Penalties: changes to Customs (Contravention of a Relevant Rule) Regulations 2003
Published 24 April 2018
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This publication is available at https://www.gov.uk/government/publications/penalties-changes-to-the-customs-contravention-of-a-relevant-rule-regulations-2003/penalties-changes-to-customs-contravention-of-a-relevant-rule-regulations-2003
Who is likely to be affected
Businesses and individuals who do not comply with a duty, obligation, requirement or condition in Union customs legislation.
General description of the measure
This instrument amends regulation 2 and the Schedule of contraventions in the Customs (Contravention of a Relevant Rule) Regulations 2003 (The 2003 Regulations) to replace references in relation to the Community Customs Code (Council Regulation (EEC) 29 3/92) (CCC) and associated legislation with references to the Union Customs Code (Regulation (EU) No 952/2013) (UCC) and associated legislation.
Policy objective
This amendment makes sure that UK domestic law concerning the imposition of civil administrative financial penalties, which is intended to be applied in conjunction with provisions of EU law, cross-refers to the most recent version of the EU legislation with which it was intended to operate.
Background to the measure
Section 26 of the Finance Act 2003 gives a power for HM Treasury to prescribe where a breach of a requirement imposed by, or under certain specified tax legislation, makes a person liable to a civil financial penalty, up to a maximum set out in section 26(5) of the Act. Currently the CCC is a piece of tax legislation specified for these purposes. Pursuant to the power in section 26 of the Finance Act, the 2003 Regulations set out a number of breaches of the CCC and the Implementing Regulation which will attract civil penalties.
The CCC was replaced by the UCC in 2016. A draft Order was laid before the House of Commons, and came into force on 30 March 2018, to update the Finance Act 2003 so that the UCC is a piece of specified tax legislation.
This instrument will amend the 2003 Regulations to replace the outdated references to the CCC and implementing regulation with the UCC and associated legislation as appropriate.
Detailed proposal
Operative date
A draft order to amend the Finance Act 2003 was laid before the House of Commons and came into force on 30 March 2018. This instrument was made on the 16th of April 2018 and laid on the 17 April 2018 and is intended to come into force on 9 May 2018.
Current law
The Customs (Contravention of a Relevant Rule) Regulations 2003.
Proposed revisions
References in regulation 2 and the Schedule to the 2003 Regulations in relation to the CCC and associated legislation will be replaced with references in relation to the UCC and associated legislation.
Summary of impacts
Exchequer impact (£m)
| 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 | 2022 to 2023 |
|---|---|---|---|---|---|
| - | negligible | negligible | negligible | negligible | negligible |
This amendment is expected to have a negligible impact on the Exchequer. The final costing will be subject to scrutiny by the Office for Budget Responsibility.
Economic impact
This amendment is not expected to have any significant economic impacts.
Impact on individuals, households and families
There is not expected to be any impact on individuals or households due to this being a technical change that primarily affects businesses. There is no impact on family formation, stability or breakdown.
Equalities impact
No equality impacts in relation to any protected characteristic have been identified in relation to these amendments.
Impact on business including civil society organisations
There will be no impact on compliant businesses and civil society organisations; it will only impact on businesses that are contravening a customs condition or obligation. However, compliant businesses and civil society organisations are expected to incur a negligible one-off cost of familiarisation with the rules in the UCC. It is not expected there will be any on-going costs.
Operational impact (£m) (HMRC or other)
HMRC will not incur any additional costs as a result of this change.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
These amendments will be kept under review through communication with affected taxpayer groups.
Further advice
If you have any questions about this change, contact Marilyn Seago on Telephone: 03000 593391 or email: marilyn.seago@hmrc.gsi.gov.uk
Declaration
Mel Stride MP, Financial Secretary to the Treasury, has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.