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

[F1 CHAPTER 5 U.K. Reliefs and repayment

Textual Amendments

F1 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);

F2 ...

“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);

[F3 “single undertaking”, in relation to a person, has the meaning in the legislation referred to in the sub-paragraph of regulation 16E(2) which applies in relation to that person;]

[F4 “undertaking lead” has the meaning given in regulation 16CA.]

Textual Amendments

F2 Words in reg. 16A omitted (12.6.2024) by virtue of The Customs (Miscellaneous Amendments) (No. 2) Regulations 2024 (S.I. 2024/672), regs. 1, 7(2)(a)

F3 Words in reg. 16A substituted (12.6.2024) by The Customs (Miscellaneous Amendments) (No. 2) Regulations 2024 (S.I. 2024/672), regs. 1, 7(2)(b)

F4 Words in reg. 16A inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 4; S.I. 2023/1050, reg. 2(b)

Commencement Information

I1 Reg. 16A in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I2 Reg. 16A in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I3 Reg. 16A in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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

I4 Reg. 16B in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I5 Reg. 16B in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I6 Reg. 16B in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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

I7 Reg. 16C in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I8 Reg. 16C in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I9 Reg. 16C in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

[F5 Undertaking lead U.K.

16CA.— (1) For the purposes of this Chapter, an undertaking lead is a person in a single undertaking appointed as the undertaking lead for the single undertaking and notified to HMRC.

(2) The person appointed must be established in the UK.

(3) The appointment must be in accordance with rules specified in a notice published by HMRC.

(4) The notification must be in the form and manner and include such information and evidence as specified in a notice published by HMRC.

(5) The appointment has effect until—

(a) it is substituted by a new appointment made in accordance with this regulation;

(b) it is resigned by the undertaking lead in the form and manner specified in a notice published by HMRC;

(c) it is cancelled by HMRC under paragraph (6);

(d) the undertaking lead ceases to be established in the UK; or

(e) the undertaking lead ceases to be part of the single undertaking.

(6) Where an undertaking lead fails to comply with any obligation under this Chapter, HMRC may cancel the appointment in the form and manner specified in a notice published by HMRC.

(7) A person whose appointment as an undertaking lead has been cancelled under paragraph (6) may not be appointed again for one year following the cancellation unless HMRC consents to the appointment.

(8) HMRC must publish a notice specifying the matters referred to in paragraphs (3) to (6).]

Textual Amendments

F5 Reg. 16CA inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 5; S.I. 2023/1050, reg. 2(b)

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—

[F6 (a) goods in respect of which a liability to duty chargeable under section 30A(3) of the Act is incurred and which are not relevant goods for the purposes of Chapter 3 at the time that the liability 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.

Textual Amendments

F6 Reg. 16D(1)(a) substituted (coming into force in accordance with reg. 1(2) of the amending S.I.) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), reg. 6

Commencement Information

I10 Reg. 16D in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I11 Reg. 16D in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I12 Reg. 16D in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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; F7 ...

[F8 (aa) an appointment of an undertaking lead for the single undertaking of which the claimant is part is in effect at the time of the claim and the appointment has been notified to HMRC in accordance with regulation 16CA;

(ab) the undertaking lead has met the requirements in regulation 16SA; 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) [F9 Commission Regulation (EU) 2023/2831 of 13 December 2023] on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid;

(b) [F10 Commission Regulation (EU) 2023/2832 of 13 December 2023] 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.

Textual Amendments

F7 Word in reg. 16E(1) omitted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by virtue of The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 7(a); S.I. 2023/1050, reg. 2(b)

F8 Reg. 16E(1)(aa)(ab) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 7(b); S.I. 2023/1050, reg. 2(b)

F9 Words in reg. 16E(2)(a) substituted (12.6.2024) by The Customs (Miscellaneous Amendments) (No. 2) Regulations 2024 (S.I. 2024/672), regs. 1, 7(3)(a)

F10 Words in reg. 16E(2)(b) substituted (12.6.2024) by The Customs (Miscellaneous Amendments) (No. 2) Regulations 2024 (S.I. 2024/672), regs. 1, 7(3)(b)

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

I13 Reg. 16E in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I14 Reg. 16E in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I15 Reg. 16E in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

Waiver of [F11 eligibility criteria] U.K.

16F.— (1) HMRC may grant a claim for relief even where [F12 one or all of the eligibility criteria in regulation 16E(1)(a)(ii) or (iii) or (ab) are] 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.

Textual Amendments

F11 Words in reg 16F heading substituted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 8; S.I. 2023/1050, reg. 2(b)

F12 Words in reg. 16F(1) substituted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 9; S.I. 2023/1050, reg. 2(b)

Commencement Information

I16 Reg. 16F in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I17 Reg. 16F in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I18 Reg. 16F in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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 [F13 , or treated as 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.

[F14 (1A) A claimant must notify the undertaking lead for the single undertaking of which it is part of a claim for relief in respect of goods before or at the time of making the claim.

(1B) Where an appeal was made in respect of the amount of duty to which the claim relates and the appeal has been determined, a period equal to the period between the commencement and determination of the appeal is to be added to the period of 3 years in paragraph (1)(b).

(1C) Where by virtue of force majeure or unforeseeable circumstances it would be unreasonable to expect a person to make a claim for relief in time, HMRC may consent to the making of a late claim.]

(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 [F15 goods that has not been withdrawn or treated as withdrawn;

unless an HMRC officer consents to the making of the further claim;]

(b) where the goods are catch caught by a vessel which is not a British ship; F16 ...

(c) where a claim for the relief was previously made and determined unless an HMRC officer consents to the making of the further claim [F17 ; or

(d) where—

(i) an appeal has been made in respect of the amount of liability to duty to which the claim would apply; and

(ii) the appeal has not been determined.]

(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).

Textual Amendments

F13 Words in reg. 16G(1)(b)(i) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 10(a); S.I. 2023/1050, reg. 2(b)

F14 Reg. 16G(1A)-(1C) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 10(b); S.I. 2023/1050, reg. 2(b)

F15 Words in reg. 16G(2)(a)(ii) substituted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 10(c)(i); S.I. 2023/1050, reg. 2(b)

F16 Word in reg. 16G(2) omitted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by virtue of The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 10(c)(ii); S.I. 2023/1050, reg. 2(b)

F17 Reg. 16G(2)(d) and word inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 10(c)(iii); S.I. 2023/1050, reg. 2(b)

Commencement Information

I19 Reg. 16G in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I20 Reg. 16G in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I21 Reg. 16G in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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

I22 Reg. 16H in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I23 Reg. 16H in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I24 Reg. 16H in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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 [F18 , at the time the liability to duty is incurred,] 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.

Textual Amendments

F18 Words in reg. 16I(2)(a) inserted (coming into force in accordance with reg. 1(2) of the amending S.I.) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), reg. 11

Commencement Information

I25 Reg. 16I in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I26 Reg. 16I in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I27 Reg. 16I in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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 F19 ... before the expiry of the period in paragraph (1)[F20 (b)], the claimant is to be treated as having been notified under paragraph (1).

[F21 (2A) Where a claim for relief is made in the customs declaration made in respect of the goods and the declaration is rejected before the expiry of the period in paragraph (1)(b), the claim is to be treated as if it had never been made.]

(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, [F22 where the claim is granted], 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

[F23 (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—

(i) the period of 120 days beginning with that date; or

(ii) an extended period, not exceeding 30 days, beginning with the day when the period of 120 days expires, where HMRC reasonably require an extension in order to reach a determination.]

[F24 (3A) HMRC must notify the claimant within the period of 120 days referred to in paragraph (3)(b)(i) if HMRC reasonably require an extended period within paragraph (3)(b)(ii) to reach a determination.]

F25 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) [F26 Subject to paragraph (5A),] reasons for a refusal of a claim for relief must be given with the notification of the determination.

[F27 (5A) Where a claim for relief is made in the customs declaration made in respect of the goods and the claim is refused—

(a) the claimant is to be treated as having been notified under paragraph (3) when a notification of liability to duty in respect of the goods is given;

(b) paragraph (5) is to be disregarded; and

(c) the reasons for refusal of the claim must be given to the claimant on request by the claimant.]

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

Textual Amendments

F19 Words in reg. 16J(2) omitted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by virtue of The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 12(a)(i); S.I. 2023/1050, reg. 2(b)

F20 Word in reg. 16J(2) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 12(a)(ii); S.I. 2023/1050, reg. 2(b)

F21 Reg. 16J(2A) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 12(b); S.I. 2023/1050, reg. 2(b)

F22 Words in reg. 16J(3)(a) substituted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 12(c); S.I. 2023/1050, reg. 2(b)

F23 Reg. 16J(3)(b) substituted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 12(d); S.I. 2023/1050, reg. 2(b)

F24 Reg. 16J(3A) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 12(e); S.I. 2023/1050, reg. 2(b)

F25 Reg. 16J(4) omitted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by virtue of The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 12(f); S.I. 2023/1050, reg. 2(b)

F26 Words in reg. 16J(5) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 12(g); S.I. 2023/1050, reg. 2(b)

F27 Reg. 16J(5A) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 12(h); S.I. 2023/1050, reg. 2(b)

Commencement Information

I28 Reg. 16J in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I29 Reg. 16J in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I30 Reg. 16J in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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

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

I32 Reg. 16K in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I33 Reg. 16K in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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

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

I35 Reg. 16L in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I36 Reg. 16L in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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 [F28 or undertaking lead] 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 [F28 or undertaking lead] becomes aware of an error in the claim for relief; or

(iii) the claimant [F28 or undertaking lead] becomes aware that relief has been granted in error.

(2) The claimant [F29 or undertaking lead] 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 [F30 or undertaking lead’s] attention; or

(ii) the error, including when it first came to the claimant’s [F30 or undertaking lead’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 [F31 or undertaking lead] 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.

Textual Amendments

F28 Words in reg. 16M(1)(b) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 13(a); S.I. 2023/1050, reg. 2(b)

F29 Words in reg. 16M(2) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 13(a); S.I. 2023/1050, reg. 2(b)

F30 Words in reg. 16M(2)(a) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 13(b); S.I. 2023/1050, reg. 2(b)

F31 Words in reg. 16M(3) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 13(a); S.I. 2023/1050, reg. 2(b)

Commencement Information

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

I38 Reg. 16M in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I39 Reg. 16M in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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

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

I41 Reg. 16N in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I42 Reg. 16N in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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)

I44 Reg. 16O in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I45 Reg. 16O in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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—

[F32 (a) beginning with the later of—

(i) the date on which the claim for relief is granted; and

(ii) the date on which duty is repaid under regulation 16K; 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 [F33 Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EU) 2015/1589 laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union] 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.

Textual Amendments

F32 Reg. 16P(5)(a) substituted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 14(a) (with reg. 1(4)); S.I. 2023/1050, reg. 2(b)

F33 Words in reg. 16P(6) substituted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 14(b); S.I. 2023/1050, reg. 2(b)

Commencement Information

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

I47 Reg. 16P in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I48 Reg. 16P in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

[F34 Further liability to duty U.K.

16PA.— (1) Where regulation 16O or 16P applies and an aid beneficiary other than the claimant benefitted from the relief to which the claimant was not entitled, those regulations apply to that aid beneficiary and, subject to paragraph (2), references in those regulations to the claimant are treated as references to that aid beneficiary.

(2) Paragraph (1) does not apply to the references to the claimant in regulation 16O(1)(b), (2) and (6) and regulation 16P(8).

(3) In paragraph (1), “aid beneficiary” means a person who would be identified under the Commission Notice on the recovery of unlawful and incompatible State aid (C/2019/5396) as a person from whom recovery of incompatible aid may be made.]

Textual Amendments

F34 Reg. 16PA inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 15; S.I. 2023/1050, reg. 2(b)

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

I49 Reg. 16Q in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I50 Reg. 16Q in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I51 Reg. 16Q in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

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

I52 Reg. 16R in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I53 Reg. 16R in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I54 Reg. 16R in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

SECTION 5 U.K. Records [F35 and Information]

Textual Amendments

F35 Words in Pt. 2 Ch. 5 s. 5 heading inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 16; S.I. 2023/1050, reg. 2(b)

Record keeping U.K.

16S.— (1) The claimant [F36 and undertaking lead] must keep and preserve such records in respect of any claim for relief made under this Chapter, and in such form [F37 and for such period], 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.]

Textual Amendments

F36 Words in reg. 16S(1) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 17(a); S.I. 2023/1050, reg. 2(b)

F37 Words in reg. 16S(1) inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 17(b); S.I. 2023/1050, reg. 2(b)

Commencement Information

I55 Reg. 16S in force at 31.12.2020 for specified purposes by S.I. 2020/1629, reg. 1(4)

I56 Reg. 16S in force at 4.9.2021 for specified purposes by S.I. 2021/983, reg. 2 (see S.I. 2020/1629, reg. 1(4)(5))

I57 Reg. 16S in force at 2.10.2023 in so far as not already in force by S.I. 2023/1050, reg. 2(a) (see S.I. 2020/1629, reg. 1(4)(5))

F35 [F38 Provision of information by undertaking lead U.K.

16SA.— (1) An undertaking lead must provide to HMRC such information and evidence as specified in a notice published by HMRC which may include information in relation to—

(a) applicable de minimis state aid limits in relation to claimants and de minimis state aid granted to persons in the single undertaking for which it is the undertaking lead; and

(b) details of the persons in the single undertaking, the trade carried on by those persons and the relationships between those persons.

(2) The information and evidence must be given within such time and in the form and manner specified in the notice.

(3) If required to do so by notice in writing given by an HMRC officer, the undertaking lead must provide to the officer such information and evidence in relation to any claim for relief made by a person in the single undertaking as the officer reasonably specifies within such time and in the form and manner specified in the notice.

(4) HMRC must publish a notice specifying the matters referred to in paragraphs (1) and (2).]

Textual Amendments

F38 Reg. 16SA inserted (30.9.2023 for specified purposes, 2.10.2023 in so far as not already in force) by The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 (S.I. 2023/958), regs. 1(3), 18; S.I. 2023/1050, reg. 2(b)