Introduction
Introductory information about the UK Continental Shelf (UKCS) area, UK territorial waters, moving goods between Northern Ireland and the UKCS, and the legislation.
The UK Continental Shelf (UKCS) industry has developed offshore oil and gas fields making it a major contributor to UK energy supply. More recently the UKCS has developed other energy resources such as wind and tidal power generation. These installations must be serviced and maintained from the UK mainland with vessels and small aircraft moving goods such as food, equipment, spare parts and waste produced by the activity.
In legislation, an installation means an artificial island, a fixed or floating installation or any other structure (Regulation 26G(5) of the Customs (Import Duty) (EU Exit) Regulations 2018). Therefore, an installation can be an oil or gas rig or platform, wind turbine (or group of wind turbines), a tidal barrage or tidal stream generators.
The UKCS is the area of regional waters outside the UK territorial waters, and therefore outside of the UK’s customs territory, where the country has mineral rights. This includes part of the North Sea, the North Atlantic, the Irish Sea and the English Channel and is in an area defined by Order of His Majesty in Council under the Continental Shelf Act 1964.
Goods moving between this area and Great Britain (England, Scotland and Wales) are treated as an export or an import for customs purposes. Similarly, energy that is produced on the UKCS is treated as an import.
The UK territorial waters are the area of water up to 12 nautical miles directly away from the UK coastline. Movements of goods between Great Britain and installations within the UK’s territorial waters are not treated as exports or imports as this area is within the UK customs territory.
Goods from outside the UK that are imported for use within the UK territorial waters must be presented to customs and declared to UK free circulation before they are used. Once in UK free circulation, goods can move freely within the mainland and UK territorial waters.
For example, a reel of cable attached to a vessel is imported from the USA to connect a windfarm within 12 nautical miles of the coastline with an Offshore Transmission Operator on the Great Britain coast. Because the cable will be used within the territory of the UK, it must be declared as an import.
Energy that is produced within the UK territorial waters is not treated as an import.
Goods moving between Northern Ireland and the UKCS must comply with the requirements of the Union Customs Code and will be treated as imports or exports.
If goods are for sale to or end use by a consumer located in the UK (including the area within 12 nautical miles of the UK), the goods would be eligible to move ‘not at risk’ under UKIMS and benefit from the new arrangements under the Windsor Framework.
If the goods are moving from Great Britain, through Northern Ireland to a country outside the UK (including the UKCS) they are not eligible to move under UKIMS, meaning they cannot benefit from the new arrangements and a full customs declaration will be required and you may have to pay the applicable rate of EU duty subject to any waivers or reliefs.
The UKCS declaration by conduct process is not available for goods moving between Northern Ireland and the UKCS.
Check if you can bring goods into Northern Ireland from Great Britain without paying duty.
Great Britain and UKCS movements
Chargeable goods that are imported or exported to or from Great Britain must be declared to customs as set out in section 3 of the Taxation (Cross-border Trade) Act 2018 and Regulation 6 of the Customs (Export) (EU Exit) Regulations 2019.
Regulation 26G of the Customs (Import Duty) (EU Exit) Regulations 2018 sets out the alternative declaration process known as the UK continental shelf simplified import procedure.
Regulation 24D of the Customs (Export) (EU Exit) Regulations 2019 sets out the alternative declaration process known as the UK continental shelf simplified export procedure.
These procedures are designed specifically for goods moving between Great Britain and the UKCS.
Regulation 26H of the Customs (Import Duty) (EU Exit) Regulations 2018 sets out the eligibility criteria.
Northern Ireland and UKCS movements
Article 158 of the Union Customs Code (Regulation EU 952/2013) requires a customs declaration to be made for goods that are intended to be placed under a customs procedure in the customs territory of the Union.
Article 263 of the Union Customs Code provides that a pre-departure declaration must be made for goods to be taken out of the customs territory of the Union. This may be in the form of a customs declaration, a re-export declaration or an exit summary declaration.