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

Taxation (Cross-border Trade) BillPage 40

Eligibility of persons to make Customs declarations

2 (1) A person may make a Customs declaration in respect of any chargeable
goods if—

(a) the person is able to present the goods to Customs on import, or

(b) 5the person is able to secure that the goods are presented to Customs
on import.

(2) HMRC Commissioners may by regulations provide that, in addition to
meeting the requirements of sub-paragraph (1), persons may make Customs
declarations only if—

(a) 10they are established in the United Kingdom or a specified place
outside the United Kingdom,

(b) they otherwise have a specified connection to the United Kingdom or
to a specified place outside the United Kingdom, or

(c) they meet any other specified conditions.

15Time at which Customs declarations required or authorised to be made

3 (1) HMRC Commissioners may by regulations make provision requiring, in
specified cases, a Customs declaration to be made in respect of any goods
before they are imported into the United Kingdom.

(2) A Customs declaration may be made in other cases in respect of any goods
20before they are imported into the United Kingdom, but the declaration is
treated as withdrawn if the goods are not presented to Customs on import
within the permitted period.

(3) For this purpose “the permitted period” means—

(a) the period of 30 days beginning with the day on which the
25declaration is made, or

(b) such longer or shorter period as may be specified in a public notice
given by HMRC Commissioners.

(4) If—

(a) a Customs declaration is required to be made in respect of any goods
30before they are imported into the United Kingdom, and

(b) the requirement to make the declaration still falls to be complied
with when the goods are imported,

the goods are liable to forfeiture at the time of importation.

(5) HMRC Commissioners may make regulations for the purposes of this
35paragraph.

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

(a) provision requiring a person in possession or control of any goods to
have evidence of the making of a Customs declaration and to
40produce (on request) the evidence to an HMRC officer,

(b) provision for the evidence mentioned in paragraph (a) to be of a type,
and in a form, specified in the regulations or in a public notice given
by HMRC Commissioners,

(c) provision requiring, after a Customs declaration is made in respect
45of any goods, the giving of a notification in respect of the goods to
HMRC in accordance with the regulations, and

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(d) provision treating, in specified cases, a requirement to make a
Customs declaration before the time at which any goods are
imported as if it had been met if a Customs declaration is made at a
later time in accordance with the regulations.

5Form of Customs declarations and how they are made

4 The general rule is that a Customs declaration—

(a) must be made in an electronic form specified in a public notice given
by HMRC Commissioners, and

(b) must be submitted or otherwise made available to HMRC
10electronically in accordance with provision made by a public notice
given by HMRC Commissioners.

5 (1) In cases specified in a public notice given by HMRC Commissioners, a
Customs declaration may be made in writing (otherwise than in electronic
form) in a form specified in the notice.

(2) 15In those cases, the declaration must be submitted or otherwise made
available to HMRC in accordance with provision made by a public notice
given by HMRC Commissioners.

6 (1) In cases specified in a public notice given by HMRC Commissioners, a
Customs declaration—

(a) 20may be made orally, or

(b) may be made by conduct.

(2) HMRC Commissioners may by regulations make provision for altering or
supplementing the operation of the customs duty provisions in any case
where a Customs declaration is made orally or by conduct.

(3) 25Among other things, the regulations may include provision—

(a) disapplying any requirement under the customs duty provisions,

(b) treating anything done, or omitted to be done, as meeting any
condition imposed under the customs duty provisions,

(c) restricting or excluding the exercise of a power conferred under the
30customs duty provisions, or

(d) requiring any person to provide documents or information to
HMRC.

(4) In this paragraph “the customs duty provisions” means any provision made
by or under—

(a) 35this Part, or

(b) CEMA 1979, or any other enactment, so for as relating to any duty of
customs.

Contents of Customs declarations

7 (1) A Customs declaration in respect of any goods—

(a) 40must, in addition to specifying the Customs procedure for which the
goods are declared, contain information of a description specified in
a public notice given by HMRC Commissioners,

(b) must be accompanied by such documents of a description specified
in a public notice given by HMRC Commissioners, and

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(c) must include a declaration by the person making it that the
declaration is, to the best of the person’s knowledge, correct and
complete.

(2) In cases specified in a public notice given by HMRC Commissioners, the
5requirement under sub-paragraph (1)(b) may be met by the person who has
made the declaration 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
10the notice (whether electronically or otherwise).

(3) In cases specified in a public notice given by HMRC Commissioners, the
documents required to accompany a Customs declaration may be required
to be submitted or otherwise made available to HMRC before the making of
the declaration.

(4) 15References in this Schedule to documents accompanying a Customs
declaration are to be read in accordance with sub-paragraphs (2) and (3).

8 A public notice given by HMRC Commissioners—

(a) may make provision, in specified cases, for a single Customs
declaration to cover a number of different goods, including goods of
20different descriptions, and

(b) may make provision, in specified cases, requiring separate Customs
declarations to be made in respect of goods of the same description.

Simplified Customs declarations etc

9 (1) HMRC Commissioners may by regulations make provision disapplying or
25simplifying the requirements made by or under this Part in relation to the
making of Customs declarations.

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

(a) provision entitling only authorised persons to make use of the
30regulations or specified provisions of the regulations,

(b) provision requiring the giving of a guarantee, in accordance with the
regulations, in respect of any liability to import duty before a
Customs declaration is made,

(c) provision for the making of a simplified Customs declaration
35(subject to any conditions that may be imposed by the regulations as
to the subsequent provision of further information or documents),

(d) provision for a single rate of import duty to apply to goods of
different descriptions comprised in a particular consignment (using
the highest rate otherwise applicable to any of the goods),

(e) 40provision for the amount of import duty in respect of goods of
different descriptions comprised in a particular consignment to be
calculated by reference to the same matter,

(f) provision for treating a Customs declaration in respect of goods as
being made if a person makes an entry in respect of the goods in a
45system for recording information where the system is approved by
HMRC and the information is made available to HMRC,

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(g) provision disapplying any requirement made by or under this Part
in cases where a Customs declaration is treated as made as a result of
paragraph (f), and

(h) provision for the making of a Customs declaration in respect of
5goods imported during a specified period (instead of separate
Customs declarations being required in respect of each importation).

(3) In sub-paragraph (2)(a) “authorised persons” means persons authorised in
accordance with provision made by or under the regulations.

Acceptance of Customs declarations

10 10As soon as practicable after receiving a Customs declaration, HMRC must
determine—

(a) whether or not the declaration has been made, and has been made
available to HMRC, in accordance with the provision made by or
under paragraphs 1 to 6, and

(b) 15whether or not the declaration is complete.

11 (1) If HMRC are satisfied that—

(a) the goods have been presented to Customs on import,

(b) a Customs declaration has been made in respect of the goods, and
has been made available to HMRC, in accordance with the provision
20made by or under paragraphs 1 to 6, and

(c) the declaration is complete,

HMRC must notify the person making the declaration that HMRC are so
satisfied.

(2) A notification under sub-paragraph (1) constitutes the acceptance of the
25declaration by HMRC for the purposes of this Part.

(3) This does not prevent the subsequent exercise of a power to verify the
declaration under paragraph 13.

(4) That paragraph also provides for another way in which a declaration is
accepted by HMRC for the purposes of this Part.

12 30For the purposes of this Schedule a Customs declaration is regarded as
complete only if—

(a) all the information required to be included in the declaration is
included (in the appropriate places in the declaration), and

(b) all the documents required to accompany the declaration do
35accompany it,

whether or not there are any inaccuracies in the information contained in the
declaration or documents.

Verification of Customs declarations

13 (1) An HMRC officer may verify a Customs declaration by taking any of the
40following steps—

(a) steps to establish the entitlement of a person to make a Customs
declaration and generally to determine whether the conditions for
making the declaration are met, and

(b) steps to establish the accuracy of a Customs declaration or any
45document required to accompany it.

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(2) An HMRC officer may take any of the steps in sub-paragraph (1) before or
after, or at the same time as, accepting the declaration.

(3) If an HMRC officer takes any of those steps before a Customs declaration is
accepted, the officer—

(a) 5may notify the person making the declaration that the declaration is
to be treated for the purposes of this Part as if it had been accepted
by HMRC (whether or not it would have been accepted under
paragraph 11(2)), and

(b) may make any amendments of the declaration that the officer
10considers are appropriate.

(4) A notification under sub-paragraph (3) constitutes the acceptance of the
declaration by HMRC for the purposes of this Part (as amended, where
relevant, by an HMRC officer).

(5) For further provision governing the steps which the officer may take, see, in
15particular, Parts 7 and 12 of CEMA 1979.

14 (1) This paragraph applies if an HMRC officer considers at any time that there
is an inaccuracy in a Customs declaration (including as a result of an
inaccuracy in a document accompanying it).

(2) The officer—

(a) 20must notify the person making the declaration of the inaccuracy, and

(b) must correct the declaration, or direct the person who has made the
declaration or any other appropriate person to make the necessary
corrections.

(3) Any liability to import duty in respect of any goods is determined on the
25basis of the information contained in the Customs declaration as corrected
(or required to be corrected) under this paragraph.

(4) A notification is not required to be given under sub-paragraph (2)(a) if an
HMRC officer considers that doing so might prejudice an investigation that
could result in legal proceedings (whether or not involving the person who
30would otherwise be notified).

Amendment or withdrawal of Customs declarations

15 (1) A person who has made a Customs declaration is entitled to amend or
withdraw it at any time before a relevant event occurs.

(2) For this purpose “a relevant event occurs” on the first occurrence of any of
35the following—

(a) an HMRC officer indicating to the person that the officer intends to
take steps to verify the declaration,

(b) an HMRC officer taking steps to verify the declaration, and

(c) HMRC accepting the declaration.

16 40Once a relevant event occurs, the person making the declaration may amend
or withdraw it only if—

(a) a notification to amend or withdraw the declaration is given to an
HMRC officer before the end of a period specified in a public notice
given by HMRC Commissioners, and

(b) 45an HMRC officer consents to the making of the amendment or the
withdrawal.

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Releasing and discharging goods to and from Customs procedures

17 (1) Once chargeable goods are declared for a Customs procedure, the goods
remain subject to the control of any HMRC officer until the procedure is
discharged.

(2) 5If goods are declared for the free-circulation procedure, the goods are
released to the procedure—

(a) when the import duty is paid, or

(b) if satisfactory payment arrangements are in place, when the
declaration is accepted by HMRC.

(3) 10For this purpose “satisfactory payment arrangements” are in place only if—

(a) an approved guarantee for the payment of import duty has effect in
relation to the goods, or

(b) HMRC are, in cases specified in a public notice given by HMRC
Commissioners, otherwise satisfied, by reference to matters
15specified in the notice, that the import duty will be paid.

(4) The goods are discharged from the free-circulation procedure when HMRC
notify the person making the declaration that the goods are discharged from
the procedure.

(5) Consequently, at that point—

(a) 20the goods cease to be chargeable goods, and

(b) the goods cease to be subject to control of an HMRC officer,

but nothing in this sub-paragraph prevents the subsequent exercise of a
power of to verify the declaration under paragraph 13.

(6) If the goods are declared for a special Customs procedure, the goods are
25released to the procedure at whichever is the later of the following times—

(a) the time at which HMRC accept the declaration, or

(b) if the procedure is one requiring the person making the declaration
to be authorised, the time determined in accordance with paragraph
1(2)(f) of Schedule 2 as the time from which the procedure may be
30used in respect of the goods.

(7) Once goods are released to a special Customs procedure—

(a) the goods are subject to the provision made by or under Schedule 2,
and

(b) the procedure continues to have effect until it is discharged in
35accordance with the provision made by or under that Schedule.

Declarations for different Customs procedures

18 (1) The fact that chargeable goods are declared for one Customs procedure does
not prevent the goods from being subsequently declared for a different
Customs procedure.

(2) 40Goods may not be released to a Customs procedure at any time if another
Customs procedure has effect in relation to the goods at that time (but this is
subject to paragraph 20(2) of Schedule 2).

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Notifications given by HMRC or HMRC officers

19 (1) Any notification given by HMRC or an HMRC officer under this Schedule
may be given in such form and manner as the person giving it considers
appropriate.

(2) 5HMRC Commissioners may by regulations make provision specifying cases
where it is to be presumed that a person has been notified under this
Schedule (including cases where the presumption may not be rebutted).

Section 3(6)

SCHEDULE 2 Special Customs procedures

10Part 1 Entitlement to declare goods for special customs procedures

1 (1) HMRC Commissioners may by regulations make provision entitling a
person to declare goods for a special Customs procedure only if—

(a) the person is authorised in accordance with provision made by or
15under the regulations, and

(b) any other specified conditions are met in relation to the making of
the declaration (for example, the giving of information or documents
to HMRC).

(2) The provision that the regulations may make in respect of authorisations
20includes (among other things)—

(a) provision for an authorisation to be granted only to persons
established (as determined in accordance with provision made by
the regulations) in the United Kingdom or in any specified place
outside the United Kingdom,

(b) 25provision for an authorisation to be granted only to persons meeting
such other conditions as to their suitability as may be specified
(which may be framed by reference to the judgment of any person),

(c) provision specifying other criteria for the granting of authorisations,

(d) provision about the period for which an authorisation is to have
30effect,

(e) provision making the grant of the authorisation subject to conditions
specified in the authorisation (which may be framed by reference to
a document published by HMRC Commissioners) or in the
regulations,

(f) 35provision for determining the time from which a special Customs
procedure may be used in respect of any goods (including provision
for the time to be determined in accordance with provision made by
the authorisation),

(g) provision for treating the making of a declaration as an application
40for authorisation,

(h) provision for treating an application for authorisation (including one
as a result of paragraph (g)) as granted in specified cases, and

(i) provision granting an authorisation (a “retrospective authorisation”)
with effect from a time before the application for it is made.

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(3) If the Treasury consider it appropriate for the regulations to contain an
economic condition applicable to a qualifying case, they may give directions
to HMRC Commissioners requiring them to make regulations containing
such a condition.

(4) 5For this purpose—

  • “an economic condition”, in relation to any goods, means a condition
    designed to secure that an authorisation is granted only if its
    granting would not adversely affect the interests of producers in the
    United Kingdom of the goods, and

  • 10“qualifying case” means a case where—

    (a)

    a person is authorised to declare goods for an inward
    processing procedure, or

    (b)

    a person is granted a retrospective authorisation.

Part 2 15Storage procedure

Meaning of goods declared for “a storage procedure”

2 (1) A declaration of goods for “a storage procedure” is a declaration that the
goods—

(a) are to be kept in premises approved by HMRC, or

(b) 20are to be kept in a free zone,

in accordance with requirements imposed on any person by or under
regulations made by HMRC Commissioners.

(2) References in this Part of this Schedule to cases where premises are
approved by HMRC include cases where the premises are owned, occupied
25or otherwise used by a person approved by HMRC.

(3) HMRC Commissioners may by regulations make provision imposing any
other requirements on any person in relation to a storage procedure in
respect of goods that are kept in—

(a) premises approved by HMRC, or

(b) 30free zones,

including provision as to what, or as to the extent to which, other activities
may, or may not, be done in the premises or free zones (or elsewhere).

(4) HMRC Commissioners may by regulations make any other provision that
they consider appropriate for the purposes of import duty in relation to
35goods kept in free zones.

(5) In this Part of this Schedule “free zone” means an area in the United
Kingdom designated as a special zone for customs purposes under section
100A of CEMA 1979.

Keeping of goods in premises approved by HMRC

3 40In the case of goods kept in premises approved by HMRC, each of the
following is an example of the kind of provision that may be made by
regulations under paragraph 2

(a) provision establishing the criteria for approval,

(b) provision about the person to whom approval is to be granted,

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(c) provision making the continued effect of the approval subject to the
meeting of conditions specified in the approval or in the regulations,

(d) provision for goods to be kept in premises only by the person to
whom the approval is granted, and

(e) 5provision for any processing of goods to be limited to processing of
a description specified in the approval or in the regulations.

Keeping of goods in free zones

4 In the case of goods kept in free zones, each of the following is an example
of the kind of provision that may be made by regulations under paragraph
102

(a) provision authorising any processing of goods, or the carrying on of
any other activity, in a free zone (subject only to restrictions or other
limitations, exceptions or conditions that are specified),

(b) provision treating any chargeable goods entering a free zone as if
15they had been declared for a storage procedure,

(c) provision establishing a presumption (unless the contrary is shown)
that goods taken out of a free zone are chargeable goods and
requiring the goods to be declared for a Customs procedure,

(d) provision requiring goods entering or leaving a free zone to be
20presented at a place of a specified description together with
documents of a specified description, and

(e) provision for exempting goods of a specified description from the
application of any other provision made by or under this Part of this
Act in cases where they are wholly consumed in a free zone or
25otherwise cease to exist having been wholly used in a free zone.

Part 3 Transit procedure

Meaning of goods declared for “a transit procedure”

5 (1) A declaration of goods for “a transit procedure” is a declaration—

(a) 30that goods are to move from one place in the United Kingdom to
another place in the United Kingdom, and

(b) that the goods, so long as they are in the United Kingdom, are to be
subject to requirements in relation to their movement in the United
Kingdom imposed on any person by or under regulations made by
35HMRC Commissioners.

(2) Each of the following is an example of the kind of requirements that may be
imposed by the regulations—

(a) a requirement for the goods to be presented at places of a specified
description together with documents of a specified description,

(b) 40a requirement for the goods to be presented at any place within
paragraph (a) at or before such time as may be specified,

(c) a requirement for the route by which the goods are to be moved to be
a specified route,

(d) a requirement for the movement of the goods to be by a specified
45means of transport, and

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(e) requirements imposed on any person who is in possession or control
of the goods in circumstances where the person knows, or ought
reasonably to have known, that the goods are subject to a transit
procedure.

5Other requirements in relation to transit procedure

6 (1) HMRC Commissioners may by regulations make provision imposing any
other requirements on any person in relation to a transit procedure in
respect of goods declared for the procedure.

(2) Each of the following is an example of the kind of requirements that may be
10imposed by the regulations—

(a) a requirement for the goods to be in a specified condition at specified
times,

(b) a requirement for the goods to be identified by reference to specified
documents and for the documents to accompany the goods,

(c) 15a requirement for a person to permit the inspection of the goods, the
means of transport by which the goods are moved and the
documents mentioned in paragraph (c), and

(d) a requirement imposed on any person for the purposes of, or in
connection with, implementing any international arrangement to
20which Her Majesty’s government in the United Kingdom is a party.

Deeming a declaration for a transit procedure to be made

7 (1) Regulations made by HMRC Commissioners may make provision, in
specified cases, for treating a person as having declared goods for a transit
procedure.

(2) 25The regulations may make provision for treating a transit procedure for
which goods are declared as a result of this paragraph as discharged in
specified cases.

Part 4 Inward processing procedure

30Introduction

8 A declaration of goods for “an inward processing procedure” may be—

(a) a declaration in the standard form (which is dealt with by
paragraphs 9 and 10), or

(b) a declaration in the supplementary form (which is dealt with by
35paragraphs 11 and 12).

Meaning of goods declared for “an inward processing procedure” in the standard form

9 (1) A declaration of goods for “an inward processing procedure” in the
standard form is a declaration—

(a) that the goods are to be imported into the United Kingdom in order
40to be processed there,

(b) that the processing is to take place during a temporary period,