Explanatory note

These Regulations are made by the Treasury in connection with the withdrawal of the United Kingdom (“UK”) from the European Union (“EU”). They make amendments to the secondary legislation imposing civil penalties on those who contravene Customs rules relating to the import and export of goods into the UK in order to ensure that there is a functioning penalty regime following exit day in the event that the UK leaves the EU with no deal.

Regulation 1 provides for citation and commencement. Paragraph (2) provides that regulations 1 and 3 come into force 21 days after the instrument is made. Paragraph (3) provides that regulation 2 comes into force on a day to be appointed by Treasury Regulations pursuant to the power to make such provision contained in section 52(2) of the Taxation (Cross-border Trade) Act 2018 (c.22).

Regulation 2 makes further amendments to the Customs (Contravention of a Relevant Rule) Regulations 2003 (S.I. 2003/3113) (“the 2003 Regulations”). The 2003 Regulations were previously amended by the Customs (Contravention of a Relevant Rule) (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1260) (“the 2018 Regulations”). Provision is made for the imposition of civil penalties relating to—

• — breaches of export rules which are contained in the Customs (Export) (EU Exit) Regulations 2019 (S.I. 2019/108);

• — breaches of record keeping rules which are contained in the Customs (Records) (EU Exit) Regulations 2019 (S.I. 2019/113).

Regulation 3 contains amendments to the 2018 Regulations. The amendments correct errors which have been identified in that instrument.

This instrument will be covered by an overarching HMRC impact assessment (second edition) which will be published and available on the website at https://www.gov.uk/government/collections/customs-vat-and-excise-regulations-leaving-the-eu-with-no-deal.