Regulation 31 Valuation of goods regarded as chargeable goodsI1

(1)

For the purposes of section 36(7) of the Act, the value of the goods regarded as chargeable goods is to be the greater of—

(a)

zero; and

(b)

an amount equal to—

A - B

where—

A is the value of the processed goods at the time of acceptance of the customs declaration of those goods for the free-circulation procedure; and

B is the statistical value of the goods at the time when they were released to an outward processing procedure.

F1(1A)

This paragraph applies where—

(a)

goods are released to an outward processing procedure;

(b)

the processing of the goods under the procedure consists in anything other than their repair by any person without charge;

(c)

the goods are imported in accordance with the procedure;

(d)

there is a breach of—

(i)

the terms of the declaration for the procedure; or

(ii)

any other requirement in relation to the procedure; and

(e)

an HMRC officer is satisfied that the person who caused the breach did not do so for the purposes of—

(i)

avoiding, or enabling any other person to avoid, any Customs obligation that would have applied if the breach had not occurred;

(ii)

preventing a liability to import duty or charges being incurred by any person; or

(iii)

preventing the application of any non-tariff trade policy measure or agricultural policy measure.

(1B)

Where paragraph (1A) applies, the value of the goods is to be reduced in accordance with paragraph (1).

(2)

For the purposes of regulation 29(6)(a) F2or (7)(ba), the value of the replacement goods is to be the greater of—

(a)

zero; and

(b)

an amount equal to—

C - D

where—

C is the value of the replacement goods at the time of acceptance of the customs declaration of those goods for the free-circulation procedure; and

D is the statistical value of the domestic goods which the replacement goods replaced at the time when the domestic goods were released to an outward processing procedure.

(3)

In this regulation “the statistical value” has the meaning given in Article 4 of Commission Regulation (EU) No 113/2010 of 9 February 2010 implementing Regulation (EC) No 471/2009 of the European Parliament and of the Council on Community statistics relating to external trade with non-member countries.

Annotations

Textual amendments

F1: Reg. 31(1A)(1B) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 7(7)(a); S.I. 2020/1643, reg. 2, Sch.
F2: Words in reg. 31(2) inserted (31.12.2020) by The Taxation (Cross-border Trade) (Miscellaneous Provisions) (EU Exit) Regulations 2019 (S.I. 2019/486), regs. 1(3), 7(7)(b); S.I. 2020/1643, reg. 2, Sch.

Commencement

I1: Reg. 31 in force at 31.12.2020 by S.I. 2020/1643, reg. 2, Sch.