Guidance

Notice to Traders 67/23 - Imports of Garlic from China under Statutory Instrument No.2020/1432

Published 24 July 2023

Introduction

This notice explains how the rules are applied to this quota and how to apply for a licence. It also advises you of the quantity available for the period 1 September 2023 to 31 May 2024. Details of the quantity are outlined in Annex 1.

The application period

You may submit your application for a licence between 1 August 2023 and 5pm on 7 August 2023.

It is your responsibility to check that the application and all additional documentation is correct at the time of submission.

Note: We will reject any applications, securities or proof of trade received after 5pm on 7 August 2023.

Proof of trade

If this is your first application in the new quota year you will need to provide proof that you have imported at least 25 tonnes of fresh Garlic during each of the two periods:

• 1 March 2021 – 28 February 2022
• 1 March 2022 – 28 February 2023

You must provide a schedule giving details of:

• the licence number (if applicable);
• the date(s) of import;
• the quantity imported; and
• the import entry number.

You no longer have to supply endorsed copies of C88/CDS declarations.

Reference quantity

Your application will be based on a reference quantity. The reference quantity is the average quantity of fresh garlic imported in each of the two periods:

• 1 March 2021 – 28 February 2022
• 1 March 2022 – 28 February 2023

In the case of merged companies, you can combine the reference quantities of the companies forming the merger subject to satisfactory evidence being provided to RPA. Please see Annex III for procedures relating to merging companies.

Supporting documents

In addition to the above requirements, you must be established and registered for VAT in the UK. You must provide us with a copy of your current VAT registration certificate.

Declaration of Independence

You must provide a declaration of independence with the first application of the quota period which must contain:

• a declaration that you are not linked with any other person applying for the same tariff quota; or
• if you are linked with another person applying for the same order number, a declaration that identifies that linked person and evidence that you regularly engage in substantial economic activities with other third parties.

Please see Annex II for specific requirements.

Licence applications

Your application submitted in any sub-period must not exceed 25% of your average reference quantity.

In box 8, the country of origin:

• you must enter ‘China’ and state ‘Yes’ as compulsory;

In box 15, description:

• you must state ‘Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled: Garlic;

In box 20, special particulars:

• you must state ‘Statutory Instrument 2020 No. 1432’ and Order Number as ’05.4105’.

You must not lodge more than one import licence application for the same quota order number in the same application period.

Note: If you lodge more than one application for the same quota order number, all of your applications will be rejected.

Licence security

Applications must be accompanied by a security of £60 per tonne.

In box 11 you should state:

• the amount of security expressed in UKP (£);

• the type of security, for example ‘block guarantee’, ‘cash’ or ‘single transaction guarantee’; and

• the trader number of the block guarantee holder if you are using another trader’s block guarantee.

Licence validity

Licences will be valid from 1 September 2023 until 31 May 2024.

Your licence will have a 5% upward tolerance. However, the reduction in duty will only be valid for the quantities shown in sections 17 and 18 of your licence.

As licences will only be valid for imports into the UK, your licence will be issued electronically. We no longer issue paper import licences.

Authority

You can find details of the arrangements in Statutory Instrument 2020 No. 1432. You can obtain copies from Stationery Office bookshops and accredited agents, or order from the Stationery Office website.

You can also access Statutory Instruments electronically by visiting the UK’s Legislation website. The RPA is not responsible for the accuracy or completeness of the Legislation website. Whilst every care has been taken in producing this guidance, the Statutory Instrument as published is definitive.

Enquiries

If you have any questions about this notice, please contact the Trader team on:

Telephone helpline number – 03300 416 500 (Option 1)

Email address – trader@rpa.gov.uk

Our postal address is:

Import Licensing Team
Rural Payments Agency
Lancaster House
Hampshire Court
Newcastle Business Park
Newcastle Upon Tyne
NE4 7YH

Annex 1

Tariff quota opened for imports of garlic from China falling within CN code 0703 2000

Origin	Order Number	Second sub period (September to November)	Third sub period (December to February)	Fourth sub period (March to May)
China	05.4105	2,531,761kgs	2,531,750kgs	2,531,750kgs

Annex 2

Declaration of Independence

An applicant is linked with another person if the applicant;

(a) Has close business links with that person,

(b) Has family ties with that person, or

(c) Has an important business relationship with that person.

A person (A) has close business links with another person (B) if;

(i) B is a parent undertaking of A;

(ii) B is a subsidiary undertaking of A;

(iii) B is a parent undertaking of a subsidiary undertaking of A;

(iv) B is a subsidiary undertaking of a parent undertaking of A;

(v) B owns or controls 25% or more of the voting rights or capital of A; or

(vi) A own or controls 25% or more of the voting rights or capital of B,

For the purposes of the above, “subsidiary undertaking” and “parent undertaking” have the meanings given in section 1162 of the Companies Act 2006( a), read with Schedule 7 to that Act;

Having ‘family ties’ with another applicant means that;

• (i) The applicants are spouses or civil partners, or are living together as spouses or as if they were civil partners, or
• (ii) ii. The applicant is the brother, sister, parent, child or grandchild of another applicant. ‘Important business relationship’ includes a relationship where;
• (iii) i. The applicants are employer and employee,
• (iv) ii. The applicants are partners in a partnership, or officers or directors in the same undertaking.
• (v) ‘Substantial economic activities’ means activities carried out by the applicant relating to the production, distribution or consumption of goods and services, which are not carried out for the sole purpose of applying for quotas.

Annex 3

Merger Process

Declaration of Independence

This quota will require a declaration of independence to be provided to support your application for a licence. A template for the declaration of independence can be found at Annex 4.

The declaration must contain:

• a declaration that the applicant is not linked with any other person applying for the same tariff quota; or
• if the applicant is linked with another person applying for the same tariff quota, a declaration that identifies that linked person and evidence that the applicant regularly engages in substantial economic activities with other third parties.

Please see Annex 2 of this Notice for further information.

If the applicants are linked, and do not perform substantial economic activities, the linked companies will need to merge in order to comply with the declaration of independence.

The reference quantity of the ongoing company will be established by combining the reference quantities of the companies forming the merger subject to satisfactory evidence being submitted to RPA.

Evidence of a merger

As different arrangements can apply to mergers it is not possible to provide prescriptive guidance so you may wish to take specialist legal advice. You should make a commercial decision regarding when the merger should take place, based on the circumstances of your company.

Evidence may be in the form of:

• A solicitor’s /accountant’s letter confirming the merger and effective date
• Signed copies of special resolution
• Deed of sale including transfer of assets and liabilities.

At the latest, evidence of the merger must be provided before you submit your licence application.

After the effective date of the merger, the merged companies must not submit applications for quota licences. Following the merger, it will be expected that the merged companies will be formally dissolved and evidence to that effect provided to the RPA.

Transfer of licences following a company merger

You will need to make a written request to the RPA for any extant licences in the name of the merged companies to be transferred into the name of the ongoing company.