The Customs (Miscellaneous Amendments) (No. 2) Regulations 2024 — customs rules
Published 22 May 2024
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Who is likely to be affected
Businesses and organisations who import or export goods.
General description of the measure
The measure introduces a number of changes to customs rules that apply for imported goods. These include changes to the rules concerning eligibility for relief, remission or repayment of customs duty.
Other changes apply to goods being transported under the customs transit procedure. This is a procedure which ensures customs duty is not chargeable on certain goods transported on an international journey until the goods reach the country of final destination. The changes in this measure will ensure that HMRC can examine goods arriving under this procedure, and concern the form in which the information about these goods must be provided to HMRC.
The measure also includes various corrections and updates to customs legislation concerning the import or export of goods.
The provisions in this measure apply to movements into or out of Great Britain, and movements into or out of Northern Ireland to the extent their application is in accordance with provisions of the Windsor Framework.
Policy objective
The objective of this policy is to ensure HMRC has appropriate powers to examine imported goods, and to make necessary corrections or updates to customs legislation.
Background to the measure
HMRC has engaged with businesses and representative groups about the changes in this measure concerning customs transit arrangements. Elsewhere, the changes are either corrections, removal of obsolete provisions or other updates for which consultation is not necessary.
Detailed proposal
Operative date
The changes in this measure will have effect from 12 June 2024.
Current law
Most rules in relation to customs duty are set out in the Taxation (Cross-border Trade) Act 2018 (TCTA). These regulations include the:
- Customs (Import Duty) (EU Exit) Regulations 2018 (S.I. 2018/1248) (the import duty regulations)
- Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 (S.I. 2018/1249) (the special procedures regulations)
- Customs Transit Procedures (EU Exit) Regulations (S.I. 2018/1258) (the transit regulations)
- Customs (Export) (EU Exit) Regulations 2019 (S.I. 2019/108) (the export regulations)
- Customs (Relief from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1431) (the reliefs regulations)
- Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605) (the Northern Ireland regulations)
These regulations are all amended by this measure.
The import duty regulations specify circumstances in which import duty can be remitted or repaid by HMRC, including in cases where a lower rate of duty is available, compared with the rate that was originally charged on the imported goods.
The special procedures regulations provide rules concerning special customs procedures available for imported goods (under which customs duty may be relieved or deferred) and the outward processing procedure (concerning goods temporarily exported from the UK for process or repair).
These regulations refer to legislation that is ‘retained EU law’. The Retained EU Law (Revocation and Reform) Act 2023 provides for UK legislation that was ‘retained EU law’ to be known as ‘assimilated law’ at all times after the end of 2023.
The transit regulations set out the rules to be followed when goods arrive under internationally agreed customs transit arrangements, such as the Common Transit Convention (CTC). They also provide for the form and manner in which information must be supplied to HMRC to be specified in a public notice.
The export regulations include rules concerning export of goods, including requirements in relation to the making of an export declaration, and the form in which an export declaration can be given.
The Northern Ireland regulations provide rules concerning the relief, repayment or remission of duty chargeable where goods enter Northern Ireland. Rules in relation to certain types of repayment or remission are set out in the reference document entitled ‘repayment and remission reference document’, which is introduced by these Northern Ireland regulations. Other cases in which relief from customs duty may be available are set out in the reliefs regulations.
Proposed revisions
The import duty regulations will be amended to change the rules about when HMRC can remit or repay duty amounts in cases where a lower rate of duty to that originally charged is available. The change concerns remission and repayment in respect of lower rates of duty available under section 13 of TCTA (duty chargeable in relation to dumping, foreign subsidies and increases in imports).
The effect of this change will be that an application for remission and repayment of duty must be refused by HMRC where the lower rate of duty in question is no longer available at the time that the application is made.
The special procedures regulations are being updated to replace a reference to ‘retained EU law’ with a reference to ‘assimilated law’ and to omit a reference to legislation that has now been repealed.
The transit regulations will be amended to:
- ensure that HMRC can require that goods arriving in Great Britain under customs transit arrangements must be made available for examination.
- allow HMRC to specify further detail in a public notice about the form and manner in which information about these goods must be provided.
The export regulations will be updated to remove redundant provisions which prevented the use of certain types of export declarations in certain cases. The reliefs regulations will also be updated to correct a minor drafting error made by the Customs (Aerodromes and Miscellaneous Amendments) Regulations 2023 (S.I. 2023/1202).
The Northern Ireland regulations will be amended to update statutory references in respect of relief and repayments available to UK traders in Northern Ireland, and to provide for the publication of a new version of the ‘repayment and remission reference document’. The new version of this document will correct typographical and other errors in the current version.
Summary of impacts
Exchequer impact (£ million)
| 2024 to 2025 | 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 |
|---|---|---|---|---|---|
| Empty | Empty | Empty | Empty | Empty | Empty |
The final costing will be subject to scrutiny by the Office for Budget Responsibility, and where required, will be set out at the next fiscal event.
Economic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
The changes in this measure will not impact individuals.
The measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
It is not anticipated that there will be impacts on those in groups sharing protected characteristics.
Impact on business including civil society organisations
This measure is expected to have a negligible impact on all businesses affected by these changes. Businesses affected by each of the measures will incur a one-off cost of familiarisation with the changes. There are not expected to be any continuing costs to compliant businesses.
The changes to the transit regulations concerning examination of goods will affect non-compliant businesses only. The changes are expected to affect the very small number of businesses who fail to present their goods for examination and the anticipated impact is considered to be proportionate and justifiable as part of the customs control necessary within customs transit arrangements.
The customer experience for all businesses affected by the measures remains the same as the changes do not alter how compliant businesses interact with HMRC.
This measure is not expected to impact civil society organisations.
Operational impact (£ million) (HMRC or other)
It is not anticipated that implementing these changes will accrue any additional costs or savings for HMRC.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The provisions in this measure will be kept under review through communication and ongoing stakeholder engagement with trade bodies and other representative businesses.
Further advice
If you have any questions about these changes, please contact cpsbriefingandco-ordinationteam@hmrc.gov.uk.
Declaration
Nigel Huddleston 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.