Customs (Amendment) (EU Exit) Regulations 2022 Debate

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Department: HM Treasury
Abena Oppong-Asare Portrait Abena Oppong-Asare (Erith and Thamesmead) (Lab)
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It is a pleasure to serve under your chairship, Mr Sharma.

I thank the Minister for her explanation of the regulations. Although they are technical in nature, this is clearly an important area and I have a number of questions. As she set out, the regulations will make changes to customs legislation applying to goods moving between Great Britain and Northern Ireland. The Opposition recognise the significant challenges that businesses in Northern Ireland face when importing goods from Great Britain and, conversely, the challenges that businesses in Great Britain face when selling into Northern Ireland.

We have urged the Government to negotiate properly with the EU to ensure that the protocol works for the people of Northern Ireland and people across the UK. Although progress has been made recently, a number of issues remain. For example, businesses and political parties in Northern Ireland have been urging the Government for months to negotiate a veterinary agreement that lowers barriers and brings long-term benefits to the people of Northern Ireland. People’s jobs and livelihoods depend on the Government solving such problems as soon as possible.

Let me turn to the specific measures. I recognise that most of the amendments to the Customs and Excise Management Act 1979 largely tidy up the legislation to ensure that it reflects current customs processes. I also note that the explanatory memorandum states that the changes do not impact on the unfettered access of qualifying Northern Ireland goods that move to the rest of the UK. To double check, will the Minister confirm that businesses importing into Northern Ireland will not face any further trade barriers as a result of the changes?

The provision in paragraph (3) of regulation 2 allows HMRC to require a security and a guarantee in order to release imported goods in certain circumstances. It is sensible that goods can be released pending a future customs declaration, to prevent them from piling up in warehouses or, in the case of perishable goods, becoming entirely unusable. But why is that change being introduced now? Why has that procedure not been possible until this point? Have businesses suffered because of a failure to bring in the necessary legislative changes until now, given that is more than two years since the end of the transition period? Have the Government consulted with relevant businesses about the impact of the policy? If so, will the Minister tell us whether businesses expressed any concerns about the operation of the securities process?

It will be useful to hear from the Minister how long, on average, importers will have to wait until HMRC has calculated the right amount of duty to be paid. Finally, will the Minister say a little more about the new review and appeal procedure in relation to a HMRC decision to require a security? What will be the process for businesses if they wish to appeal?