Guidance

Notice to Traders 97/21

Published 25 November 2021

Introduction

This notice explains how the rules are applied to this quota and how to apply for a licence valid from 1 January 2022. It also advises you of the quota amounts available in the import tariff quota period (1 June 2021 to 31 May 2022) and in each sub-period. Details of the available quantities are outlined in Annex 1 of this notice.

Background

The distinction between New Importers and Traditional Importers under this quota no longer applies.

You must supply the following evidence to prove that you are eligible for a garlic quota licence, if this is your first application in this quota. If you do not have the proof of trade as detailed below, you are not eligible and cannot apply for a quota licence.

If this is your first application in the quota, you will need to provide proof that you have imported at least 25 tonnes of fresh garlic during:

• The 12-month period ending two months before the first application can be submitted for the 2021/2022 quota year (1 March 2020 – 29 February 2021);
• The 12-month period immediately before that (1 March 2019 – 28 February 2020).

To qualify for proof of trade, the product must be released for free circulation in the UK. However, product released for free circulation in the EU prior to 31 December 2020 may also be counted. Product imported into the UK from the EU on or after 1 January 2021 can be counted towards your proof of trade. Imports must take place under a GB EORI number.

In addition, you will need to establish a reference quantity. This reference quantity will be based on an average of all the fresh garlic you have imported in each of the above two reference periods. You cannot apply for more than your reference quantity in each quota year and this quantity must be split equally between the sub-periods.

To count towards your reference quantity, the product must be released for free circulation in the UK. However, product released for free circulation in the EU prior to 31 December 2020 may also be counted. Product imported into the UK from the EU on or after 1 January 2021 can be counted towards your reference quantity. Imports must take place under a GB EORI number unless the RPA has received satisfactory evidence that a legal merger has taken place.

If you are required to merge your companies to comply with the declaration of independence as detailed below, you can combine the reference quantities of the companies forming the merger subject to satisfactory evidence being provided to RPA. Please see Annex III for procedures pertaining to merging companies.

In addition to the above requirements, you must be established and registered for VAT in the UK. You must provide us with a copy of your current VAT registration certificate.

Proof of Trade and Reference Quantity

If you use electronic licences, we will need to see a schedule giving details of:

• The licence number(s);
• The date(s) of import;
• The weight of each electronic attribution; and
• The import entry number for each electronic attribution.

If you use paper licences, or the commodity is non-licensable, you must supply the original C88 import documents or copies certified as a “true copy” of the original, stamped and signed by H M Revenue & Customs. We will accept photocopies of the Customs stamp or scanned versions of these documents on condition that the original documents are posted to the RPA as quickly as possible afterwards.

To request endorsement of a declaration at the time of entry, you should enter the code “CAP11” in box 44 of your declaration. You do not need to enter any additional text with this code.

You must fax a copy of the entry and any supporting documents (clearly marked as ‘request for endorsement’) to the H M Revenue & Customs (HMRC) National Clearance Hub (NCH) on 03000 588 462.

You can also e-mail the HMRC National Clearance Hub at nch@hmrc.gov.uk.

C88s which were not endorsed at the time of import must be sent for endorsement to:

H M Revenue & Customs
National Clearance Hub
1st Floor West, Ralli Quays,
3 Stanley Street,
Salford.
M60 9LA

Telephone number: 03000 588 454
Fax number: 03000 588 462

Please advise HMRC that the endorsements are required for GATT purposes.

You should only ask HMRC to endorse the number of copy entries necessary for the relevant regulation. If you send more copies than is necessary, it may delay the return of your endorsed copy entries.

HMRC agents or representatives cannot apply for import licences under these quota arrangements.

We will also need to see a copy of your current VAT certificate.

Proof that you meet these requirements must be submitted each year prior to your first application in that quota year.

Declaration of Independence

A declaration of independence will be required for this quota. It must be submitted with your first licence application of the quota period and must contain:

• A declaration that the applicant is not linked with any other person applying for the same tariff quota; or
• If the applicant is linked with another person applying for the same tariff quota, a declaration that identifies that linked person and evidence that the applicant regularly engages in substantial economic activities with other third parties.

Please see Annex 2 for specific requirements and Annex 4 for the declaration form.

Available Quantities and Distribution

The available quantities and sub-periods under this quota are set out in Annex 1.

Applying for a Licence

Before you submit a licence application, you must make sure that you are registered with the RPA. If your company is not registered, a company director or another individual legally responsible for the business must apply for a six-digit Trader Registration Number.

You will need to telephone our Rural Payments Helpline on 03000 200 301 and select options 2, 1 and 3 and ask to be registered as a trader. (These options are correct at the time of publication but are liable to change without notice).

You can find more details on our website However, not all of the information is available on the website. If you require assistance with the forms detailed below, please contact the Import Licensing team.

You must submit your licence applications using an AGRIM import licence application form. We advise you to use the latest version of the application form. You can submit applications either by post or by email. The email address for licence applications is trader@rpa.gov.uk.

We must receive your quota application during the first seven calendar days of:
May, August, November and February.

We may also invite applications in the months between if there is quantity remaining in each sub period. You will be able to submit further applications if you have not already applied for the full 25% of your reference quantity.

It is your responsibility to ensure that your application, all supporting documentation, and the security are correct at the time of submission. They must be received during the application window beginning 1 December to 7 December 2021, no later than 17:00.

Note: We will reject any applications where the security and / or proof of trade is received after 17:00 on Tuesday 7 December 2021.

Applications submitted in any import tariff quota sub period must not exceed 25% of your reference quantity.

As part of the garlic import tariff quota, licence applications must include the following entries:

• Box 8 of your application must state the country of origin of the product and you must select this as ‘Yes’. Licences will carry an obligation to import from the exact country stated;
• Box 15 of your application must state the full CN code description as: “Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled: Garlic”.
• Box 20 of your application must contain the correct import tariff quota order number.

You must not lodge more than one import licence application for the same quota order number in an application period.

Note: If you lodge more than one application for the same quota order number, all your applications will be rejected.

Security

Security of £60 per tonne must be lodged with each licence application. You can find further information on how to lodge your security by searching for ‘Licence securities for the import/export of agricultural products’ on GOV.UK.

Issuing Licences

Your quota licence will be issued towards the end of December 2021. It will be valid from 1 January 2022 to 31 May 2022.

Please note that the reduced duty will only be valid for the quantities shown in sections 17 and 18 of your licence.

As licences will only be valid for imports into the UK, your licence will be issued electronically. We no longer issue paper import licences.

Authority

You can find details of the arrangements in Statutory Instrument 2020/1432. You can obtain copies from Stationery Office bookshops and accredited agents, or order from the Stationery Office website.

You can also access Statutory Instruments electronically by visiting the UK’s Legislation website. The RPA is not responsible for the accuracy or completeness of the Legislation website. Whilst every care has been taken in producing this guidance, the Statutory Instrument as published is definitive.

Enquiries

If you have any questions about this notice, please contact the Import Licensing team as follows:

• Our telephone helpline number – 03300 416 500 (Option 1)

• E-mail contact – trader@rpa.gov.uk

• Our postal address is:

Import licencing Team
Rural Payments Agency
Lancaster House
Hampshire Court
Newcastle Business Park
Newcastle Upon Tyne
NE4 7YH

Annex 1

Tariff quotas opened for imports of garlic from China falling within CN code 0703 2000

Origin	Order Number	Third sub-period (December to February)	Fourth sub-period (March to May)
China	05.4105	360,560 kg	1,917,250kg

Annex 2

Declaration of Independence

An applicant is linked with another person if the applicant;
(a) Has close business links with that person,
(b) Has family ties with that person, or
(c) Has an important business relationship with that person.

A person (A) has close business links with another person (B) if;
(i) B is a parent undertaking of A;
(ii) B is a subsidiary undertaking of A;
(iii) B is a parent undertaking of a subsidiary undertaking of A;
(iv) B is a subsidiary undertaking of a parent undertaking of A;
(iv) B owns or controls 25% or more of the voting rights or capital of A; or
(v) A own or controls 25% or more of the voting rights or capital of B,

For the purposes of the above, “subsidiary undertaking” and “parent undertaking” have the meanings given in section 1162 of the Companies Act 2006, read with Schedule 7 to that Act;

Having ‘family ties’ with another applicant means that;
(i) The applicants are spouses or civil partners, or are living together as spouses or as if they were civil partners, or
(ii) The applicant is the brother, sister, parent, child or grandchild of another applicant.

‘Important business relationship’ includes a relationship where;
(i) The applicants are employer and employee,
(ii) The applicants are partners in a partnership, or officers or directors in the same undertaking.

‘Substantial economic activities’ means activities carried out by the applicant relating to the production, distribution or consumption of goods and services, which are not carried out for the sole purpose of applying for quotas.

Annex 3

Merger Process

Declaration of Independence

This quota will require a declaration of independence to be provided to support your application for a licence. A template for the declaration of independence can be found at Annex 4.

The declaration must contain:

• A declaration that the applicant is not linked with any other person applying for the same tariff quota; or
• If the applicant is linked with another person applying for the same tariff quota, a declaration that identifies that linked person and evidence that the applicant regularly engages in substantial economic activities with other third parties.

Please see Annex 2 of this Notice for further information.

If the applicants are linked, and do not perform substantial economic activities, the linked companies will need to merge in order to comply with the declaration of independence.

The reference quantity of the ongoing company will be established by combining the reference quantities of the companies forming the merger subject to satisfactory evidence being submitted to RPA.

Evidence of a merger

As different arrangements can apply to mergers it is not possible to provide prescriptive guidance so you may wish to take specialist legal advice. You should make a commercial decision regarding when the merger should take place, based on the circumstances of your company.

Evidence may be in the form of:

• A solicitor’s / accountant’s letter confirming the merger and effective date
• Signed copies of special resolution
• Deed of sale including transfer of assets and liabilities.

At the latest, evidence of the merger must be provided before you submit your licence application.

After the effective date of the merger, the merged companies must not submit applications for quota licences. Following the merger, it will be expected that the merged companies will be formally dissolved and evidence to that effect provided to the RPA.

Transfer of licences following a company merger

You will need to make a written request to the RPA for any extant licences in the name of the merged companies to be transferred into the name of the ongoing company