Customs Bill: Legislating for the UK’s future customs, VAT and excise regimes

In the August 2017 policy paper, Future customs arrangements: a future partnership paper, the United Kingdom government set out its proposals for an ambitious new customs relationship with the EU and confirmed that, regardless of the outcome of negotiations, the UK would need new customs legislation in place by March 2019. Later in 2017, the UK government would bring a ‘Customs Bill’ before parliament*.

This White Paper published in October 2017 explained the government’s approach to the bill. It set out how the current customs, VAT and excise regimes operate for cross border transactions, why the bill was necessary, and what the bill would contain.

The UK Government also published on the 9 October 2017 a separate White Paper Preparing for our future UK trade policy.

* The Customs Bill was introduced on the 20 November 2017. Note that its formal title was Taxation (Cross-border Trade) Bill 2017-19.

The Customs Bill would give the UK the power to:

+ charge customs duty on goods; define how goods will be classified , set and vary the rates of customs duty and any quotas
+ amend the VAT and excise regimes so that they can function effectively post-exit
+ set out the rules governing how HMRC will collect and enforce the taxes and duties owed
+ implement tax-related elements of the UK’s future trade policy.

Background
Following the 8 June 2017 General Election in the United Kingdom the State Opening of Parliament took place on the 21 June 2017. This marked the formal start of the parliamentary year and included the Queen's Speech which set out the government’s agenda for the 2017-19 session, outlining proposed policies and legislation.

The programme was dominated by proposed legislation dealing with the United Kingdom's planned leaving of the European Union. Eight of the twenty seven bills to be introduced were connected with Brexit.

+ European Union (Withdrawal) Bill (introduced on the 13 July 2017)
+ Customs Bill
+ Trade Bill
+ Immigration Bill
+ Fisheries Bill
+ Agriculture Bill
+ Nuclear Safeguards Bill
+ International Sanctions Bill

For more details on these bills click here.

• Primary Source

UK: Parliament: House of Lords: Library: Library Briefing, 01.12.17: Future of UK Trade and Customs Policy http://researchbriefings.files.parliament.uk/documents/LLN-2017-0089/LLN-2017-0089.pdf

UK: GOV.UK: Department for International Trade (et al): Press Release, 07.11.17: New legislation to prepare UK for future trade and customs policy https://www.gov.uk/government/news/new-legislation-to-prepare-uk-for-future-trade-and-customs-policy

ESO: In Focus: Brexit - The United Kingdom and the European Union http://www.europeansources.info/record/brexit-the-united-kingdom-and-the-european-union/

UK: GOV.UK: Department for International Trade (et al): Press Release, 09.10.17: Government sets out vision for post EU trade and customs policy https://www.gov.uk/government/news/government-sets-out-vision-for-post-eu-trade-and-customs-policy

The Guardian, 09.10.17: UK ministers 'deeply pessimistic' about Brexit talks progress https://www.theguardian.com/politics/2017/oct/09/government-to-publish-white-papers-on-post-brexit-customs-and-trade

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