Consultation outcome

Draft legislation: the Fulfilment Businesses (Approval Scheme) Regulations 2018

This consultation has concluded

Download the full outcome

The Fulfilment Businesses Approval Scheme Regulations 2018 - consultation response

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The Fulfilment Businesses Regulations 2018

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The Finance (No. 2) Act 2017, Part 3 (Appointed Days) Regulations 2018

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Detail of outcome

As a result of the responses to this consultation, the government has been able to better understand the impact on business of administering the scheme.

Taking account of the comments that have been received, the government has modified some aspects of the scheme to minimise the impact on legitimate businesses.

Main components of the compliance regime remain to ensure the scheme is effective and stays robust. HMRC will address some other concerns when it sets out the detail of the scheme in guidance.

The consultation response and the regulations have been published with a tax information and impact note.

You can read:

  • the consultation response
  • The Fulfilment Businesses Regulations 2018
  • The Finance (No.2) Act 2017, Part 3 (Appointed Days) Regulations 2018

Original consultation

Summary

This technical consultation seeks comments on the draft statutory instrument for the Fulfilment House Due Diligence Scheme.

This consultation ran from
to

Consultation description

At Budget 2016, the government announced that it would introduce the Fulfilment House Due Diligence Scheme (FHDDS) from April 2018. The scheme applies to businesses that store any goods imported from outside the EU for or on behalf of someone outside the EU.

Following a public consultation in summer 2016, primary legislation introducing the scheme is currently under consideration by parliament as part of the Finance (No 2) Bill 2017.

To complete the legislative framework for the scheme, a statutory instrument is required.

The Fulfilment Business (Approval Scheme) Regulations 2018 set out in detail the application process, obligations of third country goods fulfilment businesses and penalties.

This technical consultation seeks comments from stakeholders on the draft statutory instrument. In particular, we seek a better understanding of:

a) The impact on fulfilment businesses in applying the obligations of the scheme, including record-keeping requirements

b) Whether the provisions for group registrations in Part 5 will be beneficial to group companies

c) The impact of the scheme on small and micro businesses

This is of interest to businesses in the warehousing, storage, fulfilment, imported goods and transport sectors, as well as those involved in e-commerce.

Send any comments about this technical consultation by 15 December 2017 to email: indirecttax.projectteam@hmrc.gsi.gov.uk . Mark your email ‘FHDDS’.

Guidance on the Fulfilment House Due Diligence Scheme will be available on GOV.UK soon.

Documents

Published 23 October 2017
Last updated 8 March 2018 + show all updates
  1. Published the government response to the consultation and the 2 statutory instruments that were required to implement the detailed framework of the scheme.
  2. First published.