R1. Moving assets to the UK

IMPORT DUTY

Imported goods charged unless declared for special procedure

- Charge on importation

Charge

- Import duty charged on importation of chargeable goods (TCTA, s.1).

Domestic goods not chargeable

- Goods are chargeable unless they are domestic goods (TCTA s.2).

- Domestic goods means goods wholly obtained in the UK (s.33).

-Or goods subject to a chargeable customs procedure (s.33).

- Goods cease to be domestic goods once exported subject to exceptions (s.33(3), (4)).

- Exceptions are in Import Duty Regs, r.102

- Goods in the UK are presumed to be domestic goods unless the contrary is shown (s.33(7)).

- Goods that have been imported are presumed not to be domestic goods (Import Duty Regs r.103).

Amount of charge

- See TCTA 2018, s.7 onwards.

Valuation of goods

- See Import Duty Regs, r.107 onwards.

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- Goods to be presented to Customs and declared for procedure on import

Requirement for presentation

- Goods must be presented to Customs on import (TCTA 2018, Sch 1, para 1(1)).

- Failure to present where required to do so incurs immediate import liability (TCTA 2018, s.5(2)).

- No requirement to present goods where:

- Force majeure (Import Duty Regs, r.5).

- Unloading stores from qualifying vehicle (r.5A).

- Temporary unloading (r.6).

- Goods not unloaded (r.6A).

How to present goods (notification of import)

- Goods are present if (1) lawfully imported; and (2) HMRC are notified of importation in accordance with applicable rules (TCTA s.34).

Method of notification of import

- Form of notification is as specified by HMRC in a notice (Import Duty Regs, r.4).

- Deemed notification where declaration for customs procedure is made orally (Import Duty Regs, r.28) or by conduct (r.29).

Requirement for declaration

- Goods presented must be declared for a customs procedure (TCTA 2018, s.3(1)).

- Declaration in respect of goods must be made within 90 days of presenting goods (TCTA, Sch 1, para 1).

- General rule requires electronic declaration (para 4), but HMRC may permit oral or conduct declarations (para 6).

Declare for a procedure (free circulation or special)

- Goods must be declared for a procedure: either free circulation procedure or a special customs procedure (s.3(3)).

- The procedure determines the time of any liability to import duty being incurred (s.4).

- If no entitlement to make the declaration concerned, liability arises at time of declaration (s.4(3)).

Acceptance of declaration

- If HMRC are satisfied that goods have been presented and a complete customs declaration made, they must notify the declarant and that is treated as acceptance of the declaration (para 11), subject to verification under para 13.

- Declaration is complete even if there are inaccuracies (para 12).

- But HMRC have power to correct (para 14).

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- Declaring for special procedure

Must be authorised to declare goods for special procedure

- A person must not declare goods for certain special procedures unless authorised or approved to do so under the Special Procedure Regs (Special Procedure Regs, r.3(1)).

Deemed application for authorisation when making declaration

- A person declaring goods for a relevant non-transit Part 1 procedure is generally treated as applying for authorisation (Special Procedures Regs, r.4).

Acceptance of declaration deemed to be grant of authorisation

- Where a declaration is treated as an application for authorisation, acceptance of the declaration is treated as grant of authorisation if the eligibility criteria are met (r.8).

- Eligibility criteria (r.9):

(1) Applicant is established in UK except where declaration is for temporary admission procedure or certain other situations (r.9(1)(a)).

(2) HMRC officer is of the opinion that it is possible to exercise control of any goods declared without the effects being disproportionate to the benefit to the applicant.

(3) HMRC officer satisfied that the applicant will exercise proper conduct of the operations necessary to comply with the procedure.

(4) Additional conditions for customs warehouses and free-zones.

Limits on who may be authorised

- Temporary admission procedure - generally applicant must be established outside the UK (r.36).

Declaration for procedure by conduct

- Temporary admission procedure may be declared by conduct in cases within r.27.

Acceptance of declaration made by conduct

- Is treated as occurring on completing the conduct (Import Duty Regs, r.29(5)).

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- Obligation to make declaration extinguished if goods exported within 90 days

- Obligation to make customs declaration is extinguished if the goods are exported from the UK within 90 days in accordance with applicable export provisions (TCTA 2018, Sch 1, para 1(4)).

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- Customs control of goods

Goods subject to customs control on import

- Goods are subject to control of any HMRC officer as soon as they are imported (para 1(2)).

- May be required to be stored in a particular location (para 1(3)).

Until procedure discharged

- Goods are discharged from free circulation procedure once duty paid/satisfactory payment arrangements + HMRC notify goods are discharged (para 17).

- For other procedures, goods are released to the procedure upon acceptance of the declaration and are discharged in accordance with the terms of that procedure (para 17(7)).

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- Goods liable to forfeiture (failure to present or declare)

Failing to present where required

- If goods are imported and not presented to customs on import, they are liable to forfeiture (TCTA s.5).

- Does not apply if not required to be presented.

No declaration within 90 days of presentation

- If customs declaration not made within 90 days (and obligation not extinguished), goods are liable to forfeiture (TCTA 2018, Sch 1, para 1(5)).

Failing to comply with customs formalities

- CEMA 1979, s.41

Power to detain where officer suspects thing may be liable to forfeiture

- Officer may any thing where they suspect it may be liable to forfeiture (CEMA s.139).

- Duty to give notice of the grounds for detention unless in presence of owner (CEMA, Sch 2A, para 3)

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- Breach of procedure

- Triggers liability to import duty (TCTA s.4(3)(b)).

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R1. Moving assets to the UK

IMPORT DUTY

​

Imported goods charged unless declared for special procedure

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- Charge on importation

- Goods to be presented to Customs and declared for procedure on import

- Declaring for special procedure

- Obligation to make declaration extinguished if goods exported within 90 days

- Customs control of goods

- Goods liable to forfeiture (failure to present or declare)

- Breach of procedure