Civil penalties for contraventions of free zone requirements
Information about civil penalties for contraventions of free zone requirements.
A civil penalty regime is in place for breaching certain requirements under regulations applicable to operating and using a freeport customs site. This was introduced as part of the Free Zones (Customs, Excise and VAT) Regulations 2021, at Regulation 6.
In general, these regulations cover requirements concerning authorisation, notification, and the control of activities and goods in a customs site.
Contravention of each of the free zone requirements carries a civil penalty of £2500 for each occurrence. The following requirements are as set out in the schedule to the Customs (Contravention of a Relevant Rule) Regulations 2003:
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under Regulation 3, 18E and 18F of The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018:
- a person must not carry out a specified activity in a free zone related to goods declared for a free zone procedure unless they are authorised to do so
- the prohibition on carrying out any industrial, commercial or service activity in a free zone unless HMRC have been given prior notification
- the prohibition or restriction imposed by HMRC on carrying out an industrial, service or commercial activity in a free zone
- a responsible authority must take reasonable steps to ensure that no person carries out an activity involving the keeping of goods subject to a special customs procedure in a free zone if sub-paragraphs i, ii or iii of Regulation 18E.8.a applies
- a responsible authority must take reasonable steps to ensure that no person brings goods into a free zone of a description specified in a notice published under Regulation 18C.2
- a responsible authority must take reasonable steps to ensure that no person removes goods from a free zone in breach of regulation 18F.1
- the requirement relating to the control of goods subject to a special customs procedure within a free zone that is imposed by HMRC
- a person must not cause or permit goods to be removed from a free zone unless the conditions provided for in Regulation 18F.1 notification requirements are met
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any condition or requirement contained in a designation order
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under Regulation 59B.1B, 2 and 3 of The Customs (Export) (EU Exit) Regulations 2019 — an onward export notification in respect of goods to which paragraph 1B applies must be given to HMRC by a person mentioned in paragraph 3 before the goods are exported