the United Kingdom and the goods are itemised in a travel document issued at that port by the person responsible for the carriage of the goods which specifies the destination and recipients of the goods in Northern Ireland.

(6) In this regulation—

(a) “factory ship” means a vessel providing processing services for the fishing industry;

(b) “international waters” means any part of the sea outside the seaward limits of the territorial sea of any country or territory;

(c) “non-NI British ship” means a British ship which has as its port of registration a port outside Northern Ireland.

Commencement Information

I5 Reg. 5 not in force at made date, see reg. 1(1)

I6 Reg. 5 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M2 1979 c.58. Section 8(2)(c) was substituted by S.I. 2014/1638. Section 8(3) and (3A), which provide for goods to be excluded from the description in section 8(2)(a), were substituted for subsection (3) by paragraph 140 of Schedule 7 to the Taxation (Cross-border Trade) Act 2018 (c. 22) (“the Act”).

Goods entering Northern Ireland - relevant goods U.K.

6.—(1) Goods are “ relevant goods” for the purposes of this Chapter if—

(a) they are not goods to which regulation 5 applies;

(b) they are not Union goods;

(c) they are imported into the United Kingdom as a result of their entry into Northern Ireland;

(d) they are moved by direct transport into Northern Ireland, other than from the European Union; and

(e) they are goods for the internal market.

(2) In paragraph (1)(d) “moved by direct transport” has the same meaning as it has in Article 5(1) of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement.

Commencement Information

I7 Reg. 6 not in force at made date, see reg. 1(1)

I8 Reg. 6 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Application of provisions made by or under the Act U.K.

7.—(1) The relevant tariff provisions apply for the purposes of duty charged under section 30A(3) in respect of relevant goods.

(2) A provision is a “relevant tariff provision” if it is—

(a) section 7(1) of the Act (amount of import duty: introduction);

(b) provision made by or under any of—

(i) sections 9 to 15 of the Act (preferences, safeguarding etc.), including as modified by any provision made by or under section 31 (territories forming part of a customs union with UK) or 51 (power to make provision in relation to VAT or duties of customs or excise) of the Act;

(ii) section 17 of the Act (place of origin of chargeable goods); or

(c) provision relating to relief contained in any of—

(i) the Customs (Tariff Quotas) (EU Exit) Regulations 2020 M3 ;

(ii) the Customs (Tariff-free Access for Goods from British Overseas Territories) (EU Exit) Regulations 2020 M4 ;

(iii) the Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 M5 .

[F3 (3) Section 7(1) of the Act applies as if in the Tariff of the United Kingdom—

(a) where a term used corresponds to a term used in the Union customs legislation, the term were a reference to the corresponding term in the Union customs legislation, as the context requires;

(b) in Part Two, in Section 1, in paragraph 9, for “Part 12 of the Customs (Import Duty) (EU Exit) Regulations 2018” there were substituted “Articles 71 to 76 of the Union Customs Code”; and

(c) in Part Four—

(i) in paragraph 3, for “Part 12 of the Customs (Import Duty) (EU Exit) Regulations 2018” there were substituted “Articles 71 to 76 of the Union Customs Code”;

(ii) in paragraph 17—

(aa) for “regulations 18 and 23 of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018” there were substituted “Article 86(4) of the Union Customs Code and Article 76 of the Delegated Regulation”;

(bb) “United Kingdom” were omitted;

(iii) in paragraph 18, for the words from “the value of the processed goods” the first time it occurs to the end there were substituted “Article 75 of the Delegated Regulation”; and

(iv) in paragraph 19, for the words from “(as defined in” to the end there were substituted “any amount of duty applicable shall be calculated on the basis of Article 75 of the Delegated Regulation”.]

Textual Amendments

F3 Reg. 7(3) inserted (31.12.2020) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(3)

Commencement Information

I9 Reg. 7 not in force at made date, see reg. 1(1)

I10 Reg. 7 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M3 S.I. 2020/1432.

M4 S.I. 2020/1434.

M5 S.I. 2020/1457.

Determination of section 30A charge U.K.

8.  Regulations 7 and 9 apply for the purpose of determining the amount of duty charged under section 30A(3) of the Act.

Commencement Information

I11 Reg. 8 not in force at made date, see reg. 1(1)

I12 Reg. 8 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Relief from section 30A duty U.K.

9.  Relief from duty charged under section 30A(3) of the Act is to be given in accordance with—

(a) Union customs legislation (as applied to that duty by section 30A(3) of the Act);

(b) provision made by or under the Customs and Excise Duties (General Reliefs) Act 1979 M6 ; F4 ...

(c) regulation 7 [F5 ; and]

[F6 (d) Chapter 5 (reliefs and repayment)].

Textual Amendments

F4 Word in reg. 9(b) omitted (31.12.2020) by virtue of The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(4)(a)

F5 Word in reg. 9 inserted (31.12.2020) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(4)(b)

F6 Reg. 9(d) inserted (31.12.2020) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(4)(c)

Commencement Information

I13 Reg. 9 not in force at made date, see reg. 1(1)

I14 Reg. 9 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M6 1979 c. 3. The Customs and Excise Duties (General Reliefs) Act 1979 (“the 1979 Act”) is amended by Part 3 of Schedule 7 to the Act. Part 4 of that Schedule, inserted by Schedule 1 to the 2020 Act, makes savings and modifications of the 1979 Act in relation to Northern Ireland.

CHAPTER 4 U.K. Goods potentially for export from Northern Ireland

“At risk of subsequently being moved into the European Union” – definition U.K.

10.  For the purposes of section 40A of the Act “ at risk of subsequently being moved into the European Union” in relation to goods means that they are not goods for the internal market.

Commencement Information

I15 Reg. 10 not in force at made date, see reg. 1(1)

I16 Reg. 10 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Goods not chargeable under section 40A U.K.

11.—(1) Goods to which this regulation applies are not chargeable to duty under section 40A(1) of the Act.

(2) This regulation applies to goods that are not domestic goods if they are—

(a) goods for the internal market; and

(b) subject to an inward processing procedure that was not discharged in accordance with paragraph 9(5) of Schedule 2 to the Act or regulation 26 of the special procedures regulations (temporary export of goods released to an inward processing procedure) when the goods were removed to Northern Ireland.

Commencement Information

I17 Reg. 11 not in force at made date, see reg. 1(1)

I18 Reg. 11 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Goods potentially for export – relevant goods U.K.

12.—(1) Goods are “ relevant goods” for the purposes of this Chapter if they—

(a) are removed to Northern Ireland from Great Britain by direct transport;

(b) are not goods to which regulation 11 applies;

(c) are not domestic goods; and

(d) are goods for the internal market.

(2) In paragraph (1)(a) “moved by direct transport” has the same meaning as it has in Article 5(1) of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement.

Commencement Information

I19 Reg. 12 not in force at made date, see reg. 1(1)

I20 Reg. 12 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Application of provisions made by or under the Act U.K.

13.—(1) The relevant tariff provisions apply for the purposes of duty charged under section 40A in respect of relevant goods as if any reference to the importation of goods were to their removal to Northern Ireland from Great Britain [F7 and with the modifications in paragraph (3)].

(2) A provision is a “relevant tariff provision” if it is—

(a) section 7(1) of the Act;

(b) provision made by or under any of—

(i) sections 9 to 15 of the Act, including as modified by any provision made by or under section 31 or 51 of the Act;

(ii) section 17 of the Act; or

(c) provision relating to relief contained in any of—

(i) the Customs (Tariff Quotas) (EU Exit) Regulations 2020;

(ii) the Customs (Tariff-free Access for Goods from British Overseas Territories) (EU Exit) Regulations 2020;

(iii) the Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020.

[F8 (3) Section 7(1) of the Act applies as if, in the Tariff of the United Kingdom—

(a) where a term used corresponds to a term used in the Union customs legislation, the term were a reference to the corresponding term in the Union customs legislation, as the context requires;

(b) in Part Two, in Section 1, in paragraph 9, for “Part 12 of the Customs (Import Duty) (EU Exit) Regulations 2018” there were substituted “Articles 71 to 76 of the Union Customs Code”;

(c) in Part Four—

(i) in paragraph 3, for “Part 12 of the Customs (Import Duty) (EU Exit) Regulations 2018” there were substituted “Articles 71 to 76 of the Union Customs Code”;

(ii) in paragraph 17—

(aa) for “regulations 18 and 23 of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018” there were substituted “Article 86(4) of the Union Customs Code and Article 76 of the Delegated Regulation”;

(bb) “United Kingdom” were omitted; and

(iii) in paragraph 18, for the words from “the value of the processed goods” the first time they occur to the end there were substituted “Article 75 of the Delegated Regulation”;

(iv) in paragraph 19, for the words from “(as defined in” to the end there were substituted “any amount of duty applicable shall be calculated on the basis of Article 75 of the Delegated Regulation”.]

Textual Amendments

F7 Words in reg. 13(1) inserted (31.12.2020) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(5)(a)

F8 Reg. 13(3) inserted (31.12.2020) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(5)(b)

Commencement Information

I21 Reg. 13 not in force at made date, see reg. 1(1)

I22 Reg. 13 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Determination of section 40A charge U.K.

14.  Regulations 13, 15 and 16 apply for the purpose of determining the amount of duty charged under section 40A of the Act.

Commencement Information

I23 Reg. 14 not in force at made date, see reg. 1(1)

I24 Reg. 14 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Amount of section 40A charge U.K.

15.—(1) Paragraph (2) applies for the purposes of determining the amount of duty applicable to any relevant goods chargeable to duty under section 40A of the Act.

(2) Where—

(a) a liability to import duty was incurred in respect of the goods in accordance with Part 1 of the Act or the EU Customs Code M7 as a result of their importation into the United Kingdom;

(b) that duty was paid; and

(c) after IP completion day, the goods subsequently moved from Great Britain to Northern Ireland without leaving the United Kingdom,

the amount of duty applicable to the goods under section 40A(1)(a) of the Act is to be reduced by the amount of duty paid in respect of the goods in accordance with Part 1 of the Act or the EU Customs Code.

(3) In this regulation “EU Customs Code” means—

(a) the UCC;

[F9 (b) the Delegated Regulation;]

(c) Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code M8 ; and

(d) Commission Delegated Regulation (EU) 2016/341 of 17 December 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards transitional rules for certain provisions of the Union Customs Code where the relevant electronic systems are not yet operational and amending Delegated Regulation (EU) 2015/2446 M9 .

Textual Amendments

F9 Reg. 15(3)(b) substituted (31.12.2020) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(6)

Commencement Information

I25 Reg. 15 not in force at made date, see reg. 1(1)

I26 Reg. 15 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M7 The legislation which constitutes the EU Customs Code has effect before IP completion day as a result of section 1A of the European Union (Withdrawal) Act 2018 (c. 16) and to a limited extent after IP completion day as a result of section 7A of that Act.

M8 OJ L 343, 29.12.2015, p. 558.

M9 OJ L 69, 15.3.2016, p. 1.

Relief from section 40A duty U.K.

16.—(1) Relief from duty charged under section 40A of the Act is to be given in accordance with—

(a) Union customs legislation (as applied to that duty by section 40A(4) of the Act);

(b) provision made by or under the Customs and Excise Duties (General Reliefs) Act 1979 M10 ; F10 ...

(c) regulation 13 [F11 ; and]

[F12 (d) Chapter 5 (reliefs and repayment).]

(2) For the purposes of paragraph (1)(a) relief given in accordance with Union customs legislation is to include relief in respect of cases described in the Personal Property Relief document.

(3) In this regulation “the Personal Property Relief document” means the document entitled “Personal Property Relief”, version 1.0 dated 17th December 2020 M11 which describes cases where a claim for relief may apply, expressed by reference to—

(a) the goods to which the relief applies;

(b) the persons who may be a claimant or consignee for the purposes of the relief; and

(c) the eligibility criteria which apply for the purposes of the relief.

Textual Amendments

F10 Word in reg. 16(1)(b) omitted (31.12.2020) by virtue of The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(7)(a)

F11 Word in reg. 16(1)(c) inserted (31.12.2020) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(7)(b)

F12 Reg. 16(1)(d) inserted (31.12.2020) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(2), 6(7)(c)

Commencement Information

I27 Reg. 16 not in force at made date, see reg. 1(1)

I28 Reg. 16 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.

Marginal Citations

M10 1979 c. 3.

M11 Available electronically from https://www.gov.uk/government/publications/reference-document-for-northern-ireland-personal-property-relief. A person unable to access the document electronically may access it while government advice on social distancing and unnecessary travel applies, in hard copy free of charge on application to 07741835049, and otherwise by inspection free of charge at HMRC, 100 Parliament Street, London SW1A 2BQ.

[F13 CHAPTER 5 U.K. Reliefs and repayment

Textual Amendments

F13 Pt. 2 Ch. 5 inserted (31.12.2020 for specified purposes, 4.9.2021 for specified purposes) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1629), regs. 1(4)(5), 6(8); S.I. 2021/983, reg. 2

SECTION 1 U.K. Introduction

Reliefs etc. – interpretation U.K.

16A.   In this Chapter—

“applicable de minimis state aid limit” has the meaning given in regulation 16E(2);

“claim for relief” means a claim made in accordance with Section 2 that relief be granted in respect of goods;

“claimant” means a person who makes a claim for relief;

“customs declaration” has the meaning given in Article 5(12) of the UCC;

“eligibility criteria” means the criteria described in regulation 16E(1);

“fiscal year” in relation to an undertaking has the meaning given in the EU regulation referred to in regulation 16E(2) which applies in relation to the undertaking;

“principal” has the meaning given in regulation 16C(1);

“relief” means relief, calculated in accordance with regulation 16I, from a liability to duty under section 30A(3) or 40A(1);

“relief agent” has the meaning given in regulation 16C(1).

Commencement Information

I29 Reg. 16A in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Establishment U.K.

16B.   In this Chapter, a person is established in the United Kingdom—

(a) in the case of an individual, where the individual is resident in the United Kingdom; and

(b) in any other case, where the person—

(i) has a registered office in the United Kingdom; or

(ii) has a permanent place in the United Kingdom from which the person carries out activities for which the person is constituted to perform.

Commencement Information

I30 Reg. 16B in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Relief agents U.K.

16C.— (1) A person (a “principal”) may appoint any other person (a “relief agent”) to act on the principal’s behalf for the purposes of this Chapter.

(2) A person may not act as a relief agent unless the person—

(a) is appointed to act in the capacity of a customs representative as described by Article 5(6) of the UCC on behalf of the principal; or

(b) is established in the United Kingdom.

(3) The relief agent must disclose their appointment to HMRC in each claim for relief which is made as agent on behalf of the principal.

(4) Where a claim for relief is made in a customs declaration, a statement made to HMRC for the purposes of Article 19(1) of the UCC is to be treated as a disclosure of the appointment as a relief agent for the purposes of paragraph (3).

(5) The effect of an appointment of a person as a relief agent is that anything done under, or otherwise for the purposes of, this Chapter by, or in relation to, the agent is regarded as done under, or otherwise for the purposes of, this Chapter by, or in relation to, the principal (and not by the agent).

Commencement Information

I31 Reg. 16C in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

SECTION 2 U.K. Application, claims and waivers

Reliefs – application of Chapter 5 U.K.

16D.— (1) Subject to paragraph (2), this Chapter applies to—

(a) goods which are not relevant goods for the purposes of Chapter 3, in respect of which a liability to duty chargeable under section 30A(3) of the Act is incurred; and

(b) goods in respect of which a liability to duty chargeable under section 40A(1)(b) of the Act is incurred.

(2) This Chapter does not apply to goods where—

(a) a liability to duty in respect of the goods is incurred by virtue of Article 79 of the UCC; and

(b) the condition specified in Article 86(6) of the UCC does not apply.

Commencement Information

I32 Reg. 16D in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Eligibility criteria U.K.

16E.— (1) The eligibility criteria for a claim for relief are that—

(a) the claimant—

(i) is established in the United Kingdom;

(ii) is registered with HMRC in accordance with Article 9 of the UCC; and

(iii) has incurred a liability to duty under section 30A(3) or section 40A(1)(b) of the Act in the course of a commercial activity; and

(b) grant of the relief claimed would not result in the claimant being granted aid in excess of the applicable de minimis state aid limit or any other breach of any other EU law that has effect as a result of section 7A of the European Union (Withdrawal) Act 2018.

(2) In paragraph (1)(b), the “applicable de minimis state aid limit” means the limit on the amount of de minimis state aid which may be granted to the claimant by virtue of, as the case may be—

(a) Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid;

(b) Commission Regulation (EU) No 360/2012 of 25 April 2012 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest;

(c) Commission Regulation (EU) No 1408/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid in the agriculture sector; or

(d) Commission Regulation (EU) No 717/2014 of 27 June 2014 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid in the fishery and aquaculture sector.

(3) Where the claim for relief is made by a relief agent on behalf of a principal the references to “the claimant” in paragraph (1) are to the principal.

Modifications etc. (not altering text)

C1 Reg. 16E(1)(a)(i) modified (31.12.2020) by The Customs (Modification and Amendment) (EU Exit) Regulations 2020 (S.I. 2019/385), reg. 7(4) (as inserted by S.I. 2020/1629, regs. 1(2), 8(2))

Commencement Information

I33 Reg. 16E in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Waiver of commercial activity criterion U.K.

16F.— (1) HMRC may grant a claim for relief even where the eligibility criterion in regulation 16E(1)(a)(iii) is not met if an HMRC officer is of the opinion that it is appropriate to approve a waiver of the criterion, taking into consideration factors specified in a notice published by HMRC.

(2) A claimant may apply to HMRC for approval of a waiver in accordance with paragraph (1).

(3) Regulations 85 to 91 of the import duty regulations apply in relation to an application under paragraph (2).

(4) Section 23(5) of the Act applies to approvals granted under this regulation, including where the approval relates to a claim for relief in relation to a liability to duty chargeable under section 40A(1) of the Act.

Commencement Information

I34 Reg. 16F in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Making a claim U.K.

16G.— (1) A claim for relief in respect of goods may be made—

(a) in the customs declaration made in respect of the goods or at the same time as that declaration is made; or

(b) at any time before the expiry of the period of 3 years beginning with the later of—

(i) the date on which notification is given by HMRC of the liability to duty chargeable under section 30A(3) or 40A(1)(b) of the Act in respect of the goods; and

(ii) the date on which this regulation comes into force.

(2) A claim for relief in respect of goods may not be made—

(a) where—

(i) more than one person is liable to duty under section 30A(3) or 40A(1)(b) in respect of the goods; and

(ii) one of the persons liable has made a claim for relief in respect of the goods;

(b) where the goods are catch caught by a vessel which is not a British ship; or

(c) where a claim for the relief was previously made and determined unless an HMRC officer consents to the making of the further claim.

(3) A claim must be made in the form and manner specified in a notice published by HMRC.

(4) HMRC must publish a notice specifying the form and manner referred to in paragraph (3).

Commencement Information

I35 Reg. 16G in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Information and evidence in relation to claims U.K.

16H.— (1) A claim for relief must—

(a) contain information of a description specified in a notice published by HMRC Commissioners;

(b) be accompanied by such documents of a description specified in a notice published by HMRC Commissioners; and

(c) include a declaration by the person making the claim containing statements of a description specified in a notice published by HMRC Commissioners.

(2) A claim for relief is to be treated as not made unless the claimant provides, to the satisfaction of an HMRC officer, the information, documents and declaration specified in paragraph (1).

(3) In cases specified in a notice published by HMRC Commissioners, the requirement under paragraph (1)(b) may be met by the person who has made the claim, or any other person—

(a) making the documents available for inspection by an HMRC officer; or

(b) making available to HMRC information of a description specified in the notice (whether electronically or otherwise).

(4) Where a claim for relief is made in the customs declaration made in respect of the goods, the person making the claim is to be treated as having made a declaration that the eligibility criterion in regulation 16E(1)(b) is met.

Commencement Information

I36 Reg. 16H in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Granting claims for relief U.K.

16I.— (1) A claim for relief must be granted by HMRC if—

(a) the eligibility criteria are met; and

(b) the relief, as determined in accordance with paragraphs (2) or (3), is a positive amount.

(2) Where a claim for relief from duty charged under section 30A(3) of the Act is granted, the relief from liability is—

(a) where the goods would not be chargeable to duty under regulation 5 if they were goods for the internal market, full relief; and

(b) in any other case, the difference between the liability incurred under section 30A(3) Act and the amount of duty that would have been chargeable in accordance with regulation 8 if the goods were relevant goods for the purposes of Chapter 3.

(3) Where a claim for relief from duty charged under section 40A(1)(b) of the Act is granted, the relief from liability is—

(a) where the goods are chargeable to duty under section 40A(1)(a), the difference between the liability incurred under section 40A(1)(b) and the amount of duty that would have been chargeable in accordance with regulation 14 if the goods were relevant goods for the purposes of Chapter 4; and

(b) in any other case, full relief.

Commencement Information

I37 Reg. 16I in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Notifications further to a claim for relief U.K.

16J.— (1) Notification of receipt of the claim for relief must be given by HMRC to the claimant—

(a) as soon as practicable after the date on which HMRC receive the claim and the evidence required in support of the claim; and

(b) in any event, by no later than the expiry of the period of 30 days beginning with that date.

(2) Where a claim for relief is made in the customs declaration made in respect of the goods and the declaration is accepted or rejected before the expiry of the period in paragraph (1), the claimant is to be treated as having been notified under paragraph (1).

(3) Notification that HMRC have determined to grant or refuse a claim for relief must be given to the claimant, and HMRC must do so—

(a) in relation to a claim for relief that is less than the full liability incurred, or where HMRC have determined to refuse a claim, with the notification of liability to duty in respect of the goods to which the claim relates, unless that notification of liability has been given before the date of the determination; and

(b) as soon as practicable after the date on which notification is given under paragraph (1) and, in any event, by no later than the expiry of the period of 120 days beginning with that date.

(4) Where—

(a) a claim is made for full relief;

(b) the claim is made in the customs declaration that was made in respect of the goods; and

(c) the declaration is accepted,

the claimant is to be treated as having been notified under paragraph (3).

(5) Reasons for a refusal of a claim for relief must be given with the notification of the determination.

(6) Where HMRC fail to comply with paragraph (1) or (3), the claim is to be treated as refused.

Commencement Information

I38 Reg. 16J in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

SECTION 3 U.K. Repayment

Repayment of duty U.K.

16K.— (1) Where—

(a) a claim for relief is granted in respect of goods; and

(b) the claimant has paid a liability to duty chargeable under section 30A(3) or 40A(1)(b) of the Act in respect of the goods before the claim is granted,

HMRC must, when notification of the grant is given, repay the claimant the amount referred to in regulation 16I(2) or (3), as the case may be.

(2) Paragraph (3) applies where—

(a) a period of 30 working days has expired since the date that a notification of the grant is given;

(b) HMRC have failed to repay some or all of the duty that is due to be repaid under paragraph (1) (“the outstanding amount”); and

(c) that failure is substantially the fault of HMRC.

(3) HMRC must pay interest at the applicable rate on the outstanding amount for the period—

(a) beginning with the day after the date on which the period mentioned in paragraph (2)(a) expires; and

(b) ending with the date on which the outstanding amount is paid in full.

(4) In this regulation—

(a) “the applicable rate” means the rate of interest provided by regulations for the purposes of section 197(2)(f) of the Finance Act 1996;

(b) “working day” means any day except—

(i) a Saturday or Sunday;

(ii) Good Friday or Christmas day; or

(iii) a bank holiday within the meaning of section 1 of the Banking and Financial Dealings Act 1971, including those bank holidays in part only of the United Kingdom;

(c) where the claim for relief is made by a relief agent on behalf of a principal the references to “the claimant” are to the principal.

Commencement Information

I39 Reg. 16K in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

SECTION 4 U.K. Errors and breaches

Section 4 – interpretation U.K.

16L.   In this Section “error” does not include an error that results in the claimant being granted relief despite not meeting the eligibility criterion in regulation 16E(1)(b).

Commencement Information

I40 Reg. 16L in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Notification of limit breach or error U.K.

16M.— (1) Paragraph (2) applies where—

(a) a claim for relief is granted; and

(b) any of the following occurs—

(i) the claimant becomes aware that the eligibility criterion in regulation 16E(1)(b) was not met at the time of the grant of the claim;

(ii) the claimant becomes aware of an error in the claim for relief; or

(iii) the claimant becomes aware that relief has been granted in error.

(2) The claimant must—

(a) notify HMRC as soon as practicable of details of, as the case may be—

(i) the circumstances in which relief was granted despite the eligibility criterion in regulation 16E(1)(b) not being met, including when that first came to the claimant’s attention; or

(ii) the error, including when it first came to the claimant’s attention; and

(b) make the notification in such form, and accompany it with such additional information or documentation, as HMRC may provide by notice.

(3) If required to do so by an HMRC officer by notice, the claimant must provide to the officer such additional information regarding the matters referred to in paragraph (1)(b) as the officer requires.

(4) Where a relief agent made the claim on behalf of a principal and paragraph (1)(b)(i) applies, the references in paragraphs (2) and (3) to the claimant are to be read as referring to the principal.

(5) Where—

(a) a relief agent made the claim on behalf of a principal; and

(b) the principal becomes aware of a matter described in paragraph (1)(b)(ii) or (iii),

paragraphs (2) and (3) apply to the principal as if the references to the claimant were to the principal.

Commencement Information

I41 Reg. 16M in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Rectification of errors in claim for relief U.K.

16N.   Where a notification of an error in a claim for relief is received by HMRC before the claim for relief is granted or repayment made—

(a) an HMRC officer must correct the claim, or direct the claimant to make the necessary corrections; and

(b) any liability to duty under section 30A(3) or 40A(1) of the Act is determined on the basis of the information contained in the claim for relief as corrected (or required to be corrected) under this regulation.

Commencement Information

I42 Reg. 16N in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Liability to duty due to error U.K.

16O.— (1) Where—

(a) a claim for relief is granted in respect of goods; and

(b) an HMRC officer becomes aware of an error in the claim for relief which resulted in a grant of an amount of relief to which the claimant was not entitled, whether by way of a notification under regulation 16M or otherwise,

the claimant is liable to duty under section 30A(3) or 40A(1) in respect of the goods, as the case may be.

(2) Where paragraph (1) applies, the liability referred to in that paragraph is the amount of duty corresponding to the relief to which the claimant was not entitled.

(3) Paragraph (4) applies for the purposes of determining the date (“the relevant date”) on which the liability arises.

(4) The relevant date is—

(a) the date stated in the notification required to be made under regulation 16M(2) as the date on which the error first came to the attention of the person making the notification; or

(b) where—

(i) details of the error are not notified to HMRC as required; or

(ii) HMRC are not satisfied with the details notified,

the date the claim was granted.

(5) It is to be presumed that the claimant is notified of the liability on the relevant date.

(6) Where the claim for relief is made by a relief agent on behalf of a principal the references to “the claimant” in this regulation are to the principal.

Commencement Information

I43 Reg. 16O in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Liability to duty on limit breach U.K.

16P.— (1) Where—

(a) a claim for relief is granted in respect of goods; and

(b) an HMRC officer becomes aware that the eligibility criterion in regulation 16E(1)(b) was not met at the time of the grant of the claim, whether by way of a notification under regulation 16M or otherwise,

the claimant is liable to duty under section 30A(3) or 40A(1), as the case may be.

(2) Where paragraph (1) applies, the liability referred to in that paragraph—

(a) is the amount of duty corresponding to the relief granted in relation to the claim; and

(b) is to be treated as arising on the date the claim was granted.

(3) Where a notification is given under regulation 16M(2)(a)(i), it is to be presumed that the claimant is notified of the liability on the date stated in the notification as the date on which the fact that the eligibility criterion was not met first came to the attention of the person making the notification.

(4) Where—

(a) no notification is given under regulation 16M(2)(a)(i); or

(b) HMRC are not satisfied with the details notified,

HMRC must notify the claimant of the liability.

(5) Where a liability is incurred under this regulation, the claimant must pay interest at the applicable rate on the liability for the period—

(a) beginning with the day after the date on which the claim for relief is granted; and

(b) ending with the date on which the liability is paid in full.

(6) In this regulation “the applicable rate” means the State aid recovery interest rate fixed in accordance with Article 9 of Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EC) No 659/1999 laying down detailed rules for the application of Article 93 of the EC Treaty and applied in accordance with Article 11 of that Regulation.

(7) A notification of liability required by paragraph (4) may be withdrawn if an HMRC officer considers there to be sufficient evidence to demonstrate that the eligibility criterion in regulation 16E(1)(b) was met at the time of the grant of the claim.

(8) Where the claim for relief is made by a relief agent on behalf of a principal the references to “the claimant” in this regulation are to the principal.

Commencement Information

I44 Reg. 16P in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Recovery of duty U.K.

16Q.— (1) Paragraph 12 of Schedule 6 to the Act applies to an amount due by way of duty incurred under regulation 16P as if it were an amount due by way of import duty.

(2) The power to recover by virtue of paragraph (1) is subject to the limitation period specified in Article 17 of Council Regulation (EU) 2015/1589 of 13 July 2015 laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union.

(3) This regulation does not restrict any other way in which duty may be recovered.

Commencement Information

I45 Reg. 16Q in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

Agents’ liability U.K.

16R.   If a relief agent makes a claim for relief on behalf of a principal, the agent is also liable to duty chargeable under section 30A(3) or 40A(1) arising under regulation 16O in relation to the claim if—

(a) the agent acts at a time when the appointment has not been disclosed to HMRC as mentioned in regulation 16C(3);

(b) the agent purports to act on behalf of the principal when the agent has no authority to do so; or

(c) the agent provides false information in connection with a claim for relief and the agent knew, or ought reasonably to have known, that the information was false.

Commencement Information

I46 Reg. 16R in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

SECTION 5 U.K. Records

Record keeping U.K.

16S.— (1) The claimant must keep and preserve such records in respect of any claim for relief made under this Chapter, and in such form, as specified in a notice published by HMRC.

(2) Where the claim for relief is made by a relief agent on behalf of a principal—

(a) the reference to “the claimant” in paragraph (1) is to the principal; and

(b) the agent must provide to the claimant such documents as may be specified in a notice published by HMRC.

(3) HMRC must publish a notice specifying—

(a) the records to be kept and preserved under paragraph (1);

(b) the form in which they are to be kept; and

(c) the period for which they must be kept and preserved.]

Commencement Information

I47 Reg. 16S in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)