Publication of Taxation (Cross-border Trade) Bill

Tuesday 21st November 2017

The Government has published a Cross Border Trade Bill (see link below) - this sets the overall scene in terms of the UKs customs landscape post Brexit. Although it does not presuppose what may happen in terms of the UK/EU negotiation, it makes it clear that the UK wants to continue operating the procedures and simplifications currently enjoyed.

Although it had been thought that, for example, the requirement for guarantees for Special Procedures would be withdrawn, the Bill allows for regulations to require guarantees - this may be a case of protecting HMRCs position rather than indicating the Customs Comprehensive Guarantees for potential duty will continue, but it might be worth lobbying HMRC to ensure they are aware of your views.

The potential for "self-assessment" is also mentioned - albeit in passing.

"Thank you for your input and engagement so far on the UK's future customs arrangement with the EU, through numerous roundtables and discussions we've had.

I wanted to let you know that the government has today published the Taxation (Cross-border Trade) Bill. The Bill provides for a future customs regime, though it does not presuppose the outcome of the negotiations. As the government set out in both the Future Partnership Paper and White Paper, in assessing the options for the UK's future customs relationship with the EU (and therefore how the government uses the powers in the Customs Bill), the government will be guided by what delivers the greatest economic advantage to the UK, and by three strategic objectives: ensuring UK-EU trade is as frictionless as possible; avoiding a hard border between Ireland and Northern Ireland; and, establishing an independent international trade policy. As also set out in the White Paper, in response to feedback from stakeholders, and in order to provide continuity for business, the customs legislation will mostly be based on the Union Customs Code.

We believe that businesses from across the UK have a key role to play in the policymaking process and we are keen to continue the positive engagement we have already had with business on customs issues. HM Treasury and HMRC will continue to engage with stakeholders across the business community during the passage of the Bill and as negotiations on the terms of the withdrawal of the EU (and on the future partnership with the EU) progress.

Kind Regards,

Customs Stakeholder Engagement | Her Majesty's Treasury | 1 Horse Guards Road, London, SW1A 2HQ |"