Explanatory note

These Regulations apply to specified preferential trade arrangements, i.e. arrangements entered into between the United Kingdom and other countries or territories which provide for goods originating from the United Kingdom to be subject to a preferential rate of import duty in that other country or territory.

Part 1 creates an obligation to notify errors in evidence provided pursuant to such arrangements.

Regulation 3 sets out the circumstances in which this obligation will apply. It applies in relation to arrangements which are listed in the Schedule and under which the United Kingdom must make provision requiring a person who has provided evidence that goods originate from the United Kingdom to give notice where the evidence is erroneous. Documentation relating to relevant preferential trade arrangements will be accessible from https://www.gov.uk/government/collections/customs-vat-and-excise-uk-transition-legislation-from-1-january-2021. A person who is unable to access this documentation online may inspect it free of charge, by appointment at the offices of His Majesty’s Revenue and Customs (“HMRC”), 14 Westfield Avenue, London E20 1HZ.

Regulation 4 requires an evidence provider to notify the evidence recipient of a material error (as defined in regulation 2) in evidence of origin in the United Kingdom.

Regulation 5 makes provision for details of such notification to be set out by public notice. Where such a notice is made, it will be accessible from https://www.gov.uk/government/collections/customs-vat-and-excise-uk-transition-legislation-from-1-january-2021. A person who is unable to access a notice online may inspect it free of charge, by appointment at the offices of HMRC, 14 Westfield Avenue, London E20 1HZ.

Part 2 makes provision for penalties for failure to comply with the obligation under regulation 4 and for matters arising from such penalties.

Regulation 7 provides for liability to a penalty of up to £1,000.

Regulation 8 provides for exceptions to liability (for example, in cases of reasonable excuse).

Regulation 9 provides for the power of HMRC and the tribunal to alter the amount of a penalty.

Regulations 10 and 11 concern demands for penalties.

Regulation 12 provides a right to appeal (against both liability to a penalty and its amount).

Regulations 13 to 17 concern reviews by HMRC of penalty decisions, including reviews out of time.

Regulations 18 and 19 make further provision concerning appeals.

Regulation 20 makes general provision about the service of documents.

The Schedule lists the preferential trade arrangements to which regulation 3 applies.

An Impact Assessment has not been prepared for this instrument because it does not meet the financial threshold above which such an assessment is required.