Explanatory note

Regulations 2 and 3 make amendments relating to the rate of import duty applicable to goods originating from Bhutan. Regulation 2 removes Bhutan from the list of least developed countries in Part 2 of Schedule 3 to the Taxation (Cross-border Trade) Act 2018 (c. 22) (“the Act”) and adds it to the list of other eligible developing countries in Part 3 of Schedule 3 to the Act.

Regulation 3 adds Bhutan to the list of countries eligible for enhanced preferences in the Trade Preference Scheme (Developing Countries Trading Scheme) Regulations 2023 (S.I. 2023/561).

Regulation 4 amends the definition of “the authorised use document” in regulation 32(2) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 (S.I. 2018/1249) to refer to a new version of that document. The new version of that document creates 28 new commodity codes for a variety of goods predominantly covering the machinery and electrical chapters of the document, removes four commodity codes and changes the description on two commodity codes. It also makes a number of corrections by adding two commodity codes that were inadvertently omitted from the previous version of the document, and removing one commodity code that was included in error. Two formatting changes are also applied as part of a simplification process to make the reference documents more user-friendly.

Regulation 5 amends the definition of “Tariff of the United Kingdom” document in regulation 1(2) of the Customs Tariff (Establishment) (EU Exit) Regulations 2020 (S.I. 2020/1430) to refer to a new version of that document. The new version of that document updates the commodity code structure and descriptions in the UK Tariff. It also removes two commodity codes in relation to the steel trade.

Regulation 6 amends the definition of “authorised use rates document” in regulation 20(4) of the Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1431) to refer to a new version of that document. The new version of that document creates 26 new commodity codes for goods that are also covered by the new authorised use document substituted by regulation 4 above, removes two commodity codes and changes the description on the same 2 commodity codes as the new authorised use document substituted by regulation 4 above. Two formatting changes are also applied as part of a simplification process to make the reference documents more user-friendly.

Regulation 7 amends the definition of “Steel Quota Table” in regulation 2(1) of the Customs (Tariff Quotas) (EU Exit) Regulations 2020 (S.I. 2020/1432) to refer to a new version of that Table. The new Table has been revised to remove two commodity codes from the scope of the steel quotas.

Regulation 8 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 refer to a new version of that document. The new version has been revised to make technical commodity code changes and correct minor errors in existing suspensions.

By virtue of section 32A of the Act (as inserted by section 75 of the Finance Act 2022 (c. 3)), where regulations made under any of sections 8 to 19 of the Act make provision by reference to a document, this is a reference to the document as modified from time to time, or as replaced, by notice by the appropriate authority: https://www.gov.uk/government/publications/notices-made-under-s32a-of-the-taxation-cross-border-trade-act-2018. As updates have been made to the documents referred to in the provisions of this instrument by notice under section 32A of the Act, certain of the version number updates appear as non-sequential in this instrument.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

This instrument maintains the position of existing legislation, which was covered by a Tax Information and Impact Note published on 13th January 2021 and available electronically at: https://www.gov.uk/government/publications/the-uks-integrated-tariff-schedule.