Explanatory note

These Regulations are made by the Treasury further to Part 1 of the Taxation (Cross-border Trade) Act 2018 (c. 22) (“the Act”). This is an EU Exit statutory instrument.

Regulation 1 provides for citation and commencement. The Regulations will be brought into force by way of a separate statutory instrument made under section 52 of the Act.

Regulations 2(3), 4(3) and (5), 6 and 7 amend provisions of the Customs (Import Duty) (EU Exit) Regulations 2018 (S.I. 2018/1248) (import duty regulations) and Customs (Export) (EU Exit) Regulations 2019 (S.I. 2019/108) (export regulations) so that simplified customs procedures apply to travellers carrying commercial goods of a given value, weight or type in their baggage. Their declaration need not be made by electronic means and it doubles as their required notification to Customs. Similar goes for their voluntary declarations, but an expected four-day window of opportunity is now specified for making the declaration before importing the goods. Certain financial thresholds for simplified customs procedures are increased.

Regulations 2(2) and (4) to (9) amend the import duty regulations to enable declarations by conduct for the free-circulation and temporary admission procedures by representatives of NATO forces where a relief is available. Regulations 4(2),(4) and (6) to (8) amend the export regulations to enable a representative of NATO forces to make an export declarations by conduct. Regulations 3 and 8 make consequential amendments to the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 (S.I. 2018/1249) and to the Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1341).

Regulations 2(7) and 4(9) further simplify the import and export declarations processes in the case of oil, gas and electricity imported or exported by pipe-line, cable or similar means.

Regulation 2(10) amends the import duty regulations to require advance declarations for certain goods intended to be carried on shuttle trains and regulation 7 makes an associated penalty.

Regulation 5 amends and adds to the modifications of the Customs (Export) (EU Exit) Regulations 2019 (S.I. 2019/108) made by the Customs (Crown Dependencies Customs Union) (EU Exit) Regulations 2019 (S.I. 2019/385).

The notices referred to in regulation 26E, 37B, and 131G of the import duty regulations and 24C and 38A of the export regulations inserted by regulations 2(4), (7) and (10) and 4(6) and (9) will be published at www.gov.uk/government/collections/customs-vat-and-excise-eu-exit-legislation-from-1-january-2021. A person unable to access the notices electronically may access them while government advice on social distancing and unnecessary travel applies, in hard copy by post free of charge on application to 07741835049, and otherwise by inspection free of charge at HMRC, 100 Parliament Street, London SW1A 2BQ.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.