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

Taxation (Cross-border Trade) BillPage 10

15 International disputes etc

(1) If—

(a) a dispute or other issue has arisen between Her Majesty’s government
in the United Kingdom and the government of a country or territory,
5and

(b) Her Majesty’s government in the United Kingdom is authorised under
international law to deal with the issue by varying the amount of
import duty in the case of goods, or a description of goods, originating
from the country or territory,

10the Secretary of State may make regulations varying the amount of import
duty applicable to the goods or the description of goods.

(2) In exercising the power to make the regulations in the case of a dispute
affecting any goods, the Secretary of State must secure that the amount of
import duty payable in that case takes account of any additional amount of
15import duty which—

(a) is payable under section 13 as a result of the goods being subsidised, or

(b) would have been so payable had an undertaking not been accepted in
respect of the goods.

Amount of import duty: supplementary

16 20Value of chargeable goods

(1) This section makes provision for determining the value of chargeable goods for
the purposes of this Part.

(2) The general rule is that the value of the goods is the transaction value of the
goods when sold for export to the United Kingdom.

(3) 25For this purpose “the transaction value” means the total amount of the
consideration—

(a) payable for the goods, or

(b) payable in connection with the importation of the goods into the United
Kingdom,

30subject to the inclusion or exclusion of matters specified in regulations made
by the Treasury.

(4) The regulations may make provision for treating a matter to be of a specified
amount or value.

(5) Regulations made by the Treasury may make provision for the value of goods
35for the purposes of this Part to be a value other than the transaction value.

(6) The following are examples of the kind of provision that may be made by the
regulations—

(a) provision dealing with transactions between persons who are related
to, or connected with, each other in a specified way, and

(b) 40provision dealing with cases where a transaction value cannot, or
cannot readily, be determined.

Taxation (Cross-border Trade) BillPage 11

17 Place of origin of chargeable goods

(1) This section makes provision for determining the place of origin of chargeable
goods for the purposes of this Part.

(2) Goods are to be regarded as originating from a country or territory if they are
5wholly obtained in the country or territory.

(3) If goods are obtained in two or more countries or territories, the goods are to
be regarded as originating from the last country or territory in which
substantial processing of them has taken place that is economically justified.

(4) Processing of any goods is to be regarded as substantial only if—

(a) 10it results in the manufacture of a new product or represents an
important stage of manufacture, and

(b) it takes place in an undertaking equipped for the purpose.

(5) It is for the person making a Customs declaration to show that goods originate
from a particular country or territory.

(6) 15The Treasury may by regulations make provision for the purposes of this
section, including (for example) provision—

(a) for determining what constitutes, or does not constitute, processing
that is economically justified,

(b) for determining what constitutes, or does not constitute, an important
20stage of manufacture,

(c) as to cases in which goods are, or are not, to be regarded as originating
from a country or territory, and

(d) as to the evidence which is to be required, or is to be sufficient, for the
purpose of showing that goods originate from a particular country or
25territory.

(7) In relation to any case where the applicable rate of import duty is determined
under section 9 or 10 (preferences), the provision that may be made by
regulations under subsection (6) includes—

(a) provision for the place of origin of the goods to be determined in
30accordance with the regulations,

(b) provision for regarding goods exported by or on behalf of persons
approved in accordance with the regulations as originating from a
country or territory or for regarding only goods exported by or on
behalf of approved persons as originating from a country or territory,

(c) 35provision for different categories of approved persons,

(d) provision requiring the Treasury to publish a list of persons who are for
the time being approved persons and information about the category of
approval, and

(e) other provision about approved persons.

(8) 40The power to make regulations under this section is exercisable only on the
recommendation of the Secretary of State.

18 Currency

(1) The value of chargeable goods for the purposes of this Part must be calculated
and expressed in sterling.

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(2) If an amount that is relevant for the purpose of calculating the value of goods
for the purposes of this Part is expressed in a currency other than sterling, the
amount must be converted into its sterling equivalent.

(3) The conversion must be made in accordance with provision contained in a
5public notice given by HMRC Commissioners.

(4) The public notice may make provision—

(a) specifying the exchange rate that must be used for the purposes of this
section,

(b) for the conversion to be made by reference to an exchange rate (or rates)
10applicable at any time (including a time earlier than that at which an
importation took place) or by reference to the average exchange rate for
a specified period,

(c) for the exchange rate determined in accordance with the notice to apply
to transactions or other events taking place in a specified period,

(d) 15for adjusting the applicable exchange rate if the value of sterling against
the currency concerned has increased or decreased by more than a
specified percentage, and

(e) for any conversion to be rounded up or down.

Reliefs

19 20Reliefs

(1) The Treasury may by regulations make provision for full or partial relief from
a liability to import duty.

(2) The regulations may provide for the relief to be given by reference to any
factor, for example—

(a) 25the nature or origin of goods or anything else by reference to which
goods are classified in the customs tariff,

(b) anything in the customs tariff by reference to which the amount of
import duty applicable to goods is determined,

(c) the purposes for which goods are imported,

(d) 30the person by whom, or for whose benefit, goods are imported, and

(e) the circumstances in which goods are imported.

(3) The regulations may provide for a relief to be conditional on (among other
things) the export of goods in accordance with the applicable export
provisions.

(4) 35In the case of goods that are declared for an authorised use procedure or
temporary admission procedure, the Treasury—

(a) must exercise the power to make regulations under this section so as to
secure that the rate of import duty applicable to the goods is lower than
the applicable rate in the customs tariff in its standard form, and

(b) 40may secure that result by amending the customs tariff.

(5) If the regulations provide for partial relief in respect of goods declared for a
temporary admission procedure, the regulations must secure that—

(a) the partial relief operates by way of additional charges to import duty
by reference to any period during which the procedure has effect, and

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(b) the total of the additional charges does not exceed the amount of the
liability in the absence of the partial relief.

(6) If the regulations provide for partial relief in any other case, the regulations
may make provision corresponding to that mentioned in subsection (5)(a) and
5(b).

(7) The reference in this section to the customs tariff in its standard form is to the
tariff as it has effect without regard to any provision made under any of
sections 9 to 15 (preferential rates, quotas, tariff suspension, safeguarding, etc).

Administration etc

20 10Notification and payment of import duty, etc

Schedule 6 makes provision for—

(a) the notification of any liability to pay import duty,

(b) the payment of import duty,

(c) the giving of guarantees in respect of any liability to pay import duty,

(d) 15the repayment of import duty,

(e) the remission of import duty, and

(f) the recovery of import duty.

21 Customs agents

(1) A person (“the principal”) may appoint any other person (a “Customs agent”)
20to act on the principal’s behalf for the purposes of this Part, and—

(a) the agent may make Customs declarations in the name of the principal
(and in that case the agent acts as a “direct agent”), or

(b) the agent may make Customs declarations in the agent’s own name
(and in that case the agent acts as an “indirect agent”).

(2) 25The appointment of a person as a Customs agent, and the withdrawal of an
appointment of a person as a Customs agent, must be disclosed to HMRC in
accordance with regulations made by HMRC Commissioners.

(3) The effect of an appointment of a person as a Customs agent is that anything
done under, or otherwise for the purposes of, this Part by, or in relation to, the
30agent is regarded as done under, or otherwise for the purposes of, this Part by,
or in relation to, the principal (and not by the agent).

(4) There is an exception to this rule if a Customs agent acts as an indirect agent
(and see also section 37(8)(b)).

(5) In that case, the indirect agent is liable to import duty in accordance with
35section 6(1) (and the principal is also liable to import duty in accordance with
section 6(3)(a)).

(6) If a Customs agent acts as a direct agent, the agent is also liable to import duty
if—

(a) the agent acts at time when the appointment has not been disclosed to
40HMRC as mentioned in subsection (2),

(b) the agent acts at a time when the appointment of the person as a
Customs agent has been withdrawn,

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(c) the agent otherwise purports to act on behalf of the principal when the
agent has no authority to do so, or

(d) a liability to import duty is incurred by reference to the importation of
goods declared for a Customs declaration and the declaration was not
5made in accordance with regulations under paragraph 9 of Schedule 1
(simplified Customs declarations).

(7) HMRC Commissioners may by regulations make further provision about
Customs agents for the purposes of import duty.

(8) Each of the following is an example of the kind of provision that may be made
10by the regulations—

(a) provision requiring persons to be eligible for appointment as Customs
agents only if an HMRC officer has approved the appointment, and

(b) provision specifying the criteria for approving the appointment
(including provision for the criteria to be specified in a public notice
15given by HMRC Commissioners).

22 Authorised economic operators

(1) HMRC Commissioners may by regulations make provision—

(a) disapplying or simplifying specified requirements made by or under
this Part in relation to things required or authorised to be done by
20authorised economic operators, or

(b) requiring HMRC to have regard to the status of a person as an
authorised economic operator when considering whether or not, or
how, to exercise any power or other function for the purposes of this
Part.

(2) 25For this purpose “authorised economic operators” means persons authorised
in accordance with provision made by or under the regulations.

(3) Regulations under this section may (for example)—

(a) specify the criteria to be applied in determining whether or not any
person should be an authorised economic operator,

(b) 30specify those criteria by reference to professional standards of
competence (as set by any specified person) or by reference to anything
else (including the judgment of any person as to suitability),

(c) make provision for a person’s status as an authorised economic
operator to be subject to compliance with conditions specified in the
35regulations or in the authorisation, and

(d) establish different classes of authorised economic operator.

23 Approvals and authorisations granted under regulations

(1) This section applies in relation to approvals granted to any person under
regulations made under this Part (whether in respect of premises or anything
40else) unless the regulations in question make alternative provision.

(2) In this section references to an approval include an authorisation.

(3) The regulations under which an approval is granted may—

(a) require an application for approval to be made in a specified form and
in a specified manner and to contain specified information,

(b) 45specify cases in which an application for approval may not be made,

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(c) require HMRC to consider, within a specified period, whether or not an
application, or purported application, for approval is, as a result of
provision made by paragraph (a) or (b), one that falls to be determined,

(d) confer on the applicant a right of appeal to an appeal tribunal in a case
5where HMRC have failed to comply with paragraph (c),

(e) require HMRC to notify a person making a purported application for
approval that, as a result of provision made by paragraph (a) or (b), the
purported application does not fall to be determined, and

(f) make further provision about the notification.

(4) 10The provision that may be made under subsection (3)(d) includes—

(a) provision for an appeal to be brought only if a period specified in the
regulations has ended, and

(b) provision limiting the power of an appeal tribunal to the power to
direct HMRC, in a case where it is satisfied that HMRC have acted
15unreasonably, to consider the application as mentioned in subsection
(3)(c) within such further period as is specified by the tribunal.

(5) An approval granted by HMRC is treated as if it had never been granted if—

(a) the (purported) application for approval was deficient in some respect,

(b) the applicant knew, or ought reasonably to have known, of the
20deficiency,

(c) HMRC consider that the approval would not have been granted if the
deficiency was known at the time it was granted by the person granting
it, and

(d) HMRC give a notice to the applicant under this subsection notifying the
25applicant of the effect of this subsection.

(6) Regulations made by HMRC Commissioners may make any provision that
they consider appropriate for the purposes of subsection (5), including
provision specifying cases in which the approval is to continue to be treated as
still in force.

(7) 30An approval may be amended, suspended or revoked in cases specified in the
regulations under which it was granted.

(8) The amendment, suspension or revocation of an approval takes effect from the
date specified in a notice given by HMRC to the person approved (and,
accordingly, does not affect anything already done by any person before that
35date in reliance on the approval).

(9) HMRC

(a) may not specify a date before the notice is given unless HMRC and the
person both agree that such a date may be given, and

(b) may not specify a date that falls more than one year after the date on
40which the notice is given.

(10) In this section “an appeal tribunal” has the same meaning as in Chapter 2 of
Part 1 of the Finance Act 1994 (see section 7).

24 Rulings as to application of customs tariff or place of origin

(1) HMRC Commissioners must by public notice make provision establishing a
45system under which persons apply for rulings given by HMRC officers for the
purpose of—

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(a) determining any issue as to the code in the customs tariff applicable to
any goods, or

(b) determining the place of origin of any goods for the purposes of this
Part.

(2) 5Each of the following is an example of the kind of provision that may be made
by the notice—

(a) provision specifying cases in which rulings need not be given,

(b) provision about the making of the applications (including their form,
the information to be contained in them and any documents to
10accompany them),

(c) provision requiring the applications to be determined within a
specified period,

(d) provision about the period for which, and other conditions subject to
which, the rulings are to have effect,

(e) 15provision about the form in which the rulings are to be given,

(f) provision for the withdrawal or amendment of rulings,

(g) provision determining the extent to which the rulings may be relied on
by applicants, and

(h) provision requiring any person to whom a ruling has been given to
20disclose that fact to HMRC.

(3) The system established by the notice must secure that an application may be
made for a ruling even if an HMRC officer considers that the ruling is not, or
may not be, required to resolve a doubt as to the issue being determined.

Supplementary

25 25Disclosure of information

(1) HMRC (or anyone acting on their behalf) may disclose information relating to
import duty for customs duty purposes.

(2) In this section “customs duty purposes” means purposes in connection with, or
otherwise incidental to, the imposition, enforcement or other regulation of
30import duty.

(3) A person who receives information as a result of this section may not further
disclose the information except with the consent of the HMRC Commissioners
(which may be general or specific).

(4) A person who receives information as a result of this section may use the
35information only for customs duty purposes.

(5) If a person discloses information in contravention of subsection (3) which
relates to a person whose identity—

(a) is specified in the disclosure, or

(b) can be deduced from it,

40section 19 of the Commissioners for Revenue and Customs Act 2005 (offence of
wrongful disclosure) applies in relation to that disclosure as it applies in
relation to a disclosure in contravention of section 20(9) of that Act.

(6) This section does not limit the circumstances in which information may be
disclosed under section 18(2) of the Commissioners for Revenue and Customs
45Act 2005 or under any other enactment or rule of law.

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(7) Nothing in this section authorises the making of a disclosure which—

(a) contravenes the Data Protection Act 1998, or

(b) is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the
Investigatory Powers Act 2016.

26 5Co-operation with other customs services

(1) HMRC may cooperate with other customs services on matters of mutual
concern with a view to securing (by the exchange of information or
otherwise)—

(a) the administration of the import duty system,

(b) 10the prevention or detection of evasion or other fraud relating to import
duty, and

(c) the prevention, reduction or elimination of avoidance of a liability to
import duty.

(2) Section 25(3) to (7) apply in relation to information disclosed as a result of this
15section.

27 Fees for exercise of functions in connection with import duty

(1) The Treasury may by regulations authorise the charging of fees in respect of
the exercise of any specified function of HMRC, or of an HMRC officer, for the
purposes of, or otherwise in connection with, import duty.

(2) 20The power may be exercised by the Treasury only if they consider that—

(a) its exercise is consistent with arrangements between Her Majesty’s
government in the United Kingdom and any other government or any
international organisation or authority, and

(b) the circumstances in which the specified function is, or is likely to be,
25exercised are such that it is fair and reasonable for the charge to be
made.

28 Requirement to have regard to international obligations

(1) In exercising any function under any provision made by or under this Part—

(a) the Treasury,

(b) 30the Secretary of State,

(c) HMRC,

(d) the TRA, and

(e) any other public body,

must have regard to international arrangements to which Her Majesty’s
35government in the United Kingdom is a party that are relevant to the exercise
of the function.

(2) This section is not to be read as affecting the circumstances in which any
obligation to have regard to such matters would otherwise have arisen.

29 Consequential amendments

(1) 40Schedule 7 contains amendments consequential on the provision made by this
Part.

(2) The amendments made by that Schedule include amendments dealing with—

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(a) reviews or appeals of decisions in relation to import duty (see sections
13A to 16 of, and Schedule 5 to, the Finance Act 1994), and

(b) penalties in relation to breaches of requirements in relation to import
duty (see Part 3 of the Finance Act 2003).

30 5General provision for the purposes of import duty

The Treasury may by regulations—

(a) make provision supplementing provision made in relation to import
duty by or under this Part or any other enactment, or

(b) make other provision generally for the purposes of import duty.

10UK's customs union

31 Territories forming part of a customs union with UK

(1) This section applies if arrangements are entered into between—

(a) Her Majesty’s government in the United Kingdom, and

(b) the government of a country or territory outside the United Kingdom,

15establishing a customs union between the United Kingdom and the country or
territory.

(2) Arrangements establish a “customs union” between the United Kingdom and
a country or territory if—

(a) they provide that no duty is to be chargeable by reference to
20movements of goods, or goods of a specified description, between the
United Kingdom and the country or territory, and

(b) they provide for the same, or substantially the same, rules for charging
duty on imports of goods, or goods of a specified description, from
places outside the United Kingdom or the country or territory.

(3) 25For this purpose—

  • “duty” means—

    (a)

    import duty, or

    (b)

    any duty (however described) imposed by the law of the
    country or territory that is of a similar character to import duty,
    30and

  • “specified” means specified in the arrangements.

(4) If Her Majesty by Order in Council declares that it is expedient that the
arrangements should have effect for the purposes of import duty, the
arrangements have effect for those purposes despite any enactment.

(5) 35HMRC Commissioners may make regulations generally for carrying out any
arrangements having effect in accordance with this section.

(6) Among other things, the regulations may—

(a) modify or disapply provision made by or under this Part or any other
Act,

(b) 40treat anything done by the government of a country or territory as if
done by the appropriate authority or person in the United Kingdom,
and

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(c) apply or replicate, with or without modifications, provision relating to
duty under the law of a country or territory as that provision has effect
from time to time.

(7) Examples of the kind of provision within subsection (6)(b) are—

(a) 5provision treating an agreement entered into by a country or territory
as if it were entered into by Her Majesty’s government in the United
Kingdom, and

(b) provision treating a system for determining the amount of duty
established under the law of a country or territory as if it were the
10customs tariff mentioned in section 8.

Regulations etc

32 Regulations etc

(1) Regulations under this Part are to be made by statutory instrument.

(2) A statutory instrument containing—

(a) 15the first regulations under section 8, or

(b) any other regulations under that section the effect of which is an
increase in the amount of import duty payable under the customs tariff
in a standard case (within the meaning of that section),

must be laid before the House of Commons, and, unless approved by that
20House before the end of the period of 28 days beginning with the date on which
the instrument is made, ceases to have effect at the end of that period.

(3) The fact that a statutory instrument ceases to have effect as a result of
subsection (2) does not affect—

(a) anything previously done under the instrument, or

(b) 25the making of a new statutory instrument.

(4) In calculating the period for the purposes of subsection (2), no account is to be
taken of any time—

(a) during which Parliament is dissolved or prorogued, or

(b) during which the House of Commons is adjourned for more than 4
30days.

(5) A statutory instrument containing regulations made under this Part other than
regulations to which subsection (2) applies is subject to annulment in
pursuance of a resolution of the House of Commons.

(6) Any power to make regulations under this Part may be exercised—

(a) 35either in relation to all cases to which the power extends, or in relation
to those cases subject to specified exceptions, or in relation to any
specified case or description of case, or

(b) so as to make different provision for different purposes or areas.

(7) Any power to make regulations under this Part includes—

(a) 40power conferring a discretion on any specified person to do anything
under, or for the purposes of, the regulations,

(b) power to make provision by reference to things specified in a notice
published in accordance with the regulations,