Taxation (Cross-border Trade) Bill (HC Bill 128)

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

18 (1) If the TRA makes a recommendation under paragraph 14(3)(b) that goods
should be subject to a tariff rate quota, the Secretary of State must decide
whether to accept or reject the recommendation.

(2) 5The Secretary of State may reject the recommendation only if the Secretary
of State is satisfied that—

(a) making goods subject to a tariff rate quota in accordance with the
recommendation does not meet the economic interest test (see
paragraph 21), or

(b) 10it is not otherwise in the public interest to accept the
recommendation.

(3) If the recommendation is rejected, the Secretary of State must—

(a) publish notice of the TRA’s final affirmative determination in
relation to the goods, of the recommendation and of the rejection of
15it,

(b) notify interested parties (see paragraph 29(3)) accordingly, and

(c) lay a statement before the House of Commons setting out the reasons
for rejecting the recommendation.

(4) If the recommendation is accepted, the Secretary of State—

(a) 20must publish notice of the TRA’s final affirmative determination in
relation to the goods, of the recommendation and of the acceptance
of it,

(b) must notify interested parties accordingly, and

(c) is required under section 13 to make provision by public notice to
25give effect to the recommendation.

(5) See paragraphs 19 and 20 for variation or revocation of a tariff rate quota.

Reviews

19 (1) Regulations may make provision for, or in connection with, reviews by the
TRA of the continuing application of a definitive safeguarding amount or
30the continuation of a tariff rate quota.

(2) References in this paragraph to “a review” are to a review by virtue of
provision made under sub-paragraph (1).

(3) Regulations under sub-paragraph (1) may, among other things, provide for
a review to consider—

(a) 35whether the continuing application of a definitive safeguarding
amount, or the continuation of a tariff rate quota, is necessary—

(i) to remove the serious injury, or to prevent further serious
injury, caused by the importation of the goods in increased
quantities to UK producers of the goods, or

(ii) 40to facilitate the adjustment of those UK producers to the
importation of the goods in increased quantities;

(b) whether serious injury to UK producers of the goods would be likely
to continue or recur if the application of a definitive safeguarding
amount were to expire or be varied or revoked or if a tariff rate quota
45were to expire or be varied or revoked;

(c) whether replacing the application of a definitive safeguarding
amount with a tariff rate quota, or replacing a tariff rate quota with
the application of a definitive safeguarding amount, would better
meet the aim of—

(i) 5removing serious injury to UK producers of the goods, or

(ii) facilitating the adjustment of those UK producers to the
importation of the goods in increased quantities;

(d) whether the adjustment plan referred to in paragraph 14(5)(b) is
being complied with.

(4) 10Regulations under sub-paragraph (1) may, among other things, make—

(a) provision for the TRA to investigate certain matters;

(b) provision for the period for which a definitive safeguarding amount
applies to goods by public notice under section 13, or for which
goods are subject to a tariff rate quota by public notice under that
15section, to be treated as continuing (where it would otherwise cease
to do so) while a review is ongoing;

(c) other provision about the conduct of a review.

(5) Paragraph 10(2) of Schedule 4 applies to regulations made by virtue of sub-
paragraph (4)(c) in relation to a review as it applies to regulations under
20paragraph 10(1) of that Schedule in relation to a dumping or a subsidisation
investigation.

(6) Regulations may make provision for or in connection with—

(a) the TRA recommending to the Secretary of State that—

(i) the application of a definitive safeguarding amount to goods
25should be varied, revoked or replaced with a tariff rate quota,
or

(ii) a tariff rate quota to which goods are subject should be
varied, revoked or replaced with the application of a
definitive safeguarding amount, and

(b) 30the Secretary of State accepting or rejecting such a recommendation.

(7) Where, by virtue of provision made under sub-paragraph (6), the Secretary
of State accepts a recommendation that the application of a definitive
safeguarding amount to goods, or a tariff rate quota to which goods are
subject, should be varied or revoked, the Secretary of State—

(a) 35must publish notice of the recommendation and of the acceptance of
it,

(b) must notify interested parties (see paragraph 29(3)) accordingly, and

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

(8) 40The variation of the application of a definitive safeguarding amount to
goods which the TRA may recommend to the Secretary of State by virtue of
regulations under sub-paragraph (6) may take the form of one or both of the
following—

(a) varying the period for which a definitive safeguarding amount is
45applicable (including extending it beyond the period referred to in
paragraph 15(2)(b));

(b) varying how a definitive safeguarding amount should be
determined such that a lower amount of import duty is applicable.

(9) The variation of a tariff rate quota which the TRA may recommend to the
Secretary of State by virtue of regulations under sub-paragraph (6) may take
the form of one or more of the following—

(a) increasing the amount of the quota;

(b) 5varying the allocation of the quota;

(c) reducing the rates of import duty that apply to goods subject to the
quota;

(d) reducing the part of the period for which the amount of the quota is
lower or for which import duty at a higher rate applies (so that the
10amount of the quota is increased, or import duty applies at a lower
rate, more quickly);

(e) varying the period for which goods are subject to the quota
(including extending it beyond the period referred to in paragraph
16(2)(b)).

(10) 15Where, by virtue of provision made under sub-paragraph (6), the Secretary
of State accepts a recommendation that, for the first time, a definitive
safeguarding amount should be applicable to goods or goods should be
subject to a tariff rate quota, the Secretary of State—

(a) must publish notice of the recommendation and of the acceptance of
20it,

(b) must notify interested parties accordingly, and

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

Variation or revocation following an international dispute decision

20 (1) 25Regulations may make provision for or in connection with—

(a) the TRA recommending to the Secretary of State that the application
of a definitive safeguarding amount to goods, or a tariff rate quota to
which goods are subject, should be varied or revoked in light of an
international dispute decision, and

(b) 30the Secretary of State accepting or rejecting such a recommendation.

(2) The regulations may, among other things—

(a) provide for the TRA to investigate certain matters for the purposes
of determining whether to make a recommendation to the Secretary
of State and what to recommend;

(b) 35make provision about the conduct of such an investigation;

(c) provide for the suspension, by public notice given by the Secretary
of State, of the application of a definitive safeguarding amount or the
making of goods subject to a tariff rate quota.

(3) Paragraph 10(2) of Schedule 4 applies to regulations made by virtue of sub-
40paragraph (2)(b) in relation to such an investigation as it applies to
regulations under paragraph 10(1) of that Schedule in relation to a dumping
or a subsidisation investigation.

(4) Where, by virtue of provision made under the regulations, the Secretary of
State accepts a recommendation that the application of a definitive
45safeguarding amount to goods, or a tariff rate quota to which goods are
subject, should be varied or revoked, the Secretary of State—

(a) must publish notice of the recommendation and of the acceptance of
it,

(b) must notify interested parties (see paragraph 29(3)) accordingly, and

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

(5) Paragraph 19(8) and (9) apply for the purposes of regulations under this
5paragraph as they apply for the purposes of regulations under paragraph
19(6).

(6) An “international dispute decision” means—

(a) a report of a panel or Appellate Body that is adopted by the Dispute
Settlement Body of the WTO, or

(b) 10if not within paragraph (a), a decision under the dispute settlement
procedures of an arrangement relating to trade to which Her
Majesty’s government in the United Kingdom is a party with the
government of a foreign country or territory.

Part 5 15Supplementary

The economic interest test

21 (1) This paragraph applies if the TRA or the Secretary of State is considering, for
the purposes of this Schedule, whether the TRA or the Secretary of State is
satisfied that the application of a safeguarding remedy meets or does not
20meet the economic interest test.

(2) The economic interest test is met in relation to the application of a
safeguarding remedy if the application of the remedy is in the economic
interest of the United Kingdom.

(3) When considering whether or not the application of a safeguarding remedy
25is in the economic interest of the United Kingdom, the TRA or the Secretary
of State must—

(a) take account of the following so far as relevant—

(i) the economic significance of affected industries and
consumers in the United Kingdom,

(ii) 30the likely impact on affected industries and consumers in the
United Kingdom,

(iii) the likely impact on particular geographic areas, or particular
groups, in the United Kingdom, and

(iv) the likely consequences for the competitive environment, and
35for the structure of markets for goods, in the United
Kingdom, and

(b) take account of such other matters as the TRA or, as the case may be,
the Secretary of State considers relevant.

(4) In this paragraph—

(a) 40references to the application of a safeguarding remedy are to—

(i) applying a provisional safeguarding amount or a definitive
safeguarding amount to goods, or

(ii) making goods subject to a tariff rate quota;

(b) “affected industries and consumers” means industries and
45consumers that would be affected if the safeguarding remedy were,
or were not, to be applied;

(c) “industries” includes—

(i) producers and suppliers of goods or services, and

(ii) importers, distributors and retailers of goods;

(d) “consumers” includes users of goods or services.

5Suspension of safeguarding remedies

22 (1) Regulations may make provision for or in connection with—

(a) the TRA recommending to the Secretary of State that the application
of a safeguarding remedy should be suspended, and

(b) the Secretary of State accepting or rejecting such a recommendation.

(2) 10The regulations must secure that the TRA may make such a
recommendation to the Secretary of State only if the TRA is satisfied that
market conditions have temporarily changed such that the serious injury
caused to UK producers of the goods would be unlikely to recur as a result
of the suspension.

(3) 15Regulations may make provision for the purposes of sub-paragraph (2)
about what constitutes or does not constitute “market conditions” or a
temporary change in such conditions.

(4) Regulations under sub-paragraph (1) may, among other things, make—

(a) provision for the TRA to investigate certain matters;

(b) 20provision about the conduct of such an investigation;

(c) provision about the period for which a suspension may have effect;

(d) provision about whether that period counts towards the period for
which the suspended remedy applies.

(5) Paragraph 10(2) of Schedule 4 applies to regulations made by virtue of sub-
25paragraph (4)(b) in relation to an investigation as it applies to regulations
under paragraph 10(1) of that Schedule in relation to a dumping or a
subsidisation investigation.

(6) Where, by virtue of provision made under sub-paragraph (1), the Secretary
of State accepts a recommendation that the application of a safeguarding
30remedy should be suspended, the Secretary of State—

(a) must publish notice of the recommendation and of the acceptance of
it,

(b) must notify interested parties (see paragraph 29(3)) accordingly, and

(c) is required under section 13 to make provision by public notice to
35give effect to the recommendation.

(7) References in this paragraph to the application of a safeguarding remedy
have the same meaning as in paragraph 21.

Exceptions

23 (1) For the purpose of giving effect to arrangements between Her Majesty’s
40government in the United Kingdom and the government of a foreign
country or territory, regulations may make provision excepting goods
originating from a specified foreign country or territory from the application
of this Schedule, or from specified provision made by or under it.

(2) Regulations may make provision requiring goods originating from a
specified foreign country or territory or description of foreign country or
territory to be excepted from the goods in relation to which the TRA may
make a recommendation under provision made by or under this Schedule.

5Restrictions on successive safeguarding remedies

24 (1) This paragraph applies if—

(a) the TRA makes a recommendation under paragraph 14(3) that a
definitive safeguarding amount should be applicable to goods or
that goods should be subject to a tariff rate quota, and

(b) 10a definitive safeguarding amount has previously been applied to
those goods, or they have previously been subject to a tariff rate
quota, as a result of an earlier recommendation made by the TRA
under that paragraph.

(2) In this paragraph, references to the “previous safeguarding remedy”, in
15relation to goods, are to—

(a) the most recent application of a definitive safeguarding amount to
the goods, or

(b) the tariff rate quota to which the goods were most recently subject.

(3) The Secretary of State may not accept the recommendation if the period for
20which a definitive safeguarding amount would be applicable to the goods,
or for which the goods would be subject to a tariff rate quota, would (by
virtue of paragraph 15(2)(c) or 16(2)(c)) begin before the end of the restricted
period.

(4) The restricted period means—

(a) 25such period, beginning with the day after the date on which the
period of the previous safeguarding remedy ended, as is equal to the
period of that previous safeguarding remedy, or

(b) if it would result in a period of a greater length than the period
referred to in paragraph (a), the period of two years beginning with
30the day after the date on which the period of the previous
safeguarding remedy ended.

(5) Sub-paragraph (3) does not prevent the Secretary of State from accepting the
recommendation if—

(a) the specified period referred to in paragraph 14(3)(a) or, as the case
35may be, paragraph 14(3)(b) (“the recommended period”) does not
exceed 180 days,

(b) the date on which the period of the previous safeguarding remedy
began is at least 1 year before the date on which the recommended
period would (by virtue of paragraph 15(2)(c) or 16(2)(c)) begin, and

(c) 40no more than 2 notices have been published under paragraph
17(4)(a) or 18(4)(a) in relation to the goods in the period of 5 years
ending with the day before the date on which the recommended
period would begin.

Interaction with anti-dumping remedies and anti-subsidy remedies

25 In determining for the purposes of any provision of this Schedule, or of
regulations made under it, what is necessary to prevent or remove serious
injury to UK producers of particular goods, the TRA must take account of—

(a) 5any requirement to give a guarantee in respect of the goods which
applies under paragraph 15 of Schedule 4,

(b) any application of an anti-dumping amount or a countervailing
amount to the goods under section 13, and

(c) any undertaking which has been accepted in respect of the goods
10under provision made by or under Part 5 of Schedule 4.

Investigations regarding repayments

26 (1) Regulations may provide for the TRA to investigate specified matters for the
purpose of determining whether—

(a) a repayment of a provisional safeguarding amount or a definitive
15safeguarding amount,

(b) the repayment of an amount of import duty charged by virtue of
provision made under section 13 in respect of goods which are
subject to a tariff rate quota, or

(c) the repayment of interest paid in respect of any such amounts,

20should be made under regulations made under paragraph 10 of Schedule 6.

(2) The regulations may make provision about the conduct of any such
investigation.

(3) Paragraph 10(2) of Schedule 4 applies to those regulations in relation to such
an investigation as it applies to regulations under paragraph 10(1) of that
25Schedule in relation to a dumping or a subsidisation investigation.

Reconsideration, reviews and appeals

27 Regulations may make provision for or in connection with—

(a) the reconsideration by the TRA of decisions made by the TRA under
provision made by or under this Schedule, and

(b) 30the review or appeal of decisions made by the TRA or the Secretary
of State under provision made by or under this Schedule.

Notices

28 (1) Where a notice is required to be published or given by a provision made by
or under this Schedule, regulations may make provision about—

(a) 35the form of the notice;

(b) its content;

(c) the manner of publication;

(d) the means by which it is given;

(e) the time or date on which it is published or given or is to be treated
40as published or given.

(2) Such regulations may, among other things, provide—

(a) for some of the content of the notice to be contained in a separate
report to which the notice refers, and

(b) for that report to be published or for it to be given, or otherwise made
available to, the persons to whom the notice is required to be given.

(3) The provision made by regulations under this paragraph about the content
of a notice is in addition to any such provision made by or under any other
5provision of this Schedule.

(4) Sub-paragraph (1)(c) does not apply to a public notice under provision made
under paragraph 20(2)(c) (see section 37(5)).

Interpretation

29 (1) In this Schedule—

• 10“definitive safeguarding amount” has the meaning given by paragraph
  14(3)(a);

• “directly competitive goods” has the meaning given by paragraph 5;

• “final affirmative determination”, in relation to goods, has the meaning
  given by paragraph 9(5)(a);

• 15“final negative determination”, in relation to goods, has the meaning
  given by paragraph 9(5)(b);

• “foreign country or territory” means a country or territory outside the
  United Kingdom;

• importation in “increased quantities” has the meaning given by
  20paragraph 1;

• “interested parties” has the meaning given by sub-paragraph (3);

• “like goods”, in relation to goods, has the meaning given by paragraph
  4;

• “the period of a provisional remedy”, in respect of goods, has the
  25meaning given by paragraph 13(5);

• “provisional affirmative determination”, in relation to goods, has the
  meaning given by paragraph 9(2);

• “provisional safeguarding amount” has the meaning given by
  paragraph 11(3);

• 30“regulations” means regulations made by the Secretary of State;

• “safeguarding investigation” has the meaning given by paragraph 6(2);

• “serious injury” to UK producers of particular goods has the meaning
  given by paragraph 2;

• “tariff rate quota” has the meaning given by paragraph 14(3)(b);

• 35“UK producers”, of particular goods, has the meaning given by
  paragraph 3.

(2) References in this Schedule to the economic interest test are to be construed
in accordance with paragraph 21.

(3) References in a provision of this Schedule to “interested parties” means the
40governments of such foreign countries or territories, or such other persons,
as may be specified in regulations made under this sub-paragraph for the
purposes of the provision in question.

Section 20

SCHEDULE 6 Import duty: notification of liability, payment etc

Notification of liability to pay import duty

1 A liability of a person to pay import duty may not be enforced unless the
5person has been notified of the liability in accordance with the provision
made by or under this Schedule.

2 (1) If HMRC consider that a person is liable to pay import duty, they must
notify the person of that fact specifying—

(a) the amount of the duty,

(b) 10the circumstances giving rise to the liability, and

(c) the date on or before which the duty must be paid.

(2) The notification may be given in such form and manner as HMRC consider
appropriate.

3 (1) HMRC Commissioners may by regulations make provision—

(a) 15specifying cases where it is to be presumed that a person has been
notified under paragraph 2 (including cases where the presumption
may not be rebutted),

(b) specifying cases in which the duty to notify under paragraph 2 is
taken to be met by the doing of some other specified act, or

(c) 20specifying cases in which neither paragraph 1 nor 2 apply.

(2) Regulations made under sub-paragraph (1)(c)—

(a) must contain provision for securing that the existence of a liability to
pay import duty is acknowledged in some other way (for example,
by the provision of documents or information to HMRC in which a
25person sets out or self-assesses the liability), and

(b) may contain any other provision that HMRC Commissioners
consider appropriate for the purpose of securing the enforceability of
the liability (for example, by requiring a guarantee to be given in
respect of any liability to import duty).

4 (1) 30The general rule is that a notification under paragraph 2 of a liability to pay
import duty must be given before the end of the period of 3 years beginning
with the day on which the liability was incurred.

(2) If the liability is incurred in circumstances where, in the opinion of an
HMRC officer, an offence has been committed (whether or not the offence
35relates in any way to import duty), the period of 3 years for notifying is
extended to a period of 20 years.

Payment of import duty

5 (1) HMRC Commissioners must make regulations about the payment of import
duty.

(2) 40The regulations may (among other things) make provision about—

(a) the date on or before which a liability to pay import duty must be
discharged,

(b) cases in which the period for discharging the liability is extended
(either generally or in relation to particular cases),

(c) how a liability to pay import duty may be discharged, and

(d) interest in respect of import duty.

(3) The provision that may be made within sub-paragraph (2)(d) includes
provision—

(a) 5for interest to be recoverable as if it were an amount due by way of
import duty,

(b) determining the period during which interest is to be payable,

(c) for exceptions from the requirement to pay interest, and

(d) about the rate of interest (which may be by reference to a rate payable
10by the Bank of England, or by any other person, in respect of any
amount).

Guarantees

6 (1) HMRC Commissioners must make regulations about the giving of
guarantees in respect of any liability to pay import duty.

(2) 15The provision that may be made by the regulations includes (among other
things) provision about—

(a) the form of a guarantee,

(b) the circumstances in which a guarantee is to be regarded as
discharged (in full or in part), and

(c) 20the steps required to be taken by HMRC officers in cases where the
guarantee is to be enforced or discharged (to any extent).

7 In the case of goods declared for the free-circulation procedure, regulations
under paragraph 6 must provide that, if a guarantee as to the payment of a
liability to import duty is given in accordance with specified conditions, the
25liability is deferred until such time as is specified.

8 (1) In the case of goods declared for a special Customs procedure, the provision
that may be made by regulations under paragraph 6 includes provision
requiring—

(a) a guarantee to be given in respect of a liability to import duty that
30might be incurred in respect of particular goods declared for a
special Customs procedure, or

(b) a guarantee (a “comprehensive guarantee”) to be given in respect of
a liability to import duty that might be incurred in respect of all
goods declared for a special Customs procedure.

(2) 35In the case of a comprehensive guarantee, the regulations—

(a) must provide that the guarantee is to be given only by persons for the
time being authorised in accordance with the regulations, and

(b) may provide for the guarantee to be given in respect of only a portion
of the liability to import duty that might be incurred (as determined
40in accordance with the regulations).

(3) Regulations under paragraph 6 may make provision for a guarantee in
respect of any liability to import duty in respect of any goods declared for a
special Customs procedure to extend also to any liability to import duty in
respect of any goods declared for the free-circulation procedure.

9 45For the purposes of paragraphs 6 to 8 any reference to a liability to import
duty includes a potential liability to import duty.