Introduction of public notice powers for non-duty tariff changes
Published 27 October 2021
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Who is likely to be affected
This is a procedural measure and will have limited impacts on stakeholders. The powers conferred in this legislative change mean that administrative updates, provided they do not impact the duty rate applicable, will be easier to implement and enacted more quickly. This may benefit stakeholders who refer to tariff legislation for information.
Any changes to the import duty rate payable will continue to be implemented by secondary legislation made under the Taxation (Cross-border Trade) Act 2018 (TCTA), maintaining the current levels of parliamentary scrutiny and oversight.
General description of the measure
The measure seeks to amend the TCTA via the Finance Bill 2021-22 so that non-duty changes to the UK’s tariff schedule can be made by public notice.
This measure will ensure routine technical changes to tariff legislation will be implemented more easily and quickly.
Policy objective
HM Treasury is responsible for making regulations under the TCTA to establish, and maintain in force, a tariff schedule which classifies goods, and specifies the rate of, and rules for, import duty applicable.
As the TCTA makes no distinction between the types of change to our tariff schedule, both duty and non-duty changes currently require secondary legislation. This has resulted in a high volume of secondary legislation, and a disproportionate amount of resource to make minor technical updates or error corrections, which have had no duty rate impact and simply remove potential legal ambiguity.
This measure will amend the TCTA so that non-duty changes can be made by public notice. This approach ensures simpler and quicker implementation of these technical changes to the UK’s tariff schedule. This measure will not affect the current levels of scrutiny and oversight that Parliament has over duty rate changes.
Background to the measure
This measure was announced at Autumn Budget 2021.
Detailed proposal
Operative date
The measure will have effect on and after the date of Royal Assent to Finance Bill 2021-22.
Current law
Section 7 of the TCTA provides that the tariff rate applicable to any good will be determined in accordance with the customs tariff (made under Section 8 TCTA), as amended or adjusted by provisions made under Sections 9 to 15, with further relevant provision in Sections 16 to 19.
A significant amount of the legislative framework for determining the amount of duty applicable to any good is contained in so-called “reference documents”. These are documents which have legal effect through incorporation by reference in regulations.
Because reference documents are incorporated by reference in regulations, any change to the reference document requires the regulation which refers to it to be updated.
Proposed revisions
Legislation will be introduced in Finance Bill 2021-22 to amend the TCTA so that where regulations are currently made under Sections 8 to 19 to implement reference documents, these documents can also be implemented by public notice.
The power to modify reference documents by public notice will only be exercisable in cases where there is no alteration to the amount of import duty applicable to any goods. If the amount of duty applicable to any good would be altered, then this will be done using the existing procedure applicable to that section – generally this would be negative regulations, although where regulations under Section 8 increase the amount of duty payable in a standard case these must be via the made affirmative procedure, in accordance with Section 32(2) and (3)(b) TCTA.
In effect, the use of the power would be limited to technical and minor administrative changes only. It will not and cannot alter the amount of import duty payable by any goods.
Summary of impacts
Exchequer impact (£m)
| 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | 2026 to 2027 |
|---|---|---|---|---|---|
| nil | nil | nil | nil | nil | nil |
The measure is not expected to have an Exchequer impact.
Economic impact
This measure is not expected to have any significant economic impacts.
The terms used in this section are defined in line with the Office for Budget Responsibility’s indirect effects process. This will apply where, for example, a measure affects inflation or growth. You can request further details regarding this measure at the email address listed below.
Impact on individuals, households and families
There is expected to be no impact on individuals. The measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
It is not anticipated that this measure will impact on groups sharing protected characteristics.
Impact on business including civil society organisations
This measure makes a purely procedural change to how technical or administrative changes are made. There is no impact on businesses, including civil society organisations.
Operational impact (£m) (HMRC or other)
Operational impacts have been considered and none have been identified.
Public notices will be provided on a relevant GOV.UK website alongside other relevant tariff legislation documents that are currently published online.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure will be kept under review through communication with affected taxpayer groups.
Further advice
If you have any questions about this change, please contact Gavin Moore (Gavin.Moore@hmtreasury.gov.uk) or Bilal Mazhar (Bilal.Mazhar@hmtreasury.gov.uk) in the Trade Policy Team.