Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of freeports on job displacement.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
Pre-2012 UK Freeports model was were not well used, in large part because they offered limited only basic customs benefits and were in fixed locations inside ports.
The government has consulted on the introduction of a new Freeport model which will include a wider package of policy measures, including customs measures and tariff benefits, tax reliefs and planning freedoms to boost trade, regenerate deprived communities and promote innovation. The consultation closed on 13 July, and the responses are currently being carefully considered.
The government will ensure all the necessary safeguards are in place to minimise any risk of money laundering and tax evasion and will continue to meet international standards. The government’s consultation response will set out more detail on this, as well as on how any risk of harmful job displacement will be managed.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what lessons his Department has learnt from the previous incarnation of freeports, from 1984 to 2012, that he plans to implement when establishing new freeports.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
Pre-2012 UK Freeports model was were not well used, in large part because they offered limited only basic customs benefits and were in fixed locations inside ports.
The government has consulted on the introduction of a new Freeport model which will include a wider package of policy measures, including customs measures and tariff benefits, tax reliefs and planning freedoms to boost trade, regenerate deprived communities and promote innovation. The consultation closed on 13 July, and the responses are currently being carefully considered.
The government will ensure all the necessary safeguards are in place to minimise any risk of money laundering and tax evasion and will continue to meet international standards. The government’s consultation response will set out more detail on this, as well as on how any risk of harmful job displacement will be managed.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what arrangements have been made through the Border Operating Model to help traders unfamiliar with customs procedures to make entries into their own records.
Answered by Jesse Norman
Traders importing standard goods into Great Britain from the EU between 1 January and 30 June 2021 can make a record in their own commercial records at the point of entry of goods into Great Britain and then follow this with a supplementary declaration which must be submitted to HMRC within six months of the point of import. They will need to record details of the goods in their commercial records, including information such as the classification, value, and weight of the goods. In order to make a delayed supplementary declaration, the importer will need to become authorised to use customs simplified procedures or appoint an agent that is authorised. Further information can be found on GOV.UK: https://www.gov.uk/guidance/declaring-goods-brought-into-great-britain-from-the-eu-from-1-january-2021.
The vast majority of the UK’s rest of world traders use an agent or intermediary to comply with customs formalities and manage their logistics and transport needs. Based on this, the Government expects that intermediaries will play an essential role as the majority of UK businesses trading with the EU will want to use their services to facilitate the import/export process.
The UK has a well-established industry of customs intermediaries which serve British businesses. The sector is varied and made up of a number of different business models including specific customs brokers, freight forwarders and fast parcel operators. HMG has recently announced an additional £50 million of grant scheme support for the sector to increase capacity, in addition to the £34 million of support made available so far.
The £50 million support package will boost the capacity of the customs intermediary sector to help provide businesses with further support ahead of the new processes taking effect from January 2021. Those who currently complete or intend to complete customs declarations, either as an intermediary on behalf of their clients or importer or exporter for their own goods, are able to apply.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made the average time it will take for a frontier location to become a customs approved area.
Answered by Jesse Norman
The time required to become a customs approved area will depend on the unique circumstances of individual locations.
HM Revenue and Customs and Border Force are working to ensure that appropriate approvals will be in place by the end of the transition period.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many (a) ports, (b) roll-on/roll-off locations, (c) rail terminals and (d) airports are customs approved areas.
Answered by Jesse Norman
The number of frontier locations currently approved as customs approved areas to receive or dispatch freight from outside of the UK are:
77 | Ports (including the 21 RoRo listed locations) |
179 | Wharves |
6 | Rail Terminals |
37 | Customs & Excise (C&E) Designated Airports |
10 | Non-C&E Designated Airports (including 8 approved to import aircraft not freight) |
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of (a) rail terminals, (b) airports and (c) pipeline operators that require temporary customs approvals.
Answered by Jesse Norman
About 10 rail terminals are expected to require temporary approvals.
Airports that receive or dispatch freight from outside of the UK should already be a customs approved area so will not require temporary customs approvals. Pipeline operators will receive full customs approvals for January 2021.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his timeframe is for publishing information on which border points will be operating a (a) pre-lodgement or (b) temporary storage model for clearing goods entering, leaving or transiting the UK.
Answered by Jesse Norman
Border points are responsible for deciding how they want to ensure customs control requirements are met to meet full customs controls from July 2021. THEY will be able to use a temporary storage model or pre-lodgement model. HMRC are working with border points to help them decide which model is best for them but this is a commercial decision for each to make based on their own unique circumstances.
Where pre-lodgement of declarations may be mandated by legislation, details of those border points will be published in a notice on gov.uk at least 30 days before the legislation comes into force.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what evidence will be required under the proposed Border Operating Model for companies to demonstrate a good compliance record enabling them to defer customs declarations.
Answered by Jesse Norman
The Government’s priority is to keep goods moving and avoid delays at the border. As the customs authority, HMRC will act to ensure that border processes are as smooth as possible, without compromising security. From 1 January 2021 to 30 June 2021 most traders importing non-controlled goods will be able to defer customs declarations for 180 days. Like importers of controlled goods, traders with a poor compliance record will not be allowed to defer declarations and must complete full customs declarations at the time of import.
HMRC is planning a package of activities to support and educate traders on their obligations during this period. HMRC will promote the keeping of good records, which will be crucial in minimising losses to error once supplementary declarations are made. HMRC will also have the power to ask for a trader’s records to check that they have made adequate entries.
HMRC has existing tools in place to tackle non-compliance. These tools include risk-based pre- and post-clearance checks, regular monitoring of high-risk traders and their supply chains and providing education to traders on risks and issues identified. Traders or individuals with a poor compliance history will be contacted by HMRC and will be instructed that they will not be able to defer declarations. The Government will publish further information on what constitutes a poor compliance history soon.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential effect on the adequacy of control over goods entering the UK of the proposed system for deferred declarations in locations without an existing control system.
Answered by Jesse Norman
The Government’s priority is to keep goods moving and avoid delays at the border. As the customs authority, HMRC will act to ensure that border processes are as smooth as possible, without compromising security. From 1 January 2021 to 30 June 2021 most traders importing non-controlled goods will be able to defer customs declarations for 180 days. Like importers of controlled goods, traders with a poor compliance record will not be allowed to defer declarations and must complete full customs declarations at the time of import.
HMRC is planning a package of activities to support and educate traders on their obligations during this period. HMRC will promote the keeping of good records, which will be crucial in minimising losses to error once supplementary declarations are made. HMRC will also have the power to ask for a trader’s records to check that they have made adequate entries.
HMRC has existing tools in place to tackle non-compliance. These tools include risk-based pre- and post-clearance checks, regular monitoring of high-risk traders and their supply chains and providing education to traders on risks and issues identified. Traders or individuals with a poor compliance history will be contacted by HMRC and will be instructed that they will not be able to defer declarations. The Government will publish further information on what constitutes a poor compliance history soon.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of traders who qualify for a Duty Deferment Account.
Answered by Jesse Norman
On 17 July 2020, HMRC held 13,026 live Duty Deferment Accounts (DDAs).