Explanatory note

These Regulations amend section 43 of the Customs and Excise Management Act 1979 in order to implement in UK law the obligations contained in Council Directive 79/623/EEC to harmonize legal provisions relating to customs debt.

Although duty is normally assessed at the time when entry of imported goods is accepted, goods chargeable with a Community customs duty must be considered as imported when they enter any part of the territories of the Member States comprising the Community customs territory. The amendment to section 43(2)(c) provides that, subject to the rule in subsection (2C), Community customs duties chargeable in respect of unentered goods shall be those in force when the goods entered the Community customs territory.

The new subsections to section 43 have the following effect:—

(i) subsection (2A) revises the rule for charging customs duty where conditions or restrictions imposed under section 47 or 48 are not observed. Breaches of any condition or restriction (other than one which has to be satisfied before goods are released) will give rise to a liability to pay customs duties applicable to the goods at the moment when the breach occurs.

(ii) subsection (2B) provides that where waste or debris which is derived from imported goods in free circulation is itself chargeable with customs duty, the duties shall be those in force at the moment of destruction.

(iii) subsection (2C) introduces a new rule which provides that the unlawful removal of unentered goods from customs charge shall result in customs duty being charged by reference to the time of the removal.