Parliamentary.ai

Overview

This bill establishes a new UK customs and tax system independent from the EU, covering import and export duties, value-added tax (VAT), and excise duties. It aims to replace EU legislation with a UK-specific framework while maintaining international trade obligations.

Description

The bill is divided into six parts. Part 1 details import duty, including the charge, goods classification, liability determination, and the responsible parties. It also outlines the customs tariff, preferential rates for certain countries, quota systems, and tariff suspensions. Different methods for determining the value and origin of goods are also specified, and provisions are made for reliefs and administration. Part 2 grants the Treasury the power to levy export duties. Part 3 addresses VAT, abolishing acquisition VAT from other EU states and extending import VAT coverage. It also deals with the repeal of EU VAT laws and related amendments. Part 4 focuses on excise duties, particularly those on postal packets from abroad, and provides general regulatory powers over excise duties. Part 5 provides further power to amend VAT or duties of customs or excise in relation to the UK's withdrawal from the EU. Finally, Part 6 contains final provisions including a prohibition on tax collection for foreign countries without reciprocity, ensuring a single UK customs territory, and outlining consequential and transitional provisions.

Government Spending

The bill's impact on government spending is not explicitly stated in the provided text. The introduction of new import and export duties, however, is likely to generate increased revenue for the UK government. Conversely, the potential need for new administrative processes and enforcement mechanisms could lead to increased spending in certain areas.

Groups Affected

• Importers and Exporters: Will be directly affected by the new import and export duty regimes, needing to comply with new regulations and potentially facing higher or lower taxes.
• Businesses: The changes to VAT and excise duties will impact businesses' tax liabilities and administrative burdens.
• Consumers: May experience changes in prices of imported goods due to the new import duties.
• Government Agencies (HMRC, Trade Remedies Authority): Will have new responsibilities in administering and enforcing the new system.
• Developing Countries: The bill's trade preference schemes could benefit eligible developing countries by offering lower import duty rates.