Regulation 45 Interest on late payment of import dutyC1I1

Import duty payable carries interest at the late payment interest rate from the late payment interest start date until the date of payment.

The late payment interest start date is the date following the date on or before which a liability to pay import duty must be discharged.

Where a person is liable to import duty in respect of goods and the liability has—

any such import duty payable also carries interest at the late payment interest rate from the date the person incurred the liability to import duty under the Act until the date the person is notified, or treated as notified, of that liability.

For the purposes of paragraph (3), cases in which liability has arisen because of non-compliance with a Customs obligation include any case in which a liability has arisen under sections 4(3), 4(4)(a) where (4)(c) applies, 4(4)(d) or 5(2) of the Act.

The late payment interest rate is the percentage per annum given by the formula—F2

where BR is the official Bank rate determined by the Bank of England Monetary Policy Committee at the operative meeting.

For the purposes of paragraph (4), “the operative meeting”, in relation to the late payment interest rate applicable in respect of any day, means the most recent meeting of the Bank of England Monetary Policy Committee apart from any meeting later than the 13th working day before that day.

HMRC Commissioners may waive a charge to interest under this regulation where they think that the charge would cause serious economic or social difficulties to the person liable to the charge.

No interest arises under this regulation if the amount of import duty is less than £9.

Any interest determined under this regulation is recoverable as if it were an amount of import duty.

Paragraph (1) applies even if the late payment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882 M1.

Late payment interest is not payable on late payment interest.

For the purposes of this regulation, a reference to import duty being paid includes a reference to its being set off against an amount payable by HMRC (and, accordingly, the reference to the date of payment includes a reference to the date from which the set-off takes effect).