Customs
Subject to the provision in the protocol regarding termination and changes, The EU / UK customs union the Annex shall apply to goods:
- produced in the customs territory of the European Union or the United Kingdom customs territory, including those wholly or partially obtained or produced from products coming from third countries which are in free circulation in the customs territory of the European Union or the United Kingdom customs territory; or
- coming from third countries and in free circulation in the customs territory of the European Union or the United Kingdom customs territory;
- obtained or produced in the customs territory of the European Union or the United Kingdom customs territory, in the manufacture of which products coming from third countries and not in free circulation either in the customs territory of the European Union or the United Kingdom customs territory were used, under the condition that the import formalities have been complied with and any customs duties or charges having an equivalent effect which are payable on those goods or on the third-country products used in their manufacture have been levied in the exporting part of the single customs territory.
The term “wholly obtained” shall have the same meaning in the United Kingdom customs territory as it does in the customs territory of the European Union.
Goods from third countries shall be considered to be in free circulation in the customs territory of the European Union or the United Kingdom customs territory if the import formalities have been complied with and any customs duties or charges having equivalent effect which are payable have been levied by the European Union or by the United Kingdom in their respective part of the single customs territory, and if they have not benefitted from a total or partial reimbursement of such duties or charges.
As regards goods obtained or produced in the customs territory of the European Union or the United Kingdom customs territory, in the manufacture of which products coming from third countries and not in free circulation either in the customs territory of the European Union or the United Kingdom customs territory were used, but which are not lawfully in free circulation (by reason of completion of import requirements and payment of duties that may apply), the importing part of the single customs territory shall apply the customs legislation applying to goods from third countries.
Trade between the parts of the single customs territory (EU and UK)
Customs duties on imports and exports, and any charges having equivalent effect shall be prohibited between the parts of the single customs territory. This prohibition shall also apply to customs duties of a fiscal nature. Charges for the performance of customs controls or any other application of the customs legislation between the parts of the single customs territory shall be considered having equivalent effect to customs duties.
Charges may however be imposed or costs recovered where specific services are rendered by the customs authorities, in particular the following:
- attendance, where requested, by customs staff outside official office hours or at premises other than customs premises;
- analyses or expert reports on goods and postal fees for the return of goods to an applicant, particularly in respect of decisions taken or information provided upon application;
- the examination or sampling of goods for verification purposes, or the destruction of goods, where costs other than the cost of using customs staff are involved;
- exceptional control measures, where these are necessary due to the nature of the goods or to a potential risk.
The National treatment principle (no discrimination) , freedom of transit and the prohibition on quantitative in the General Agreement on Tariffs and Trade 1994 (“GATT 1994”) shall be incorporated into and be made part of the Protocol and shall apply between the parts of the single customs territory mutatis mutandis.
The rules set out in the Annex shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security, the protection of health and life of humans, animals or plants, the protection of national treasures possessing artistic, historic or archaeological value, the protection of industrial or commercial property. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the parts of the single customs territory.
Nothing in the Annex shall be construed:
- to require the European Union or the United Kingdom to furnish or allow access to any information the disclosure of which it considers contrary to its essential security interests; or
- to prevent the European Union or the United Kingdom from taking any action which it considers necessary for the protection of its essential security interests:
- connected with the production of or trade in arms, munitions or war material or relating to such production of or trade in other goods and materials as is carried out directly or indirectly for the purpose of provisioning a military establishment;
- relating to fissionable and fusionable materials or the materials from which they are derived; or
- taken in time of war or other emergency in international relations; or
- to prevent the European Union or the United Kingdom from taking any action for the purpose of maintaining international peace and security.
Customs Tariff applicable to trade with third countries
The United Kingdom shall align the tariffs and rules applicable in its customs territory with:
- the European Union’s Common Customs Tariff;
- the European Union’s rules on the origin of goods; and
- the European Union’s rules on the value of goods for customs purposes.
Under no circumstances may the United Kingdom:
- apply to its customs territory a customs tariff which is lower than the Common Customs Tariff for any good or import from any third country; or
- apply or grant in its customs territory tariff preferences to any good on the basis of rules of origin that are different from those governing the granting of such preferences to the same good by the European Union in its customs territory.
The United Kingdom may not, without prior agreement in the Joint Committee, apply or grant in its customs territory any quotas, tariff-rate quotas or duty suspensions.
The United Kingdom shall be informed of any decision taken by the European Union to amend the Common Customs Tariff, to suspend or reintroduce duties and any decision concerning quotas, tariff-rate quotas or duty suspensions in sufficient time for it to align itself with that decision. If necessary, consultations may be held in the Joint Committee.
Commercial policy
The single customs territory shall comply with the relevant provisions of GATT 1994 for the purpose of being a customs union so as to be excepted from the most favoured nation and non-discrimination principle as regards third states. To this end, the United Kingdom shall harmonise the commercial policy applicable to its customs territory with the common commercial policy of the European Union to the extent necessary to give effect to the Protocol and by applying regulations of commerce other than duties, which are substantially the same as those of the European Union.
The United Kingdom shall ensure that, for the products covered by the temporary EU/UK customs union, its Schedules of Concessions are fully aligned with those of the European Union, and commitments on tariff-rate quotas are compatible with those of the European Union and comply with the provisions 3 of the Annex. The European Union and the United Kingdom agree to cooperate on WTO matters on the apportionment of WTO tariff-rate quotas and to the extent necessary for the functioning of the single customs territory.
The European Union’s trade defence regime, as well as the European Union’s Generalised Scheme of Preferences (“GSP”), shall cover both parts of the single customs territory. The European Union shall consult the United Kingdom on any trade defence measures or actions under the GSP regime which it considers taking. At least 6 months before the end of the transition period, the Joint Committee shall set up the procedures for the application of this provision.
Administrative cooperation
In addition to the specific cooperation provided for in Annex 3 to the Protocol, the administrative authorities of the European Union, including its Member States, and of the United Kingdom responsible for implementing the provisions of the Annex shall provide each other with mutual administrative assistance so as to ensure compliance with those provisions for trade in goods between the parts of the single customs territory or with third countries.
At least 6 months before the end of the transition period, the Joint Committee shall elaborate the appropriate provisions on mutual administrative assistance including as regards the recovery of debts.
Specific remedies
In case of non-compliance by the United Kingdom with the customs obligations set out above with respect to goods and products from third countries, the European Union may, where it considers this necessary to protect the integrity of the single market, impose tariffs or other restrictions on the movement of the relevant goods into or out of the customs territory of the European Union. These goods shall not be considered as being within the scope of the Annex.
Where the European Union has made a finding, based on objective information, of the existence of an error in the United Kingdom customs territory in the implementation of Annex 3, where this error leads to consequences in terms of import duties, the European Union shall request the Joint Committee to determine the appropriate measures with a view to resolving the situation.
The Withdrawal Agreement dispute resolution provisions shall apply to any dispute relating to the application of this Article.
Application of Customs Codes
The European Union Customs Code and any other measures and controls which are applicable in the customs territory of the European Union, and the United Kingdom Taxation (Cross-border Trade) Act 2018 and its implementing provisions, as well as other relevant legislation, which are applicable in the customs territory of the United Kingdom, shall apply in trade in goods between the two parts of the single customs territory under the conditions laid down in the Protocol and the Annex.
Formalities
For the purpose of the status of third-country goods incorporated into EU or UK goods, the import formalities shall be considered as having been complied with in the exporting part of the single customs territory by the validation of the document necessary to prove that a good is within the scope of the relevant provision of Annex 2.
The validation referred to in the las paragraph shall cause the customs duties or charges having equivalent effect, which are payable on the goods concerned or on the third-country products used in their manufacture to be levied in the exporting part of the single customs territory. It shall also give rise to the application of the commercial policy measures to which the goods may be subject.
The moment when the customs duties or charges having equivalent effect above shall be levied, shall be deemed to be the moment when the competent customs authorities accept the export declaration relating to the goods in question.
The debtor shall be the declarant. In the event of indirect representation, the person on whose behalf the declaration is made shall also be a debtor.
Documentary evidence
Proof that a good is within the scope of Annex 2 to the Protocol (the single customs territory), shall be provided by documentary evidence issued at the exporter’s request by the customs authorities in the parts of the single customs territory.
The documentary evidence shall be the A. UK. movement certificate. The European Union shall draw up the specimen of the A. UK. movement certificate and explanatory notes and inform the Joint Committee thereof. The use of that specimen shall be mandatory.
The A. UK. Movement certificate may be used only where:
- the goods have not, after exportation and prior to being declared for importation, been altered, transformed in any way or subjected to operations other than to preserve them in good condition or than adding or affixing marks, labels, seals or any other documentation to ensure compliance with specific domestic requirements of the importing part of the single customs territory;
- the goods have been stored or exhibited in a third country provided that the goods remain under customs supervision in that third country.
The splitting of consignments may take place in a third country if it is carried out by the exporter or under its responsibility and provided that they remain under customs supervision in that third country.
The requirement shall be considered to be complied with unless the customs authorities in the importing part of the single customs territory have reason to believe the contrary. In such cases, the customs authorities may request the declarant to provide evidence of compliance, which may be given by any means.
An A. UK. movement certificate shall be endorsed by the customs authorities in the exporting part of the single customs territory when goods to which it relates are exported. It shall be made available to the exporter as soon as the actual exportation has been effected or ensured.
An A. UK. movement certificate may be endorsed only where it can serve as the documentary evidence required for the purpose of determining that a good is within the scope of the EU/ UK single customs territory.
The exporter applying for the issue of an A. UK. movement certificate shall be prepared to submit at any time, at the request of the customs authorities in the exporting part of the single customs territory where the A. UK. movement certificate is issued, all appropriate documents proving the status of the products concerned as well as the fulfilment of the other requirements of the Protocol.
The issuing customs authorities shall take any steps necessary to verify the status of the products and the fulfilment of the other requirements of the Protocol and of the Annex. For this purpose, they shall have the right to call for any reasonable evidence and to carry out any control considered appropriate. The issuing customs authorities shall also ensure that the certificates are duly completed. In particular, they shall check whether the space reserved for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent additions.
An A. UK. movement certificate must be submitted, within four months of the date of issue by the customs authorities in the exporting part of the single customs territory, to the customs authorities in the importing part of the single customs territory.
A UK. movement certificates submitted to the customs authorities in the importing part of the single customs territory after the final date for presentation specified in paragraph 9 may be accepted where the failure to submit these documents by the final date set is due to exceptional circumstances.
In other cases of belated presentation, the customs authorities in the importing part of the single customs territory shall accept A. UK. movement certificates where the related goods were presented to those authorities before the said final date.
UK. movement certificates issued retrospectively
UK. movement certificates may exceptionally be issued after the actual exportation has been effected or ensured of the goods to which it relates if:
- it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances; or
- it is demonstrated to the satisfaction of the customs authorities that an A. UK. movement certificate was issued but was not accepted at importation for technical reasons.
For the implementation of the above provisions, the exporter must indicate in his application the place and date of exportation of the products to which the A. UK. movement certificate relates, and state the reasons for his request.
The customs authorities may issue an A. UK. movement certificate retrospectively only where the customs authorities are satisfied a certificate has been applied for in accordance with the provisions of this Article.
Submission of A. UK. movement certificates
Movement certificates shall be submitted to customs authorities in the importing part of the single customs territory in accordance with the procedures laid down in that part of the single customs territory. These authorities may require a translation of a certificate. They may also require the import declaration to be accompanied by a statement from the importer to the effect that the goods are within the scope of Annex to the Protocol.
The discovery of slight discrepancies between the statements made in the A.UK. movement certificates and those made in the document submitted to the customs authorities for the purpose of carrying out the import formalities for the goods shall not ipso facto render the certificates null and void if it is duly established that the certificates correspond to the goods presented.
Obvious formal errors such as typing errors on A. UK. movement certificates should not cause these certificates to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in these certificates.
Replacement of A. UK. movement certificates
When goods are placed under the control of a customs office in either part of the single customs territory, it shall be possible to replace the original A. UK. movement certificate by one or more A. UK. movement certificates for the purpose of sending all or some of these goods elsewhere within the single customs territory. The replacement A. UK. movement certificate(s) shall be issued by the customs office under whose control the products are placed.
Administrative cooperation
The customs authorities of the Member States of the European Union and of United Kingdom shall provide each other, through the European Commission, with specimen impressions of stamps used in their customs offices for the issue of A. UK. movement certificates and with the addresses of the customs authorities responsible for verifying those certificates.
In order to ensure the proper application of the Protocol, the European Union and United Kingdom shall assist each other, through the competent customs administrations, in checking the authenticity of A. UK. movement certificates and the correctness of the information given in them.
Verification of A. UK. movement certificates
Subsequent verifications of A. UK. movement certificates shall be carried out at random or whenever the customs authorities in the importing part of the single customs territory have reasonable doubts as to the authenticity of the certificates, the status of the products concerned or the fulfilment of the other requirements of the Protocol and of its Annexes, providing such verification is sought no later than 3 years after the issuing of the A. UK. movement certificate by the customs authorities in the exporting part of the single customs territory.
For the purposes of implementing the above provisions , the customs authorities in the importing part of the single customs territory shall send the A. UK. movement certificate to the customs authorities in the exporting part of the single customs territory, and the invoice, if it has been submitted, or a copy of these documents, giving, where appropriate, the reasons for the enquiry. Any documents and information obtained suggesting that the information given on the A.UK movement certificate is incorrect shall be forwarded in support of the request for verification.
The verification shall be carried out by the customs authorities in the exporting part of the single customs territory. For this purpose, they shall have the right to call for any reasonable evidence and to carry out any inspection of the exporter’s accounts or any other check considered appropriate.
If the customs authorities in the importing part of the single customs territory decide to refuse for the products concerned, the treatment provided for in Annex 2 while awaiting the results of the verification, release of the products shall be offered to the importer subject to any precautionary measures judged necessary.
The customs authorities requesting the verification shall be informed of the results of this verification within a maximum of 10 months. These results must indicate clearly whether the documents are authentic and whether the products concerned were within the scope of Annex 2 to the Protocol, , and fulfil the other requirements of the Protocol and its Annexes.
If, in cases of reasonable doubt, there is no reply within 10 months or if the reply does not contain sufficient information to determine the authenticity of the document in question or the true status of the product, the requesting customs authorities shall, except in exceptional circumstances, refuse the treatment provided for in the Protocol and its Annexes.
Disputes relating to the verification procedure
Where disputes arise in relation to the verification procedures of Article 9 which cannot be settled between the customs authorities requesting a verification and the customs authorities responsible for carrying out this verification, or where they raise a question as to the interpretation of the Annex, they shall be submitted to the Joint Committee.
At the request of the European Union or the United Kingdom, consultations shall be hold in the Joint Committee within a period of 90 days from the date of submission with a view to resolving those differences. The period for consultation may be extended on a case by case basis by mutual written agreement. After this period the customs authority of the importing part of the single customs territory can make its decision on the status of the goods concerned.
In all cases, disputes between the importer and the customs authorities of the importing country shall be settled under the legislation of the said country.
Penalties
Penalties shall be imposed on any person who draws up, or causes to be drawn up, a document which contains incorrect information for the purpose of obtaining the treatment provided for in the Protocol and Annex 2 to the Protocol. Such penalties shall be effective, proportionate and dissuasive.
Provisions concerning the goods brought by travellers
Provided that they are not intended for commercial use, goods brought by travellers from one part of the single customs territory to the other part of the single customs territory shall benefit from the treatment provided for in Annex 2 without being the subject of a movement certificate when they are declared as goods within the scope of EU/UK single customs territory, , and there is no doubt as to the accuracy of the declaration.
The Joint Committee shall regularly discuss the implementation of this Article, and where appropriate, adopt the necessary measures for its proper application.
Postal consignments
Postal consignments (including postal packages) shall benefit from the treatment provided for in Annex 2 without being the subject of a movement provided there is no indication on the packing or on the accompanying documents that the goods contained therein are not within the scope of the UK / EU customs territory. This indication consists of a label to be affixed in all cases of this kind by the competent authorities of the exporting part of the single customs territory.
The European Union shall draw up the specimen of the label referred to in the first subparagraph and inform the Joint Committee thereof. The use of the label based on that specimen shall be mandatory.
The Joint Committee shall regularly discuss the implementation of this Article, and where appropriate, adopt the necessary measures for its proper application.
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