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

Taxation (Cross-border Trade) BillPage 100

Repayment of import duty

10 (1) HMRC Commissioners must make regulations about—

(a) the repayment of import duty, and

(b) the repayment of interest paid in respect of import duty,

5in specified cases if a claim for the purpose is made and other specified
conditions are met.

(2) Among other things, the regulations may—

(a) make provision about who is entitled to make a claim and the form
of a claim (including provision for the form to be specified in a public
10notice given by HMRC Commissioners),

(b) make provision about the date on or before which a claim must be
made,

(c) make provision as to the evidence which is to be required, or is to be
sufficient, for the purpose of showing that any of the specified
15conditions are met,

(d) specify how a repayment may be made,

(e) require a repayment to be made only if the goods are presented to an
HMRC officer, or a Customs declaration is made, on or before a
specified date,

(f) 20specify cases in which simple interest is to be payable in respect of
the repayment of import duty (but not in respect of the repayment of
interest paid in respect of import duty), and

(g) provide for the recovery of amounts wrongly paid to a person under
the regulations (including provision for the payment of interest on
25amounts recovered) but only if, at the time at which the person is
notified of the requirement to repay, the original liability to pay
import duty could have been enforced.

(3) The provision that may be made as a result of sub-paragraph (2)(f) or (g)
includes provision—

(a) 30for interest to be payable in respect of a period beginning with a
specified date,

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

(c) about the rate of interest (which may be by reference to a rate payable
by the Bank of England, or by any other person, in respect of any
35amount).

Remission of import duty

11 HMRC Commissioners may make regulations about the remission of import
duty.

Recovery of import duty

12 (1) 40Any amount due by way of import duty is recoverable as a debt due to the
Crown.

(2) If—

(a) goods in respect of which a liability to import duty is incurred are
condemned as forfeited, and

(b) 45the goods are not subsequently restored under section 152(b) of
CEMA 1979 or sold by HMRC Commissioners,

Taxation (Cross-border Trade) BillPage 101

the amount due by way of import duty ceases to be recoverable as a debt due
to the Crown.

(3) If the goods are sold by HMRC Commissioners, the purchaser is liable to pay
the debt due to the Crown (in addition to anyone else who is liable apart
5from this sub-paragraph).

(4) This paragraph does not restrict any other way in which import duty may be
recovered, whether as a result of CEMA 1979 or any other enactment.

Section 29

SCHEDULE 7 Import duty: consequential amendments

10Part 1 Replacement of EU customs duties

1 (1) Any direct EU legislation, so far as imposing or otherwise applying in
relation to any EU customs duty, that forms part of the law of the United
Kingdom as a result of section 3 of the European Union (Withdrawal) Act
152018 (incorporation of direct EU legislation) ceases to have effect.

(2) Nothing in—

(a) any direct EU legislation, or

(b) section 4(1) of the European Union (Withdrawal) Act 2018 (saving
for EU rights, powers, liabilities, obligations, restrictions, remedies
20and procedures),

is to have effect in relation to import duty.

(3) Part

1

of this Act—

(a) 25contains provisions replacing EU customs duties,

(b) is not retained EU law, and

(c) so far as it contains powers to make or give regulations or public
notices, enables provision to be made of a kind corresponding to that
which could previously have been made by the legislation ceasing to
30have effect as a result of sub-paragraph (1).

(4) In this paragraph—

(a) any reference to EU customs duty includes any EU trade duty,

(b) the reference to EU trade duty is to anti-dumping duty,
countervailing duty, safeguard duty and any duty imposed in
35consequence of an international dispute, and

(c) the reference to Part 1 of this Act does not include section 29 or this
Schedule.

2 Provision relevant to the law relating to duties of customs and other customs
matters is made by the European Union (Withdrawal) Act 2018: see, for
40example, section 2 of that Act (which, among other things, provides for
CEMA 1979 to continue to have effect in the law of the United Kingdom).

Taxation (Cross-border Trade) BillPage 102

Part 2 Amendments of CEMA 1979

3 CEMA 1979 is amended as follows.

4 (1) Section 1 (interpretation) is amended as follows.

(2) 5In subsection (1)—

(a) omit the definition of “coasting ship”,

(b) omit the definition of “Community transit goods”,

(c) after the definition of “customs and excise station” insert—

  • ““customs formalities”, in relation to any goods, means
    10the requirements made by or under this Act, or by or
    under Part 1 of the Taxation (Cross-border Trade) Act
    2018, that apply in relation to the importation or
    exportation of the goods;

  • “customs warehouse” means premises approved under
    15regulations under Schedule 2 to the Taxation (Cross-
    border Trade) Act 2018 for the purposes of a storage
    procedure;”,

(d) in the definition of “excise warehouse”, omit “(whether or not it is
also approved under subsection (2))”,

(e) 20in the definition of “importer”, for “they are delivered out of charge”
substitute “all customs formalities have been complied with in
respect of the goods”,

(f) after the definition of “Queen’s warehouse” insert—

  • ““railway customs area” has the meaning given by
    25section 26(1ZA)(c);”,

(g) in the definition of “stores”, for “ship or aircraft” substitute “ship,
aircraft or railway vehicle”,

(h) after the definition of “stores” insert—

  • ““temporary storage facility” has the meaning given by
    30section 25A;”,

(i) in the definition of “transit goods”, for the words from “except in the
expression” to the end substitute “means chargeable goods declared
for a transit procedure;”,

(j) omit the definition of “transit or transhipment”,

(k) 35omit the definition of “transit shed”,

(l) for the definition of “vehicle” substitute—

  • ““vehicle” includes—

    (a)

    a ship,

    (b)

    an aircraft, and

    (c)

    40a railway vehicle;

    and any reference to goods being in or on board a
    vehicle include their being conveyed by the vehicle
    (for example, by being on or otherwise attached to
    it);”,

(m) 45after that definition insert—

  • ““vehicle operator” means—

    (a)

    in the case a ship, the master of the ship,

    Taxation (Cross-border Trade) BillPage 103

    (b)

    in the case of an aircraft, the commander of the
    aircraft,

    (c)

    in the case of a railway vehicle, the person
    designated as train manager by the person
    5operating the international service on which
    the railway vehicle is engaged, and

    (d)

    in the case of any other vehicle, the person in
    charge of the vehicle;”,

(n) omit the definition of “victualling warehouse”, and

(o) 10in the definition of “warehouse”—

(i) omit “or (2) or subsections (1) and (2)”, and

(ii) omit “subsection (4) of that section and”.

(3) After subsection (3) insert—

(3A) Any expression used in this Act or in any instrument made under
15this Act to which a meaning is given by Part 1 of the Taxation (Cross-
border Trade) Act 2018 has, except where the context otherwise
requires, the same meaning in this Act or any such instrument as in
that Part; and for ease of reference the following is a list of the
expressions concerned—

  • 20“the applicable export provisions”

  • “authorised use procedure”

  • “chargeable goods”

  • “Customs declaration” (including any expression relating to a
    Customs declaration such as the documents accompanying it
    25or its acceptance)

  • “Customs procedure” (including expressions relating to a
    Customs procedure such as goods being released to or
    discharged from the procedure)

  • “inward processing procedure”

  • 30“storage procedure”

  • “territory outside the United Kingdom”

  • “temporary admission procedure”

  • “transit procedure”.”

(4) Omit subsection (7).

5 (1) 35Section 2 (application to hovercraft) is amended as follows.

(2) In subsection (1)—

(a) after “ships or vessels” insert “(including references, without more,
to vehicles)”, and

(b) for “transit shed” substitute “temporary storage facility”.

(3) 40In subsection (3), omit ““transhipment”,”.

6 (1) Section 5 (time of importation, exportation, etc) is amended as follows.

(2) In subsection (2)—

(a) in the opening words, for “subsections (3)” substitute “subsections
(2A)”, and

(b) 45in paragraph (c), for “are brought across the boundary into Northern
Ireland” substitute “enter the United Kingdom”.

Taxation (Cross-border Trade) BillPage 104

(3) After subsection (2) insert—

(2A) If there is a relevant international arrangement with a country or
territory outside the United Kingdom, the Commissioners may by
regulations provide for the time of importation of any goods to be a
5time—

(a) which is earlier than the times set out in paragraph (a), (b) or
(c) of subsection (2), and

(b) which is specified by reference to movement in or out of an
area in the country or territory.

(2B) 10“Relevant international arrangement” means an arrangement
between Her Majesty’s government in the United Kingdom and the
government of the country or territory which includes provision in
relation to the time at which goods are to be regarded as imported
into the United Kingdom.”

(4) 15Omit subsection (3).

(5) In subsection (4), after “subsections (5)” insert “, (5A)”.

(6) After subsection (5) insert—

(5A) If there is a relevant international arrangement with a country or
territory outside the United Kingdom, the Commissioners may by
20regulations provide for the time of exportation of any goods to be a
time—

(a) which is earlier than the times set out in paragraph (a) or (b)
of subsection (4), and

(b) which is specified by reference to movement in or out of an
25area in the country or territory.

(5B) “Relevant international arrangement” means an arrangement
between Her Majesty’s government in the United Kingdom and the
government of the country or territory which includes provision in
relation to the time at which goods are to be regarded as exported
30from the United Kingdom.”

(7) In subsection (6), for “or brought across the boundary into Northern Ireland”
substitute “or otherwise when they enter the United Kingdom”.

7 Omit section 9 (general duties of Commissioners in relation to customs
matters concerning the European Union).

8 (1) 35Section 10 (disclosure by Commissioners of certain information as to
imported goods) is amended as follows.

(2) Before subsection (1) insert—

(A1) This section does not apply to information the disclosure of which is
governed by section 25 of the Taxation (Cross-border Trade) Act
402018.”

(3) In subsection (2), for “making entry of any goods on their importation,”
substitute “notifying the importation of any goods, making a declaration in
respect of the temporary storage of goods, or making a Customs declaration
in respect of any goods,”.

9 (1) 45Section 20 (approval of wharves) is amended as follows.

Taxation (Cross-border Trade) BillPage 105

(2) In subsection (1), omit “and subject to such conditions and restrictions”.

(3) After subsection (1) insert—

(1A) In any case where they consider it would facilitate the
administration, collection or enforcement of any duty of customs, the
5Commissioners may by regulations—

(a) specify conditions which must be met before an approval is
granted, or

(b) specify other conditions which they may, in any particular
case, require to be met before an approval is granted.

(1B) 10In any other case, an approval has effect subject to such conditions
and restrictions as the Commissioners think fit.”

(4) Omit subsection (3).

10 (1) Section 20A (approved wharves) is amended as follows.

(2) Omit subsection (1)(b) (together with the “or” before it).

(3) 15After subsection (1) insert—

(1A) Any person contravening or failing to comply with any condition
imposed under regulations under section 20(1A) attaching to an
approval by virtue of which a place is an approved wharf is liable on
summary conviction to—

(a) 20a penalty not exceeding £20,000, or

(b) if the contravention or failure to comply is not remedied
before such date as is specified in a notice or further notice
given to the person by an officer of Revenue and Customs, a
penalty not exceeding the sum of £20,000 and the enhanced
25amount.

(1B) For the purposes of subsection (1A)(b)—

(a) “the enhanced amount” means the sum produced by
multiplying £20,000 by the number of notices in respect of
which the contravention or failure to comply has not been
30remedied by the date specified in the notice,

(b) the date specified in a notice must be one that falls after the
end of the period of 14 days beginning with the day on which
the notice is given, and

(c) if a notice has already been given, a further notice may not be
35given on or before the date specified in any earlier notice.”

(4) In subsection (2), after “approved wharf” insert “(other than a condition
imposed under regulations under section 20(1A))”.

11 (1) Section 21 (control of movement of aircraft, etc into and out of the United
Kingdom) is amended as follows.

(2) 40Omit subsection (1A).

(3) In subsection (2), for the words from “no person” to “so importing”
substitute “no person importing or concerned in importing”.

(4) Omit subsection (4A).

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12 (1) Section 22 (approval of examination stations at customs and excise airports)
is amended as follows.

(2) In subsection (1), omit “and subject to such conditions and restrictions”.

(3) After subsection (1) insert—

(1A) 5In any case where they consider it would facilitate the
administration, collection or enforcement of any duty of customs, the
Commissioners may by regulations—

(a) specify conditions which must be met before an approval is
granted, or

(b) 10specify other conditions which they may, in any particular
case, require to be met before an approval is granted.

(1B) In any other case, an approval has effect subject to such conditions
and restrictions as the Commissioners think fit.”

(4) Omit subsection (3).

13 (1) 15Section 22A (examination stations) is amended as follows.

(2) Omit subsection (1)(b) (together with the “or” before it).

(3) After subsection (1) insert—

(1A) Any person contravening or failing to comply with any condition
imposed under regulations under section 22(1A) attaching to an
20approval by virtue of which a part of, or a place at, a customs and
excise airport is an examination station is liable on summary
conviction to—

(a) a penalty not exceeding £20,000, or

(b) if the contravention or failure to comply is not remedied
25before such date as is specified in a notice or further notice
given to the person by an officer of Revenue and Customs, a
penalty not exceeding the sum of £20,000 and the enhanced
amount.

(1B) For the purposes of subsection (1A)(b)—

(a) 30“the enhanced amount” means the sum produced by
multiplying £20,000 by the number of notices in respect of
which the contravention or failure to comply has not been
remedied by the date specified in the notice,

(b) the date specified in a notice must be one that falls after the
35end of the period of 14 days beginning with the day on which
the notice is given, and

(c) if a notice has already been given, a further notice may not be
given on or before the date specified in any earlier notice.”

(4) In subsection (2), after “examination station” insert “(other than a condition
40imposed under regulations under section 22(1A))”.

14 In section 23 (control of movement of hovercraft), in subsection (2), for
“transit shed” substitute “temporary storage facility”.

15 In section 24 (control of movement of goods by pipe-line), in subsection
(2)(a), for “have not been cleared out of charge” substitute “are subject to the

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control of any officer of Revenue and Customs as a result of Part 1 of the
Taxation (Cross-border Trade) Act 2018”.

16 (1) Section 25 (approval of transit sheds) is amended as follows.

(2) In subsection (1)—

(a) 5omit “and subject to such conditions and restrictions”, and

(b) for the words from “not yet cleared out of charge” to the end,
substitute “subject to the control of any officer of Revenue and
Customs as a result of Part 1 of the Taxation (Cross-border Trade)
Act 2018.”

(3) 10After subsection (1) insert—

(1A) In any case where they consider it would facilitate the
administration, collection or enforcement of any duty of customs, the
Commissioners may by regulations—

(a) specify conditions which must be met before an approval is
15granted, or

(b) specify other conditions which they may, in any particular
case, require to be met before an approval is granted.

(1B) In any other case, an approval has effect subject to such conditions
and restrictions as the Commissioners think fit.”

(4) 20Omit subsection (3).

(5) In subsection (4)—

(a) for “entry” substitute “needing to comply with all customs
formalities in relation to the goods”, and

(b) for “transit sheds”, in each place, substitute “temporary storage
25facilities”.

(6) In the heading, for “transit sheds” substitute “temporary storage facilities”.

17 (1) Section 25A (transit sheds) is amended as follows.

(2) In subsection (1)—

(a) in the opening words, for “transit shed” substitute “temporary
30storage facility”, and

(b) omit paragraph (b) (together with the “or” before it).

(3) After subsection (1) insert—

(1A) Any person contravening or failing to comply with any condition
imposed under regulations under section 25(1A) attaching to an
35approval by virtue of which a place is a temporary storage facility is
liable on summary conviction to—

(a) a penalty not exceeding £20,000, or

(b) if the contravention or failure to comply is not remedied
before such date as is specified in a notice or further notice
40given to the person by an officer of Revenue and Customs, a
penalty not exceeding the sum of £20,000 and the enhanced
amount.

(1B) For the purposes of subsection (1A)(b)—

(a) “the enhanced amount” means the sum produced by
45multiplying £20,000 by the number of notices in respect of

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which the contravention or failure to comply has not been
remedied by the date specified in the notice,

(b) the date specified in a notice must be one that falls after the
end of the period of 14 days beginning with the day on which
5the notice is given, and

(c) if a notice has already been given, a further notice may not be
given on or before the date specified in any earlier notice.”

(4) In subsection (2), for “transit shed” substitute “temporary storage facility
(other than a condition imposed under regulations under section 25(1A))”.

(5) 10In subsection (3), for “transit shed”, in both places, substitute “temporary
storage facility”.

(6) For the heading substitute “Temporary storage facilities”.

18 (1) Section 26 (power to regulate movements of goods into and out of Northern
Ireland by land) is amended as follows.

(2) 15In subsection (1), omit the words after paragraph (b).

(3) After subsection (1) insert—

(1ZA) The Commissioners may, for the purpose of safeguarding the
revenue, by regulations—

(a) apply any provision made by or under this Act so that it
20applies in relation to any road or railway vehicle (with or
without modifications),

(b) provide for any provision made by or under this Act not to
apply in relation to any road or railway vehicle, and

(c) make provision for the designation of any area as a railway
25customs area for the purposes of this Act (referred to in this
Act as a “railway customs area”).

(1ZB) An area may be designated as a railway customs area if it is—

(a) a place at which goods are loaded onto or unloaded from, or
passengers board or disembark from, a railway vehicle
30before it departs or enters the United Kingdom, or

(b) an area adjoining such a place.

(1ZC) Regulations under this section may make different provision in
relation to different classes or descriptions of goods and, in
particular, in relation to different classes or descriptions of vehicles.”

(4) 35In subsection (1A), for “subsection (1) above” substitute “this section”.

(5) In subsection (2), for “subsection (1) above” substitute “this section”.

(6) In the heading, for “Northern Ireland” substitute “United Kingdom”.

19 (1) Section 27 (officers’ powers of boarding) is amended as follows.

(2) In subsection (1)—

(a) 40in the opening words, for “a vehicle” substitute “any other vehicle”,

(b) after paragraph (b) insert—

(ba) within a railway customs area,”,

(c) in paragraph (e), for “transit shed,” substitute “temporary storage
facility,”, and

Taxation (Cross-border Trade) BillPage 109

(d) in the words after paragraph (f), for “the ship, aircraft or vehicle”
substitute “the vehicle”.

(3) Omit subsection (1A).

20 (1) Section 28 (officers’ powers of access, etc) is amended as follows.

(2) 5In subsection (1)—

(a) in the opening words, for “of any vehicle” substitute “of any other
vehicle”, and

(b) in paragraphs (a) and (b), for “ship, aircraft or vehicle” substitute
“vehicle”.

(3) 10In subsection (2), for “ship, aircraft or vehicle” substitute “vehicle”.

21 (1) Section 29 (officers’ powers of detention of ships, etc) is amended as follows.

(2) In subsection (1), for “ship, aircraft or vehicle”, in each place, substitute
“vehicle”.

(3) In subsection (2)(a), after “in the case of a ship or vehicle” insert “other than
15an aircraft”.

22 (1) Section 30 (control of movement of uncleared goods within or between port
or airport and other places) is amended as follows.

(2) In subsection (1), for the words from “moved within” to the end substitute
“moved—

(a) 20within the limits of any port, railway customs area or
customs and excise airport, or

(b) between any port, railway customs area or customs and
excise airport and any other place.”

(3) In subsection (2), for “have not been cleared out of charge” substitute “are
25subject to the control of any officer of Revenue and Customs as a result of
Part 1 of the Taxation (Cross-border Trade) Act 2018”.

(4) In subsection (3)(b), for “ships, aircraft or vehicles” substitute “vehicles”.

23 In section 31 (control of movement of goods to and from inland clearance
depot, etc), in subsection (1)—

(a) 30in paragraphs (a) and (aa)(i), for “the clearance out of charge of”
substitute “the discharge of a Customs procedure in respect of”, and

(b) in paragraph (b), omit “, or a place designated by the proper officer
under section 53(4) or 58(3) below,”.

24 (1) Section 33 (power to inspect aircraft, aerodromes, records, etc) is amended
35as follows.

(2) In subsection (1)—

(a) in the opening words—

(i) for “commander of an aircraft” substitute “vehicle operator of
a vehicle which is an aircraft or railway vehicle”, and

(ii) 40for “to board the aircraft” substitute “to board the vehicle”,
and

(b) in paragraphs (a) and (b), for “the aircraft” substitute “the vehicle”.

(3) In subsection (2)—