24/11/2017
New Bill establishes framework for future UK-EU customs relationship (UK)
A new Bill that will enable the government to establish a UK customs regime that is independent of the EU and ensure VAT and excise law continues to operate effectively whatever the outcome of Brexit negotiations has been introduced in parliament.
As the current rules governing customs are mainly in EU law that is directly applicable in the UK, the Bill is essential to introduce the new domestic legislation that will replace it.
It will allow the government to
- charge and vary customs duty on goods
- specify which goods are subject to what duty
- set preferential or additional duties in certain circumstances (eg to secure the benefits of global free trade while protecting domestic industries; to provide necessary and proportionate safeguards against unfair trade)
- support developing countries by offering preferential treatment
- ensure that VAT and excise legislation function effectively upon EU exit
The Bill follows plans set out in the Customs Bill White Paper * and does not pre-suppose any particular outcome from the on-going negotiations. This gives government the flexibility to act according to whatever delivers the greatest economic advantage to the UK and to achieve the following three strategic objectives
- ensuring UK-EU trade is as frictionless as possible
- avoiding a hard border between Ireland and Northern Ireland
- establishing an independent international trade policy
In addition to providing access to the Bill itself, ‘Taxation (Cross-border Trade) Bill’ links to 6 related documents comprising
- explanatory notes
- notes of resolution
- delegated powers note
- impact assessment
- trade remedies – impact assessment
- unilateral remedies – impact assessment
* ‘White papers set out UK trade and customs policies post-Brexit’ (CPA News; 10 October 2017)
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