Explanatory note

These Regulations are made under the Taxation (Cross-border Trade) Act 2018 (c. 22).

Regulation 2 amends the Customs Tariff (Establishment) (EU Exit) Regulations 2020 (S.I. 2020/1430) to refer to a revised “Tariff of the United Kingdom” document. The new version of this document liberalises tariffs on five chemical commodity codes to realign with changes made by the EU. These changes achieve this by absorbing the five chemical commodity codes into one new code to which a 0% tariff applies. The new version also includes technical amendments to update the commodity code structure, descriptions and some additional nomenclature changes, and updates to commodity codes in the legal notes, to reflect changes by the EU to its legal notes which are to be deleted and replaced on 1st January 2025.

Regulation 3 amends the table in Schedule 1 to the Customs Tariff (Preferential Trade Arrangements) Regulations 2020 (S.I. 2020/1457) to give effect to updated versions of the Preferential Tariff reference documents and Origin reference documents applicable in respect of preferential trade arrangements with various countries or territories. The Preferential Tariff reference documents update commodity codes, update quota volumes in accordance with the terms of the arrangement, and correct errors. The Preferential Tariff reference documents for Canada, Chile, and Iceland and Norway, include amendments to clarify where certain World Trade Organisation (WTO) quotas are managed jointly with preferential tariff quotas. The Origin reference document for the Eastern and Southern Africa States is amended to increase the origin quota for preserved tuna and tuna loins, to give effect to a Joint Committee Decision dated 14th October 2024 as agreed between the United Kingdom and the Eastern and Southern Africa States. The Origin reference document for the European Union is updated to give effect to a Partnership Council Decision between the United Kingdom and the European Union dated 5th November 2024 which transposed the product-specific rules of origin under the Trade and Cooperation Agreement to the updated HS 2022 nomenclature.

Regulation 4 amends the Customs (Tariff and Miscellaneous Amendments) (No. 3) Regulations 2024 (S.I. 2024/1005) to update references to the preferential tariff reference document applicable in respect of the preferential trading arrangements between the United Kingdom and the Socialist Republic of Viet Nam. The reference document has been revised to reflect technical changes and updates.

Regulation 5 amends the definition of “Suspensions of Import Duty Rates Document” in regulation 2 of the Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020 (S.I. 2020/1435) to replace the Suspensions of Import Duty Rates Document with a new version of that document. This document has been revised to extend the suspension of tariffs on certain goods and make technical commodity code changes.

Regulation 6 amends the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 (S.I. 2018/1249) to refer to a revised “Authorised Use: Eligible Goods and Authorised Uses” document.

Regulation 7 amends the Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1431) to refer to a revised “Authorised Use: Eligible goods and rates” document. The new versions of these documents amend Table 2: Goods used by, or on behalf of, the UK armed forces by adding a heading code 8806 - Unmanned aircraft. The effect of this new heading will result in a reduction of duty being paid for other goods that are imported to be incorporated/fitted to unmanned aircraft that would otherwise be liable to a higher rate of duty if they were imported on their own.

An Impact Assessment has not been prepared for this instrument as it largely maintains the position of existing legislation, which was covered by an overarching Tax Information and Impact Note published earlier this year: https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.