The Customs (Miscellaneous Amendments) (No 2) Regulations 2022
Published 13 December 2022
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Who is likely to be affected
Businesses bringing goods into the UK.
General description of the measure
The measure introduces a number of simplifications and easements to customs requirements that apply when goods enter the UK, with a view to supporting UK businesses. It extends the circumstances in which reusable packaging can be declared for customs purposes by making a declaration by a person carrying out specified conduct, such as passing through a ‘green’ lane at a port (a ‘by conduct’ declaration). It also corrects an error in relation to what provisions Value Added Tax (VAT) and excise duty can be relieved under in order for goods to be able to be declared by conduct in some situations.
The measure also ensures that the required notification of importation of goods can be given before goods arrive in the UK, in certain cases where a customs declaration has also been provided in advance.
The measure also clarifies one of the conditions that apply to an authorisation for the use of an inward processing procedure, under which goods can be imported for processing with duty suspended or relieved.
The provisions in this measure apply to movements into or out of Great Britain and Northern Ireland to the extent their application is in accordance with provisions relating to the Protocol on Ireland/Northern Ireland.
Policy objective
To simplify and clarify customs processes and requirements for certain imported goods and formalise temporary easements which should be welcomed by industry.
Background to the measure
Since 1 January 2022, HMRC provided a temporary facilitation to allow notification of importation of goods to be given up to 4 hours before the goods arrive, where a customs declaration has been made in advance. Additionally, HMRC provided a temporary facilitation to allow most unaccompanied reusable packaging to be declared by conduct on import. Changes in this instrument include those intended to formalise these temporary easements in legislation.
No formal consultation has been carried out because most of the changes introduced by this instrument are the consequence of engagement with industry stakeholders and reduce administrative requirements.
Detailed proposal
Operative date
The instrument will take effect from 3 January 2023.
Current law
The Customs (Import Duty) (EU Exit) Regulations 2018 (SI 2018/1248) (import duty regulations) and the Customs (Special Procedures and Outward Processing)(EU Exit) Regulations 2018 (SI 2018/1249) (special procedures regulations) are made under the Taxation (Cross-border Trade) Act 2018 (TCTA).
The import duty regulations include provisions amended by this instrument concerning imported goods destined to be kept in a temporary storage facility before being released to a customs procedure.
Those regulations include provisions setting out cases in which imported goods can be declared for customs purposes orally to an officer of HMRC, or by a person making a ‘by conduct’ declaration.
Those import duty regulations also set out requirements concerning the requirement to notify HMRC of the importation of goods.
The special procedures regulations set out the rules and conditions concerning the use of special customs procedures, including the inward processing procedure.
Proposed revisions
The import duty regulations will be updated to:
- amend the timeframe for when notification of importation can be given, in order to allow this notification to be given prior to the arrival of goods, in certain cases
- extend cases in which imported reusable packaging can be declared for customs purposes with a by conduct declaration
The special procedures regulations will also be updated to clarify one of the conditions (the economic condition) for authorisation to use the inward processing procedure to ensure that the legislation applies as intended.
Summary of impacts
Exchequer impact (£million)
| 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | 2026 to 2027 | 2027 to 2028 |
|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil |
The measure is not expected to have an Exchequer impact.
Economic impact
The measure is not expected to have any significant economic impacts.
Impact on individuals, households and families
There is expected to be no impact on individuals as this measure only affects businesses. The measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
It is not anticipated that there will be impacts for those in groups sharing protected characteristics.
Impact on business including civil society organisations
The measure is expected to simplify the customs processes and declaration process.
These are facilitative changes and are expected to have a negligible impact on businesses.
Some of the changes will provide continuing savings which could include a reduction in driver resource costs as dwell-time at a port will be reduced. Early notification and the subsequent advance notice of HMRC’s risking being known to traders allows them to plan their driver resourcing appropriately, reducing the time that drivers spend at the port waiting for goods to be cleared or inspected. The use of simpler customs declarations for unaccompanied reusable packaging may provide continuing savings for industry that rely on reusable packaging to protect goods during transportation not having to make an electronic declaration.
The measure is not expected to impact civil society organisations.
Although these are facilitative changes customer experience is expected to broadly remain the same as two of the changes formalise existing temporary arrangements and businesses are expecting them to be formalised.
Operational impact (£million) (HMRC or other)
There will be minimal impacts on HMRC, with any resource implications to be subsumed within normal working processes.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure will be kept under review through communication and ongoing stakeholder engagement with trade bodies and other representative businesses.
Further advice
If you have any questions about these changes, please contact Iram Akhtar and Angela Miles by email at: jobshareiramangela@hmrc.gov.uk.
Declaration
The Financial Secretary to the Treasury, Victoria Atkins MP, has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.