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

(c) that the processing is to consist of qualifying processing activities,
and

(d) that the processing of the goods is to be carried out in accordance
with requirements imposed on any person by or under regulations
5made by HMRC Commissioners.

(2) The temporary period during which the processing is to take place is the
period specified in a notice given to the person making the declaration by an
HMRC officer.

(3) That period may be subsequently extended (or further extended) by another
10notice given as mentioned in sub-paragraph (2).

(4) For the purposes of this paragraph processing “consists of qualifying
processing activities” in relation to any goods if—

(a) the processing is the repair of the goods,

(b) the processing of the goods (“the imported goods”) results in the
15production or manufacture of other goods in which the imported
goods can be identified,

(c) the processing is the use of production accessories, or

(d) the processing is the destruction of the goods.

(5) If an inward processing procedure in the standard form has effect in relation
20to any goods, the goods may be exported in accordance with the applicable
export provisions for a temporary period for processing outside the United
Kingdom without discharging the procedure.

(6) The inward processing procedure in the standard form is not discharged in
accordance with sub-paragraph (5) only if—

(a) 25the processing of the goods outside the United Kingdom is carried
out in accordance with requirements imposed on any person by or
under regulations made by HMRC Commissioners,

(b) the processing takes place during a period specified in a notice given
to the person making the declaration by an HMRC officer (and sub-
30paragraph (3) also applies for the purposes of this sub-paragraph),
and

(c) any other conditions specified in regulations made by HMRC
Commissioners are met.

(7) The requirements that may be imposed by regulations under this paragraph
35include—

(a) requirements that any processing of a specified description of any
goods must result in the production or manufacture of the approved
quantity of other goods, and

(b) requirements that any processing is to be carried out only by persons
40of a specified description.

(8) For the purposes of sub-paragraph (7)(a) “the approved quantity of other
goods” means a quantity of the other goods that is determined by reference
to a specified methodology.

(9) The provision that may be made by the regulations about a methodology
45includes provision for the methodology—

(a) to be framed by reference to average production or manufacture of
goods over a period,

(b) to apply generally to specified cases, or

(c) to be set by an HMRC officer or chosen by the person who has
declared the goods for an inward processing procedure in the
standard form (subject to other provision in the regulations limiting
the choice).

5Other requirements in relation to inward processing procedure in the standard form

10 HMRC Commissioners may by regulations make provision imposing any
other requirements on any person in relation to an inward processing
procedure in the standard form in respect of goods declared for the
procedure.

10Meaning of goods declared for “an inward processing procedure” in the supplementary form

11 A declaration of goods for “an inward processing procedure” in the
supplementary form is a declaration—

(a) that the goods are to be subject to any operation designed to secure
that they comply with requirements that must be met before the
15goods can lawfully be released for free circulation in the United
Kingdom, or

(b) that the goods are to be subject to any operation designed to preserve
them, improve their appearance or marketable quality or otherwise
prepare them for distribution or resale.

20Requirements in relation to inward processing procedure in the supplementary form

12 (1) HMRC Commissioners may by regulations make provision imposing
requirements on any person in relation to an inward processing procedure
in the supplementary form in respect of goods declared for the procedure.

(2) The provision that may be made by the regulations includes provision that
25may be made by or under paragraph 9 or 10.

Part 5 Authorised use procedure

Meaning of goods declared for “an authorised use procedure”

13 A declaration of goods for “an authorised use procedure” is a declaration
30that the goods are to be subject to use of a description specified in
regulations made by HMRC Commissioners.

Other requirements in relation to authorised use procedure

14 HMRC Commissioners may by regulations make provision imposing any
other requirements on any person in relation to an authorised use procedure
35in respect of goods declared for the procedure.

Part 6 Temporary admission procedure

Meaning of goods declared for “a temporary admission procedure”

15 A declaration of goods for “a temporary admission procedure” is a
5declaration—

(a) that the goods are of a description specified in regulations made by
HMRC Commissioners, and

(b) that the goods are to be used for a period specified in regulations
made by HMRC Commissioners before the goods are exported from
10the United Kingdom in accordance with the applicable export
provisions.

Other requirements in relation to temporary admission procedure

16 HMRC Commissioners may by regulations make provision imposing any
other requirements on any person in relation to a temporary admission
15procedure in respect of goods declared for the procedure.

Part 7 Supplementary provisions

Records

17 (1) HMRC Commissioners may by regulations make provision about the
20keeping of records in respect of goods that are subject to a special Customs
procedure.

(2) The regulations may provide for requirements to be imposed, in respect of
records of a specified description, on—

(a) any person to whom an authorisation is granted to declare the goods
25for the procedure,

(b) any person to whom any other authorisation is granted in
accordance with regulations made under any provision of this
Schedule,

(c) any person who is involved to any extent in handling, processing,
30disposing of or otherwise dealing with the goods while the
procedure has effect, or

(d) any other person.

Discharge of special Customs procedures: rules applicable to all procedures

18 (1) The provision made by or under this Schedule in relation to goods declared
35for a special Customs procedure has effect from the time at which the goods
are released to the procedure until the time at which the procedure is
discharged in accordance with this paragraph or paragraph 19.

(2) A special Customs procedure is discharged if—

(a) the goods are declared for another Customs procedure, and

(b) 40HMRC accept the declaration.

(3) Directions given by HMRC Commissioners may require a special Customs
procedure to be discharged before a date specified in, or determined in
accordance with, the directions.

(4) If—

(a) 5the procedure is not discharged before that date, and

(b) an HMRC officer gives a notice under this sub-paragraph to the
person who declared the goods for the procedure,

the goods are treated for the purposes of this Part of this Act as if, at the time
at which the notice is given, that person had declared the goods for the free-
10circulation procedure and HMRC had accepted that declaration.

(5) Directions under this paragraph—

(a) may be given generally by HMRC Commissioners or in relation to
the particular case concerned by an HMRC officer, and

(b) if given generally, may be given by way of a public notice given by
15HMRC Commissioners.

(6) Any regulations made under the Part of this Schedule relating to a particular
special Customs procedure—

(a) may require the procedure to be discharged before a specified date,
and

(b) 20may make provision replicating or applying, with or without
modifications, the provision made by sub-paragraph (4) or (5).

(7) Any regulations made under the Part of this Schedule relating to a particular
special Customs procedure may require the goods to be presented at any
place in accordance with the regulations before the procedure is discharged.

25Discharge of special Customs procedures: rules applicable to particular procedures

19 (1) This paragraph specifies further cases in which particular special Customs
procedures are discharged.

(2) A transit procedure is discharged in accordance with provision made by
regulations made by HMRC Commissioners.

(3) 30A storage procedure, an inward processing procedure, an authorised use
procedure or a temporary admission procedure is discharged if—

(a) the goods are exported from the United Kingdom in accordance with
the applicable export provisions,

(b) the goods are destroyed, or

(c) 35the goods are liable to forfeiture.

(4) In addition, an authorised use procedure or temporary admission procedure
in respect of any goods is discharged if the requirements imposed by or
under this Schedule in relation to the procedure are met in respect of the
goods.

40Discharge of special Customs procedures: other provision

20 (1) Despite the provision made by paragraph 18 or 19, a special Customs
procedure in respect of any goods is not discharged if a liability to import
duty is incurred in respect of the goods while the procedure has effect and—

(a) a guarantee has not been given in accordance with regulations under
45paragraph 6 of Schedule 6 that has effect in relation to the goods, or

(b) if no guarantee is given, the import duty has not been paid.

(2) If a special Customs procedure in respect of any goods is prevented from
being discharged as a result of sub-paragraph (1) (and only as a result of that
sub-paragraph), that does not prevent the goods from also being released to
5another special Customs procedure.

(3) HMRC Commissioners may by regulations make provision as to the
evidence which is to be required, or is to be sufficient, for the purpose of
showing that a special Customs procedure has been discharged.

Liability to import duty imposed on persons other than declarant etc

21 (1) 10HMRC Commissioners may by regulations impose a liability to import duty
on any person who, at any time while a special Customs procedure has
effect, breaches a requirement imposed on the person by provision made by
or under this Schedule.

(2) The regulations may provide for cases in which the person is not liable to
15import duty even though the person breaches a requirement.

Changes in nature of goods while subject to a special Customs procedure etc

22 (1) If at any time while a special Customs procedure has effect in relation to any
goods—

(a) there is a change in the goods, and

(b) 20a liability to import duty is incurred,

HMRC Commissioners may by regulations make provision for determining
the liability by reference to the goods as they stood when the declaration for
the procedure was made (and not when the liability is incurred).

(2) The regulations—

(a) 25may apply only in relation to a special Customs procedure of a
specified description, and

(b) may provide for their application to be limited to cases where an
HMRC officer considers that the regulations ought to apply.

(3) In the case of goods declared for a special Customs procedure, HMRC
30Commissioners may make provision by regulations for altering the value of
the goods for the purposes of import duty so as to take account of things
done after the declaration is made.

(4) The regulations may provide—

(a) for the alteration to be applicable only in relation to special Customs
35procedures of a specified description and only in relation to things
done of a specified description, and

(b) for the amount of the alteration to be determined in accordance with
the regulations.

(5) Except as provided for by—

(a) 40the preceding provisions of this paragraph, or

(b) provision made in regulations made by HMRC Commissioners,

if there is a change in any goods at any time while a special Customs
procedure has effect in relation to the goods, the goods are to be regarded
nonetheless as the same goods for the purposes of any provision made by or
45under this Part of this Act.

(6) For the purposes of this paragraph it does not matter—

(a) whether a change in any goods is a change in their nature or in any
other respect, or

(b) whether a change in any goods is as a result of their incorporation
5into any other goods or anything else.

Use of equivalent domestic goods

23 (1) HMRC Commissioners may, in cases where goods (“the imported goods”)
are intended to be declared for a special Customs procedure, by regulations
make provision for requirements in relation to the procedure to be met by
10reference to equivalent domestic goods.

(2) Goods are “equivalent domestic goods” if they are domestic goods that are
of the same, or of substantially the same, description as the imported goods.

(3) Among other things, the regulations may—

(a) secure that, once a declaration of the imported goods for a special
15Customs procedure is accepted by HMRC, the goods are treated for
the purposes of this Part of this Act as if they had been
simultaneously released to, and discharged from, the procedure, and

(b) provide that goods may not be so treated unless the requirements in
relation to the procedure were met by reference to the equivalent
20domestic goods.

(4) The provision that may be made by the regulations includes provision for
authorising goods in accordance with the regulations before they may be
used as equivalent domestic goods.

(5) HMRC Commissioners may by regulations make provision as to cases in
25which goods are, or are not, to be regarded as equivalent domestic goods for
the purposes of this paragraph.

(6) This paragraph does not apply to a transit procedure.

Directions

24 Any directions given by the Treasury or HMRC Commissioners under this
30Schedule may be amended or revoked.

Section 10

SCHEDULE 3 Eligible developing countries

Part 1 Introduction

1 35For the purposes of section 10—

(a) a country or territory is an “eligible developing country” if it is listed
in Part 2 or Part 3 of this Schedule;

(b) a country or territory is a “least developed country” if it is listed in
Part 2 of this Schedule.

Part 2 Least developed countries

Part 3 Other eligible developing countries

5Part 4 Power to amend Parts 2 and 3

2 (1) The Secretary of State may by regulations add countries or territories to or
remove them from a list in Part 2 or 3 if the Secretary of State is satisfied
that—

(a) 10in the case of the list in Part 2, the country or territory has become, or
ceased to be, a least developed country or territory;

(b) in the case of the list in Part 3, the country has become, or ceased to
be, a country or territory that is similarly situated to the other
countries and territories listed in Part 3, in terms of its economic
15characteristics.

(2) In determining whether a country or territory has become or ceased to be a
least developed country or territory, the Secretary of State must have regard
to its classification by the United Nations.

(3) In determining whether a country or territory has become or ceased to be
20similarly situated to the other countries and territories listed in Part 3, the
Secretary of State must have regard, among other things, to its classification
by the World Bank.

(4) The Secretary of State may by regulations amend a list in Part 2 or 3 to reflect
a change in the name of a country or territory.

Section 13

25SCHEDULE 4 Dumping of goods or foreign subsidies causing injury to UK industry

Part 1 Key definitions

Meaning of “dumped”

1 (1) 30For the purposes of this Schedule, goods are “dumped” in the United
Kingdom if—

(a) they are imported into the United Kingdom, and

(b) their export price is less than their normal value;

and references to the “dumping” of goods are to be read accordingly.

(2) 35The “normal value” of goods means—

(a) the comparable price, in the ordinary course of trade, for like goods
(see paragraph 7) when destined for consumption in the exporting
foreign country or territory, or

(b) such other price or value as may be determined in accordance with
5provision made by regulations for specified cases where it is not
appropriate to use the price in paragraph (a).

(3) Regulations may make provision for the purposes of this paragraph—

(a) about what constitutes or does not constitute—

(i) the “export price” of goods;

(ii) 10“the comparable price”;

(iii) “in the ordinary course of trade”;

(iv) “the exporting foreign country or territory”;

(b) about how any of those matters are to be determined;

(c) to ensure that a fair comparison is made between the export price of
15goods and their normal value;

(d) about the use of sampling to determine the export price or normal
value of goods.

Meaning of “the margin of dumping”

2 For the purposes of this Schedule, “the margin of dumping”, in relation to
20goods, means the amount which is the difference between—

(a) their export price as determined in accordance with paragraph 1, and

(b) their normal value as determined in accordance with that paragraph.

Meaning of “subsidised”, “countervailable subsidy” and related terms

3 (1) For the purposes of this Schedule—

(a) 25goods are “subsidised” if they are goods in respect of whose
manufacture, production, export or transport a countervailable
subsidy is granted, and

(b) references to the “subsidisation” of goods are to be read accordingly.

(2) For the purposes of this Schedule, a “countervailable subsidy” is a subsidy
30which is specific and which is granted directly or indirectly for the
manufacture, production, export or transport of goods.

(3) For the purposes of this Schedule, a “subsidy” exists if there is—

(a) a financial contribution by a foreign authority which confers a
benefit, or

(b) 35a form of income or price support within the meaning of Article XVI
of the General Agreement on Tariffs and Trade 1994 (being part of
Annex 1A to the WTO Agreement) received from a foreign authority
which confers a benefit.

(4) For the purposes of this Schedule, a “foreign authority” means a government
40or public body within the territory of a foreign country or territory.

(5) Regulations may make provision for the purposes of this paragraph—

(a) about what constitutes or does not constitute a “subsidy”, “a
financial contribution by a foreign authority”, “a government” or a
“public body” and how any of those matters are to be determined;

(b) about what constitutes or does not constitute “a benefit” and how it
is to be determined whether a benefit is conferred;

(c) about what constitutes or does not constitute a subsidy which is
“specific” and how it is to be determined whether such a subsidy is
5granted directly or indirectly as described in sub-paragraph (2).

Meaning of “the amount of the subsidy”

4 (1) For the purposes of this Schedule, “the amount of the subsidy”, in relation to
goods, means the amount of the benefit conferred during a specified period
by the countervailable subsidy as attributed to the goods in question.

(2) 10Regulations may make provision—

(a) about how the amount of the benefit conferred by the
countervailable subsidy is to be determined for those purposes;

(b) about what constitutes or does not constitute “benefit” for those
purposes;

(c) 15about how the amount of the benefit conferred is to be attributed to
the goods in question.

(3) Such regulations may, among other things, make provision about the use of
sampling or cumulative assessments.

(4) “Specified period” means such period as may be specified by regulations.

20Meaning of “injury”

5 (1) For the purposes of this Schedule, “injury” to a UK industry in particular
goods (see paragraph 6) means—

(a) material injury, or the threat of material injury, to the industry, or

(b) material retardation of the establishment of the industry.

(2) 25Regulations may make provision about—

(a) what constitutes or does not constitute material injury to a UK
industry or the threat of such injury for the purposes of this
Schedule;

(b) what constitutes or does not constitute material retardation of the
30establishment of a UK industry for the purposes of this Schedule.

(3) Regulations may make provision about how it is to be determined for the
purposes of this Schedule whether—

(a) the dumping of goods in the United Kingdom has caused or is
causing injury to a UK industry in those goods, or

(b) 35the importation of subsidised goods into the United Kingdom has
caused or is causing injury to a UK industry in those goods.

(4) Such regulations may, among other things, make provision about the use of
sampling or cumulative assessments.

Meaning of “UK industry”

6 (1) 40For the purposes of this Schedule, a “UK industry” in particular goods
means—

(a) all the producers in the United Kingdom of like goods (see
paragraph 7), or