Draft Customs Safety, Security and Economic Operators Registration and Identification (Amendment etc.) (EU Exit) Regulations 2020

Abena Oppong-Asare Excerpts

Monday 23rd November 2020 General Committees

[Abena Oppong-Asare (Erith and Thamesmead) (Lab)]

On behalf of the shadow Treasury team, I welcome this opportunity to address this draft statutory instrument. I should also like to pass on the apologies of my colleague the shadow Financial Secretary to the Treasury, my hon. Friend the Member for Ealing North (James Murray). He has not been attending Parliament during the covid-19 outbreak for medical reasons, although he and I have discussed this statutory instrument in detail before today’s sitting.

The Opposition recognise that the UK has left the EU and very much support the Government in ensuring as smooth an end to the transition period as possible on 31 December. However, we have concerns about three issues in the draft instrument, on which I would welcome a response from the Minister. As he just mentioned, the Union customs code is the overarching legislative framework for customs, adhered to by all EU member states and the UK during the transition period. The code’s registration requirements were due to be incorporated into UK law at the end of the transition period, with amendments made by the Customs (Economic Operators Registration and Identification) (Amendment) (EU Exit) Regulations 2019. However, as the explanatory memorandum to the draft instrument makes clear, the necessary amendment to the Union customs code power to require businesses to register with a customs authority for other legislation was omitted from the regulations. We understand that the draft instrument corrects that error, revokes the previous regulations and ensures that there is no change in the UK’s registration powers after the end of the transition period.

Although it is welcome that the error was identified and, we hope, corrected in time, how can the Financial Secretary be confident that the Government have not made any other such errors, particularly given the scale of the necessary preparations for the end of the transition period? I would be grateful if he explained with references to specific processes that may be in place how he is making sure that any such errors are identified and corrected in time.

Secondly, as the Financial Secretary said, the draft instrument introduces a six-month temporary waiver on entry summary declarations for goods from the end of the transition period. It would therefore run from January to June 2021. The explanatory memorandum explicitly asserts that that is to mitigate the impact on readiness that the covid-19 pandemic has had on the logistics industry. However, the original statutory instrument, which the draft instrument intends to replace, also envisaged a six-month waiver from March to October 2019. Although we recognise that situations then and now are not directly comparable for a number of reasons, that raises questions about whether six months is a reasonable period for the situation we face now. I therefore ask the Financial Secretary to make clear today why the six-month waiver is needed. Assuming that he now considers covid to be the contributing factor, how can he be confident, if the six-month waiver was needed to deal with the process pre-covid, that six months will be enough now, given the additional effects of covid on the situation?

The draft instrument changes the deadline for when declarations need to be submitted for short sea journeys to reflect the fact that goods coming into and going out of the UK will come into contact with a customs border much more quickly after the end of the transition period. To achieve that, a number of changes will have to be made. They include allowing declarations to be submitted up to two hours before arrival or departure. The period is currently longer—in some cases, up to 24 hours. We understand and appreciate that the change seeks to avoid congestion as a result of late changes to the transportation of goods, and it seems to make sense in principle. However, the explanatory memorandum notes that HMRC will need to put processes and procedures in place so that entry summary and pre-departure declarations are submitted within the relevant timescales.

We are very conscious that HMRC is subject to job cuts and reorganisation and will have a significant amount of work in the coming months, not only assisting with the end of the transition period, but, realistically, also managing many of the Government’s covid support schemes. How can the Financial Secretary therefore be confident that HMRC will have the capacity to put in place the processes and procedures that the draft instrument envisages?

Thank you again, Mr Stringer, for the opportunity to raise concerns with the Financial Secretary about the draft instrument. As I said at the beginning of my speech, we recognise that the UK has left the EU, and we very much support any steps that the Government are taking to ensure that the ending of the transition period on 31 December is as smooth as possible. However, I would welcome a detailed response from the Financial Secretary to the concerns that I have set out.