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Section 1: Tariff quotas-general information Section 2: Tariff quotas-administration 8.1.1 Introduction This Part explains briefly what tariff quotas are, how they are administered, how information about them is set out in Volume 2 and where more detail can be obtained. 8.1.2 Definition Tariff Quotas are a form of (EU) preference under which limited amounts of certain goods may be admitted to free circulation at reduced or nil rates of customs duty and/or CAP charges. The limit may be expressed in units of weight, volume, quantity or value. 8.1.3 National allocation Quotas are set for the whole of the EU, and claims are granted on a first come first served basis. Most quotas are controlled entirely by the European Commission. 8.1.4 Status Under article 308c of Commission Regulation 2454/93 (Customs Code Implementing Provisions) a Tariff Quota shall be considered, after the first allocation, as non-critical (i.e. Open) in cases where: A tariff quota for the same products & origins, opened in each of the last two years for a minimum period of six months, was not exhausted before the last working day of the seventh month of its quota period during those two years; &, the initial volume of the quota is not less than each of those of the last two years. In all other cases the quotas must be considered to be Critical. In cases where the quota is, Critical or an Open Quota has become Critical Goods eligible to Tariff Quota relief may only be released against security for any duty legally due outside of the quota. Security may be given either by cash deposit or guarantee. 8.1.5 Exhausted quotas The full quota allocation has been utilised, the appropriate nonquota duty rate is payable. When a quota has exhausted information will be sent by facsimile to quota scheduling points. Please also note that some quotas are seasonal, the quota rate cannot be claimed for consignments imported outside the quota period. 8.1.6 Proof of origin Some quotas are restricted to goods from particular countries or groups of countries. When this is the case, claimants must produce the appropriate certificate of origin or movement certificate. For some quotas extra documents may need to be produced. Details of documentary proof required are included in Volume 2 at the end of the relevant Chapter. 8.1.7 Import licensing requirements Tariff quotas should not be confused with import licensing quotas, which also exist for certain categories of goods. The former permit importation at preferential rates of duty up to the quota limits shown in Volume 2; thereafter, importation may continue, but at the appropriate non-quota rate of duty. Import licensing quotas, however, establish strict limits on the total amounts of certain categories of goods which may be imported from specific countries over a given period, regardless of whether full or preferential rates of duty are applicable during that period. For further information on import licensing requirements, see Part 3 of this Volume. 8.2.1 Trade policy Requests for information on industrial tariff quotas, other than balance enquiries, should be made to the Department of Trade and Industry. The DTI decides whether new requests to open a quota or requests to increase the level of an existing quota should be forwarded to the European Commission. The DTI publishes details of new requests for quotas submitted by Member States to the European Commission. The information appears on the DTI website at: https://www.gov.uk/government/organisations/department-forbusiness-innovation-skills Further information about tariff quotas can be found on this same website or alternatively you can contact: Grant Mosedale Department for Business, Innovation and Skills Trade Defence Unit Bay 4141 1 Victoria Street London SW1H 0ET Tel. 020 7215 5044. Fax 020 7215 2234 e-mail grant.mosedalewbis.gov.uk also Phil Walker Tel. 020 7215 5319. Fax 020 7215 2234 e-mail phil.walkerwbis.gsi.gov.uk 8.2.2 Control of current Tariff quotas Responsibility for administering claims to quota rests with: HM Revenue and Customs Tariff Quota Management Team 10th Floor South East Alexander House 21 Victoria Avenue Southend-on-Sea Essex SS99 1AA Email queries regarding tariff quotas can be sent to tariff.managementwhmrc.gsi.gov.uk Please note that up to the minute information cannot be given about quota balances. HM Revenue and Customs can therefore give no guarantee that a claim will be successful even though the balance might seem plentiful at the time of enquiry. Importers must take this into account when assessing import costs. Information on current quota balances is also available on the European Commission website: http://ec.europa.eu/taxation customs/dds2/taric/ quota consultation.jsp?lang%en Please note that the quota information on the Internet appears under the Commission s Order Number. The CTQU at Southend will help you if you do not have this information. 8.2.3 Acceptance of claims Quota claims are dealt with on a first come, first served basis, by reference to the date of acceptance of the customs entry. 8.2.4 Banded Period and Banded Quotas To ensure equity, acceptance of a quota request by Customs on 1, 2 or 3 January shall be regarded as acceptance on 3 January. 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circumstances all claims lodged before a deadline previously announced by HM Revenue and Customs are considered to have been presented simultaneously. If the volume of the claims made within that period exceeds the quota available, allocation of the relief is made on a pro-rata basis. Similarly if two or more claims are made on the date of exhaustion of a non-banded quota the relief is also allocated pro-rata. 8.2.5 Claiming quota relief It is a legal requirement that a formal claim for quota relief must be lodged, failure to do so may result in loss of relief. The claim should be made at the time the goods are declared to Revenue and Customs for release to free circulation & any documents or other evidence required to substantiate the relief is available or has been complied with. In cases where documents or evidence are not available or a request has, for whatever reason, not been made. Belated claims may be made against the quota providing the quota has not in the meantime already exhausted. Any belated claim must be made in writing to the National Duty Repayment Centre, Building 22 Priory Court, St Johns Road, Dover CT17 9SH, the date of claim shall be the date of release to free circulation. In any event claims must not be sent direct from the importer or agent to the CTQU. Such claims will be returned immediately to sender. 8.2.6 Procedure at import Details of how to claim quota relief when entering a transaction on the Single Administrative Document (Form C.88) are in Volume 3, Parts 3 and 4. Section 3: Quota information in Volume 2 8.3.1 Detail on the tariff line Goods eligible for quota relief are individually described and coded in the Schedule in Volume 2. They can be identified by the abbreviation TQ in column 3. The presence of a quota line must not however be taken as implying that the quota is still open. The latest known position can be obtained by contacting the CTQU in Southend. 8.3.2 Additional information It is not practicable to include all information relating to a quota within the tariff line in the Schedule. Supplementary information has therefore been included at the end of each Chapter. Detail shown there against the relevant commodity code includes: 8.3.2.1 Quota order number This is the reference which identifies the tariff quota for claims purposes. It must be inserted on the customs import declaration in Box 39. 8.3.2.2 Quota rate The reduced rate is shown here. Where no rate is shown the quota rate is Nil. 8.3.2.3 Quota period The opening and closing dates for the quota are shown here when the quota period is other than the full calendar year. 8.3.2.4 Quota units Normally, but not always, the same unit of quantity or value as for duty purposes. The details must be entered on the Single Administrative Document (Form C.88) according to the procedure set out in Volume 3. 8.3.2.5 Country of origin Where a quota is restricted to particular countries or groups of countries, details are included here. 8.3.2.6 Documentary Evidence Details of documents required to support origin will be shown here. Where the quota applies to all non-union countries no evidence of origin is required. EUR Movement Certificate can be in the form of a valid invoice declaration. 8.3.3 Quotas for certain hand-made products Certain goods of various tariff classifications up to a total annual value of 1,200,000 Euro originating in twenty three countries may be eligible for duty-free admission into the Union. The countries are: Argentina, Bangladesh, Bolivia, Brazil, Chile, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Iran, Laos, Malaysia, Mexico, Pakistan, Panama, Paraguay, Peru, Philippines, Sri Lanka, Thailand and Uruguay. These products are referred to in Volume 2 as the group of 23. The items covered are shown in the Schedule to Volume 2 and are indicated by Hand-made against each tariff heading concerned. Further details can be obtained from the CTQU. In order to be eligible the goods must: be cottage industry products made entirely by hand, be cottage industry products which have the character of products made by hand, or be garments, or other textile products obtained manually from fabrics woven on looms operated solely by hand or foot and essentially sewn by hand or by sewing-machines operated solely by hand or foot. Access to these quotas shall be restricted to products accompanied by a certificate of authenticity recognised by the relevant Union authorities certifying that the goods in question are hand-made and recognised as hand-made by HM Revenue and Customs. 8.3.4 Quotas for certain handloom fabrics Certain fabrics of various tariff classifications originating in twelve countries may be eligible for duty-free entry admission into the Union. The countries are: Argentina, Bangladesh, Brazil, El Salvador, Gluatemala, Honduras, India, Indonesia, Laos, Pakistan, Sri Lanka, Thailand and Uruguay. These products are referred to in Volume 2 as the group of 12. The items covered are shown in the Schedule in Volume 2 and are indicated by the words Manufactured on Hand-looms against each tariff heading concerned. Further details can be obtained from CTQU. In order to be eligible goods must: be woven on looms moved exclusively by hand or foot, be covered by a certificate of manufacture in a proscribed form given by a recognised authority in the country of origin, carry (at the end of each piece of fabric) either a stamp approved by the recognised authority or a single approved lead seal, and be carried direct from the country of manufacture to the Union. Access to these quotas shall be restricted to products accompanied by a certificate of authenticity recognised by the relevant Union authorities certifying that the goods in question are manufactured on hand-looms and recognised as such by HM Revenue and Customs. 1.4.18/3 70
8.3.5 Reimported textiles processed in Switzerland An EU tariff quota (092501) provides for the duty-free reimportation of certain textile yarns and fabrics under Tariff Chapters 50 to 60. These goods must have been exported from the EU to undergo certain specific processes in Switzerland and be returned. The UK has no automatic share in this quota but drawings may be made by the CTQU from the EU reserve as required. The yearly quota period is from 1 September to 31 August. Applications to claim this quota must be made in writing to the CTQU before importation. Section 4: The ceiling system 8.4.1 Introduction The EU may fix quantitative ceiling levels limiting the total quantity of certain goods which may be imported into the EU at preferential rates under Association Agreements between the Union and Poland, Hungary, Bulgaria, Romania, the Czech and Slovak Republics and Slovenia during a calendar year. In some instances, these ceilings are applied only to goods originating in certain countries, states or territories. 8.4.6 Belated claims Where preference is withdrawn from a specified date, a belated claim or claim supported by evidence produced on or after that date cannot be allowed. Section 5: Further information 8.5.1 Published information A fuller explanation of the Tariff quota system is given in Notice 375. Importers are urged to obtain and read a copy if they wish to take advantage of this tariff concession. 8.5.2 Written and telephone enquiries Advice concerning quotas can be obtained from local Revenue and Customs (but not VAT) Offices. Alternatively, guidance is available from Revenue and Customs headquarters or from the Department of Trade and Industry as appropriate at the addresses shown in earlier paragraphs. 8.4.2 Administration Ceilings are not pre-allocated to member states. They are administered and monitored on an EU-wide basis by the European Commission in Brussels. WHEN IMPORTATIONS INTO THE EU REACH THE CEILING LEVEL, ANY MEMBER STATE MAY REQUEST REIMPOSITION OF THE FULL NON-PREFERENTIAL RATE OF DUTY EITHER IMMEDIATELY OR AT ANY TIME THEREAFTER. THE COMMISSION MAY ALSO ACT TO REIMPOSE DUTY. Otherwise the full rate of duty remains suspended and the preferential rate continues even though the ceiling level is exceeded. 8.4.3 Reimposition of duty The European Commission is required to give member states three days notice of reimposition of duty. Please note, however, that as this period can include week-ends and public holidays (the latter are not standardised within the EU) duty can in effect be reimposed virtually without warning. Reimposition of the full rate of duty does not affect the entitlement of the goods to a reduced or zero rate under other preference arrangements. For details of other preference arrangements available to certain countries see Part 7 of this Volume. N 8.4.4 Information about reimposition Immediately upon receipt of an advice from the European Commission, all customs staff at ports and airports are notified of the effective date of duty reimposition. More up-to-date information may be obtained from any Customs office or from Central Tariff Quotas Unit (CTQU), 10th Floor East, Alexander House, 21 Victoria Avenue, Southend-on-Sea, Essex SS99 1AA. Please refer to Volume 1 Part 7 for details. 8.4.5 Implications for importers/agents Importers and/or agents intending to enter goods under preference subject to a ceiling should consult Customs notice boards where information on duty reimposition is displayed and make enquiries at any Customs Office. They should not assume that the preferential rate of duty will be available. It is the responsibility of the importer to ensure that entries are correct and if, at a later date, checks disclose that any claim to preference is invalid, HM Revenue and Customs are required by law to demand any duty due, notwithstanding that some considerable time after importation may have elapsed. 1.4.18/3 71
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