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The Free Zone Regulations 1991

S.I. 1991/2727 · Made 4 December 1991

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

CUSTOMS AND EXCISE

Made 4th December 1991

Laid before Parliament 11th December 1991

Coming into force 1st January 1992

The Commissioners of Customs and Excise, being a Department designated for the purposes of section 2(2) of the European Communities Act 1972f1 in relation to customs matters of the European Communitiesf2, in exercise of the powers conferred upon them by the said section 2(2), and of all other powers enabling them in that behalf, hereby make the following Regulations:

Annotations to the whole text

Footnotes

f1

1972 c. 68.

f2

S.I. 1977/980.

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3Repeals
  4. 4Amendments
  5. 5Amendments
  6. 6Offences, penalty and forfeiture
  7. 7Supplementary
  8. Signature
  9. Schedule RELEVANT COMMUNITY PROVISIONS
  10. Explanatory note

1Citation and commencement

These Regulations may be cited as the Free Zone Regulations 1991 and shall come into force on 1st January 1992.

2Interpretation

In these Regulations–

  • “the Act” means the Customs and Excise Management Act 1979f1;

  • “the customs and excise Acts” has the same meaning as in section 1(1) of the Act;

  • “relevant Community provision” means any provision of a Community Regulation specified in the first and second columns of the Schedule.

3Repeals

–

(1)

Subject to paragraph (2) below, the following sections of the Act are hereby repealed–

  • section 100B (free zone regulations),

  • section 100C (free zone goods: customs duties, etc), except for subsection (4),

  • section 100D (free zone regulations: supplemental), and

  • section 100E (control of trading in free zones)f1

(2)

This regulation shall not have effect in relation to the application of the following provisions of the Act by virtue of section 24(1) of the Value Added Tax Act 1983f2–

  • section 100B (free zone regulations),

  • section 100C(1) (free zone goods) insofar as the subsection purports to apply to goods chargeable with customs duty, and

  • section 100C(3) (scope of free zone regulations).

4Amendments

In section 1(1) of the Act (interpretation)–

(a)

in the definition of “free zone goods”, for “100B(2)” there shall be substituted “100C(4)(d)”; and

(b)

the definition of “free zone regulations” shall be omitted.

5Amendments

In section 100C(4) of the Act (free zone regulations)–

(a)

for the preamble there shall be substituted “The Commissioners, with respect to free zone goods or the movement of goods into any free zone, may be regulations make provision–”; and

(b)

at the end there shall be inserted the following paragraph–

“(d)

references in this Act to “free zone goods” are references to goods which are within a free zone.”.

6Offences, penalty and forfeiture

In the event of any contravention or failure to comply with–

(a)

any relevant Community provision; or

(b)

any requirement or condition imposed by or under any such provision; or

(c)

any undertaking given pursuant to any such provision or requirement; or

(d)

any regulation made under section 100B of the Act in its continued application by virtue of regulation 3(2) above; or

(e)

any regulation made under section 100C(4) of the Act,

the person responsible for the contravention or failure shall be liable on summary conviction to a penalty of level 3 on the standard scalef1together with a penalty of £40 for each day on which the contravention or failure continues and any goods in respect of which the offence was committed shall be liable to forfeiture.

7Supplementary

(1)

Section 139 of and Schedule 3 to the Actf1(detention, seizure and condemnation of goods) shall apply to any goods where liable to forfeiture under regulation 6 above as if the goods were liable to forfeiture under the customs and excise Acts.

(2)

Sections 144 to 148 and 150 to 155 of the Actf2(proceedings for offences, mitigation of penalties, proof and other matters) shall apply in relation to offences and penalties under regulation 6 above and proceedings for such offences or for condemnation of any thing as being forfeited under that regulation as they apply in relation to offences and penalties and proceedings for offences or for condemnation under the customs and excise Acts.

Signature

Alexander W. Russell

Commissioner of Customs and Excise

New King’s Beam House 22 Upper Ground London SE1 9PJ

4th December 1991

RELEVANT COMMUNITY PROVISIONS

(1)(2)(3)
Community RegulationRelevant ProvisionSubject Matter of Provision
Council Regulation (EEC) No. 2504/88f1Article 2–paragraph 4Construction of a building needs authorization
Articles 7, 8 and 9Activities need authorization
Article 11–paragraph 1Stock accounts to be kept in approved form and at disposal of customs authority; goods to be identified and movements recorded
Article 11–paragraph 2Transhipment documents to be kept at disposal of customs authority
Commission Regulation (EEC) NO. 2562/90f2Article 7Advance notification of activities
Article 11Activities commenced before approval of stock accounts
Article 13–paragraph 2Entry of goods into premises to be recorded immediately in stock accounts
Article 24 Removal of goods from premises to be recorded immediately in stock accounts
Article 27–paragraph 1Prefinanced goods to be presented and declaration lodged
Article 27–paragraph 2Form of declaration
Article 29Permitted forms of handling for prefinanced goods

Explanatory note

(This note is not part of the Regulations)

From 1st January 1992 the administration of free zones will be governed by Council Regulation (EEC) No. 2504/88 and Commission Regulation (EEC) No. 2562/90. The provisions of the Customs and Excise Management Act 1979 which are superseded by that legislation are repealed by these Regulations.

Free zones will continue to be designated under section 100A of the 1979 Act in statutory instruments.

These Regulations provide that the effect of certain of the repealed provisions will be retained in connection with the application of value added tax to goods in free zones.

Penalties and forfeiture are provided for contravention of the requirements of the EC Regulations.