Anna Soubry
Main Page: Anna Soubry (The Independent Group for Change - Broxtowe)Department Debates - View all Anna Soubry's debates with the HM Treasury
Monday 16th July 2018
(6 years, 5 months ago)
Commons ChamberRead Full debate Taxation (Cross-border Trade) Act 2018 View all Taxation (Cross-border Trade) Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 16 July 2018 - (16 Jul 2018)
Madam Deputy Speaker (Dame Eleanor Laing)
With this it will be convenient to discuss the following:
New clause 2—EU VAT area and pre-commencement requirements—
“(1) It shall be a negotiating objective of Her Majesty’s Government in negotiations on the matters specified in subsection (2) to maintain the United Kingdom’s participation in the EU VAT Area under the arrangements set out through the Union Customs Code and its delegated and implementing legislation.
(2) Those matters are—
(a) the United Kingdom’s withdrawal from the European Union, and
(b) a permanent agreement with the European Union for a period subsequent to the transitional period after the United Kingdom’s withdrawal from the European Union.
(3) It shall be the duty of the Secretary of State to lay a report before the House of Commons in accordance with either subsection (4) or subsection (5).
(4) A report under this subsection shall be to the effect that the negotiating objective specified in subsection (1) has been achieved.
(5) A report under this subsection shall be to the effect that the negotiating objective specified in subsection (1) has not been achieved.
(6) If a report is laid before the House of Commons in accordance with subsection (4), Part 3 of this Act shall cease to have effect on the day after that day.
(7) No regulations may be made for the commencement of provisions of Part 3 of this Act unless a report is laid before the House of Commons in accordance with subsection (5).”
This new clause establishes a negotiating objective to maintain the UK’s participation in the EU VAT Area and provides for Part 3 of the Act to expire if that objective is met.
New clause 3—Import tariffs under Part 1: restriction—
“(1) No power of the Treasury or of the Secretary of State to impose tariffs under or by virtue of the provisions specified in subsection (2) may be exercised in respect of goods originating from a country that is a Member State of the European Union.
(2) Those provisions are—
(a) section 8 (customs tariff),
(b) section 11 (quotas),
(c) section 13 (dumping of goods, etc),
(d) section 14 (agricultural goods), and
(e) section 15 (international disputes).”
This new clause prevents tariffs being imposed on goods originating from EU Member States.
New clause 4—Import tariffs under Part 1: pegging with EU tariffs—
“(1) In exercising the powers to impose or vary tariffs under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, the level of those tariffs is the same as that imposed in respect of comparable goods imported into the European Union from third countries.
(2) For the purposes of this section—
(a) the level of tariffs imposed in respect of comparable goods imported into the European Union shall be determined with reference to EU customs duties (within the meaning of that term given by paragraph 1 of Schedule 7), and
(b) “third countries” means any country other than the United Kingdom that is not a member of the EU Customs Union.”
This new clause requires tariffs set by the UK to be pegged to EU tariffs.
New clause 5—Regulatory alignment: VAT and excise—
“(1) In exercising the powers under Parts 3 and 4 of this Act, it shall be the duty of the Treasury to secure that, so far as practicable, there is regulatory alignment in respect of VAT and excise with the European Union.
(2) For the purposes of this section, “regulatory alignment” includes, for example—
(a) the administration of VAT and excise duties on the basis of the same regulatory approach as that required in respect of EU Member States,
(b) the setting of import VAT with regard to comparable taxation within the European Union, and
(c) the establishment of a duty deferment scheme comparable to that in operation while the United Kingdom was a member of the European Union.”
This new clause requires regulatory alignment with regard to VAT and excise between new UK arrangements and those within the EU or as a member of the EU.
New clause 6—Pre-commencement impact assessment of leaving the EU Customs Union—
“No Minister of the Crown may appoint a day for the commencement of any provision of this Act until a Minister of the Crown has laid before the House of Commons an impact assessment of—
(a) disapplying the EU’s Common External Tariff, and
(b) any changes to duties, quotas or associated customs processes made as a consequence of the UK leaving the European Union.”
This new clause would require the Government to produce an impact assessment of any changes to existing cross-border taxation arrangements before any such changes are made.
New clause 7—Review of the impact of this Act on the UK economy—
“(1) Within six months of Royal Assent of this Act, the Chancellor of the Exchequer must publish and lay before both Houses of Parliament an assessment of the impact of the proposed customs regime to be implemented under this Act on—
(a) the economy of the United Kingdom,
(b) the different parts of the United Kingdom and different regions of England, and
(c) individual economic sectors.
(2) The assessment in subsection (1) must so far as practicable analyse the expected difference in outcomes between the proposed customs regime and continued participation in the EU Customs Union.
(3) In this section—
“parts of the United Kingdom” means—
(a) England,
(b) Scotland,
(c) Wales, and
(d) Northern Ireland;
“regions of England” has the same meaning as that used by the Office for National Statistics.”
This new clause requires the Treasury to publish an assessment on the economic impact of proposed customs regime and compare it to the economic impact of remaining in the EU Customs Union.
New clause 8—Review of the impact of this Act on the Northern Ireland—Ireland border—
“(1) Within six months of Royal Assent of this Act, the Chancellor of the Exchequer must publish and lay before each House of Parliament an assessment of the impact of the proposed customs regime to be implemented under this Act on Northern Ireland and the Republic of Ireland.
(2) The assessment in subsection (1) must so far as practicable analyse the expected difference in outcomes between the proposed customs regime and continued participation in the EU Customs Union.
(3) The assessment must consider—
(a) the impact of the proposed customs regime on businesses that operate in both Northern Ireland and the Republic of Ireland,
(b) what, if any, physical infrastructure will be required at the border crossings between Northern Ireland and the Republic of Ireland to enforce the proposed customs regime,
(c) if, and how, the proposed customs regime preserves the effects of the Belfast Agreement of 10 April 1998, and
(d) what, if any, rules of the EU Customs Union are included in the proposed customs regime for the purposes of—
(i) promoting cooperation between Northern Ireland and the Republic of Ireland,
(ii) supporting the economy of the entire island of Ireland, and
(iii) preserving the effects of the Belfast Agreement of 10 April 1998.”
This new clause requires the Treasury to assess the impact of the proposed customs regime on Northern Ireland and Ireland, especially on the all-island economy, border crossings, the Good Friday Agreement and future alignment with the EU Customs Union.
New clause 9—Parliamentary scrutiny of public notices—
“(1) Any provision made by a public notice under this Act is subject to annulment in pursuance of a resolution of the House of Commons.
(2) Section 5 of the Statutory Instruments Act 1946 applies to this section as if all references in that Act to a statutory instrument subject to annulment were a reference to a public notice.”
This new clause allows the House of Commons to annul provisions made by public notice under this Act.
New clause 10—Review of free zones—
“(1) The Treasury shall, within three months of the passing of this Act, carry out a review of the exercise and prospective exercise of the relevant powers relating to free zones.
(2) The review under this section shall in particular consider—
(a) the economic effects of previous designations under the relevant powers relating to free zones,
(b) the operation of free zones in other Member States of the European Union,
(c) the effects of the United Kingdom’s withdrawal from the European Union on the case for the designation of free zones (including the prospective effects of the storage procedure under Part 2 of Schedule 2 in relation to free zones), and
(d) the prospective designation of Teesport as a free zone.
(3) The Chancellor of the Exchequer shall lay a report of the review under this section before the House of Commons as soon as practicable after its completion.
(4) In this section “the relevant powers relating to free zones” means—
(a) the power of the Treasury to make an order designating any area in the United Kingdom as a special area for customs purposes under section 100A of CEMA 1979 (designation of free zones), and
(b) the powers of HMRC Commissioners under section 17 of the Value Added Tax Act 1994 (free zone regulations).”
This new clause requires a review to be undertaken of the past and possible future exercise of powers to designate free zones and related powers, including comparative information and an analysis of the impact on the case of withdrawal from the EU.
New clause 11—Preparedness for a customs union with the European Union—
“(1) It shall be one of the negotiating objectives of Her Majesty’s Government in negotiations on the matters specified in subsection (2) to create an agreement which allows the United Kingdom to secure tariff free access to the European Union including the potential to participate in a customs union with the European Union, following exit from the European Union.
(2) Those matters are—
(a) the United Kingdom’s withdrawal from the European Union, and
(b) a permanent agreement with the European Union for a period subsequent to the transitional period after the United Kingdom’s withdrawal from the European Union.
(3) It shall be the duty of the Secretary of State to lay a report before the House of Commons on the outcome of negotiations on each of the matters specified in subsection (2) in relation to the objective in subsection (1).
(4) A report under this section in relation to the matter specified in subsection (1)(a) shall include an account of—
(a) the extent to which the negotiating objective has been met,
(b) proposals for the commencement of provisions of Parts 1 and 2, and
(c) proposals for the modification of this Act in the exercise of powers under sections 31 or 54, or otherwise, in consequence of an agreement with the European Union.
(5) The provisions specified in section 55(1) come into force on the day after the day on which a report under subsection (4) is laid before the House of Commons.
(6) A report under this section in relation to the matter specified in subsection (1)(b) shall include an account of—
(a) the extent to which the negotiating objective has been met, and
(b) proposals for the modification of this Act in the exercise of powers under sections 31 or 54, or otherwise, in consequence of an agreement with the European Union.”
This new clause establishes a negotiating objective to secure an agreement which allows the United Kingdom to have tariff free access to the European Union including the potential to participate in a customs union with the European Union, following exit from the European Union, and makes associated provision about reporting and implementation and modification of the Bill as enacted.
New clause 12—Implementation of a customs union with the EU as a negotiating objective—
“(1) It shall be a negotiating objective of Her Majesty’s Government in negotiations on the matters specified in subsection (2) to secure the United Kingdom’s participation in a customs union with the European Union.
(2) Those matters are—
(a) the United Kingdom’s withdrawal from the European Union, and
(b) a permanent agreement with the European Union for a period subsequent to the transitional period after the United Kingdom’s withdrawal from the European Union.
(3) It shall be the duty of the Secretary of State to lay a report before the House of Commons in accordance with either subsection (4) or subsection (5).
(4) A report under this subsection shall be to the effect that the negotiating objective specified in subsection (1) has been achieved.
(5) A report under this subsection shall be to the effect that the negotiating objective specified in subsection (1) has not been achieved.
(6) If a report is laid before the House of Commons in accordance with subsection (4), Parts 1 and 2 of this Act shall cease to have effect on the day after that day.
(7) If a report is laid before the House of Commons in accordance with subsection (5), the provisions specified in section 55(1) come into force on the day after that day.
(8) No regulations may be made under section 55(2) for the purpose of appointing a day for the coming into force of paragraph 1 of Schedule 7 (replacement of EU customs duties) unless a report has been laid before the House of Commons in accordance with subsection (5).”
This new clause establishes a negotiating objective to secure the United Kingdom’s participation in a customs union with the European Union, provides for Parts 1 and 2 of the Act to expire if that objective is met and makes the ending of the retention of EU customs duties conditional upon a report stating that the objective has not been met.
New clause 13—Enhanced parliamentary procedure—
“(1) No regulations to which this section applies may be made except in accordance with the steps set out in this section.
(2) This section applies to—
(a) the first regulations to be made under—
(i) section 8 (the customs tariff);
(ii) section 9 (preferential rates under arrangements) in respect of any country or territory outside the United Kingdom; and
(iii) section 39 (charge to export duty);
(b) any other regulations to be made under section 8 the effect of which is an increase in the amount of import duty payable under the customs tariff in a standard case (within the meaning of that section);
(c) any other regulations under section 9 the effect of which is an increase in the amount of import duty applicable to any goods set by any regulations to which paragraph (a)(ii) applies;
(d) any other regulations under section 39 the effect of which is an increase in the amount of export duty payable;
(e) any regulations under—
(i) section 10(1) (preferential rates given unilaterally);
(ii) section 11(1) (quotes);
(iii) section 13(5) (dumping of goods, foreign subsidies and increases in imports);
(iv) section 14(1) (increases in imports or changes in price of agricultural goods); and
(v) section 15(1) (international disputes).
(3) The first step is that a Minister of the Crown must lay before the House of Commons—
(a) a draft of the regulations that it is proposed be made;
(b) in respect of regulations to be made under section 9 to which this section applies, a statement of the terms of the arrangements made with the government of the country or territory outside the United Kingdom;
(c) in respect of regulations to be made under section 10(1), a statement on the matters specified in subsection (4);
(d) in respect of regulations to be made under section 11(1), a statement on the matters specified in subsection (5);
(e) in respect of regulations to be made under section 14(1), a statement of the reasons for proposing to make the regulations;
(f) in respect of draft regulations to be under section 15(1)—
(i) a statement of the dispute or other issue that has arisen; and
(ii) an account of the reasons why the Secretary of State considers that the condition in section 15(1)(b) has been met.
(4) The matters referred to in subsection (3)(c) are—
(a) the proposed application and non-application of the scheme to each country listed in Parts 2 and 3 of Schedule 3;
(b) any proposed conditions for the application of the lower rates or nil rate; and
(c) any proposed provisions about the variation, suspension and withdrawal of the application of the lower rates or nil rate.
(5) The matters referred to in subsection (3)(d) are—
(a) in respect of any case where the condition in section 11(2)(a) is met, a statement of the terms of the arrangements made with the government of the country or territory outside the United Kingdom; and
(b) in respect of any case where the condition in section 11(2)(b) is met, a statement of the reasons why the Treasury consider it is appropriate for the goods concerned to be subject to a quota.
(6) The second step is that a Minister of the Crown must make a motion for a resolution in the House of Commons setting out, in respect of proposed regulations of which a draft has been laid in accordance with subsection (3)—
(a) in respect of draft regulations to be made under section 8 to which this section applies—
(i) the rate of import duty applicable to goods falling within a code given in regulations previously made under section 8 or in the draft of the regulations laid in accordance with subsection (3);
(ii) anything of a kind mentioned in section 8(3)(a) or (b) by reference to which the amount of any import duty applicable to any goods is proposed to be determined; and
(iii) the meaning of any relevant expression used in the motion.
(b) in respect of draft regulations to be made under section 9 to which this section applies, the rate of import duty applicable to goods, or any description of goods, originating from the country or territory.
(c) in respect of draft regulations to be made under section 11(1)—
(i) the amount of import duty proposed to be applicable to any goods that are or are proposed to be subject to a quota; and
(ii) the factors by reference to which a quota is to be determined.
(d) in respect of draft regulations to be made under section 10(1)—
(i) each country to which the proposed regulations apply;
(ii) the proposed conditions for the application of the lower rates or nil rate, and
(iii) the proposed provisions about the variation, suspension and withdrawal of the application of the lower rates or nil rate.
(e) in respect of draft regulations to be under section 13(5), the amount of import duty proposed to be applicable to any goods that are or are proposed to be subject to a quota.
(f) in respect of draft regulations to be made under section 14(1)—
(i) the proposed additional amount of import duty;
(ii) the proposed period for the purposes of section 14(1)(a); and
(iii) the proposed trigger price for the purposes of section 14(1)(b).
(g) in respect of draft regulations to be made under section 15(1), the proposed variation of import duty.
(h) in respect of draft regulations to be made under section 39 to which this section applies—
(i) the rate of export duty applicable to goods specified in the resolution;
(ii) any proposed export tariff (within the meaning given in section 39(3)(a)); and
(iii) any measure of quantity or size by reference to which it is proposed that the duty be charged.
(7) The third step is that the House of Commons passes a resolution arising from the motion made in the form specified in subsection (6) (whether in the form of that motion or as amended).
(8) The fourth step is that the regulations that may then be made must, in respect of any matters specified in the paragraph of subsection (6) that relate to the section under which the draft regulations are to be made, give effect to the terms of the resolution referred to in subsection (7).”
This new clause applies an enhanced parliamentary procedure to several of the provisions in the Bill, requiring that the House of Commons pass an amendable resolution authorising (i) the rate of import duty on particular goods; (ii) the key provisions of regulations that set quotas; (ii) the key provisions of regulations that lower import duties for eligible developing countries; (iii) the quota provisions of regulations to give effect to recommendations of the TRA; (iv) regulations setting additional import duty on agricultural goods; (v) regulations varying import duty as a result of an international dispute, and (vi) the rate of export duty on particular goods.
New clause 14—Additional regulations requiring the affirmative procedure—
“(1) No regulations to which this section applies may be made unless a draft has been laid before and approved by a resolution of the House of Commons.
(2) This section applies to regulations under—
(a) section 10(4)(a) (meaning of “arms and ammunition”);
(b) section 12 (tariff suspension);
(c) section 19 (reliefs);
(d) section 22 (authorized economic operators);
(e) section 30 (general provision for the purposes of import duty);
(f) section 42 (EU law relating to VAT);
(g) paragraph 2(1) of Schedule 3 (power to add or remove countries from lists in that Schedule);
(h) paragraph 1(3) of Schedule 4 (definitions and determinations in relation to goods being “dumped”);
(i) paragraph 5 of Schedule 4 (determination of certain matters relating to “injury” to a UK industry);
(j) paragraph 26(1) of Schedule 4 (provision for suspension of anti-dumping or anti-subsidy remedies);
(k) paragraph (1)(2)(c) of Schedule 5 (defining a “significant” increase);
(l) paragraph 2 of Schedule 5 (definitions relating to “serious injury” to a UK industry);
(m) paragraph 22(1) of Schedule 5 (provision for suspension of safeguarding remedies)
and regulations making provision on the matters in section 11(3)(c).”
This new clause applies the affirmative resolution procedure to a number of powers in the Bill.
New clause 16—Additional regulations requiring the consent of the Scottish Parliament—
“(1) No regulations to which this section applies may be made unless a draft has been given consent by the Scottish Parliament.
(2) This section applies to regulations under—
(a) section 10(4)(a) (meaning of “arms and ammunition”);
(b) section 12 (tariff suspension);
(c) section 19 (reliefs);
(d) section 22 (authorized economic operators);
(e) section 30 (general provision for the purposes of import duty);
(f) section 42 (EU law relating to VAT);
(g) paragraph 2(1) of Schedule 3 (power to add or remove countries from lists in that Schedule);
(h) paragraph 1(3) of Schedule 4 (definitions and determinations in relation to goods being “dumped”);
(i) paragraph 5 of Schedule 4 (determination of certain matters relating to “injury” to a UK industry);
(j) paragraph 26(1) of Schedule 4 (provision for suspension of anti-dumping or anti-subsidy remedies);
(k) paragraph 1(2)(c) of Schedule 5 (defining a “significant” increase);
(l) paragraph 2 of Schedule 5 (definitions relating to “serious injury” to a UK industry);
(m) paragraph 22(1) of Schedule 5 (provision for suspension of safeguarding remedies) and regulations making provision on the matters in section 11(3)(c).
(n) section 14 (Increases in imports or changes in price of agricultural goods).”
This new clause would require Scottish Parliament consent to implement a number of powers in the Bill.
New clause 18—Tariffs not to differ from the European Union until House of Commons authority given—
“(1) Unless and until the House of Commons has passed a resolution in the terms specified in subsection (3), subsection (2) shall apply.
(2) Unless and until the resolution referred to in subsection (1) is passed—
(a) in exercising the powers to impose or vary tariffs under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, the level of those tariffs is the same as that imposed in respect of comparable goods imported into the European Union from third countries, and
(b) no power of the Treasury or of the Secretary of State to impose tariffs under or by virtue of the provisions specified in subsection (5) may be exercised in respect of goods originating from a country that is a Member State of the European Union.
(3) The form of the resolution referred to in subsection (1) is “That this House authorises Her Majesty’s Government to set tariffs that differ from those of the European Union”.
(4) After the House of Commons has passed a resolution in the terms specified in subsection (3), subsection (2) shall no longer apply.
(5) The provisions referred to in subsection (2)(b) are—
(a) section 8 (customs tariff),
(b) section 11 (quotas),
(c) section 13 (dumping of goods, etc),
(d) section 14 (agricultural goods), and
(e) section 15 (international disputes).
(6) For the purposes of this section—
(a) the level of tariffs imposed in respect of comparable goods imported into the European Union shall be determined with reference to EU customs duties (within the meaning of that term given by paragraph 1 of Schedule 7), and
(b) “third countries” means any country other than the United Kingdom that is not a member of the EU Customs Union.”
This new clause would require a meaningful vote before the UK Government could introduce tariffs different to those of the EU.
New clause 20—Application to Scotland of arrangements for Northern Ireland—
“(1) No power of the Treasury or of the Secretary of State exercisable under the provisions specified in subsection (2) shall make customs arrangements in respect to goods that originated from a country that is a Member State of the European Union entering Northern Ireland unless one or both of the conditions in subsection (3) is met.
(2) Those provisions are—
(a) section 8 (customs tariff),
(b) section 11 (quotas),
(c) section 13 (dumping of goods, etc),
(d) section 14 (agricultural goods), and
(e) section 15 (international disputes).
(3) The conditions are that—
(a) the customs arrangements that apply to Northern Ireland also apply to Scotland, or
(b) the Scottish Ministers consent to the arrangements being made.”
This new clause prevents Northern Ireland being given a special status not available to Scotland, subject to approval by Scottish Ministers.
New clause 22—Review of the impact of this Act on the Northern Ireland—Ireland border (No. 2)—
“(1) Within six months of Royal Assent of this Act, the Chancellor of the Exchequer must publish and lay before each House of Parliament an assessment of the impact on—
(a) Northern Ireland, and
(b) the Republic of Ireland,
of the proposed customs regime to be implemented under this Act.
(2) The assessment in subsection (1) must so far as practicable analyse the expected difference in outcomes between the proposed customs regime and continued participation in the EU Customs Union.
(3) The assessment must consider—
(a) the impact of the proposed customs regime on businesses that operate in both Northern Ireland and the Republic of Ireland,
(b) what, if any, physical infrastructure will be required at the border crossings between Northern Ireland and the Republic of Ireland to enforce the proposed customs regime,
(c) if, and how, the proposed customs regime preserves the effects of the Belfast Agreement of 10 April 1998, and
(d) what, if any, rules of the EU Customs Union are included in the proposed customs regime for the purposes of—
(i) promoting cooperation between Northern Ireland and the Republic of Ireland,
(ii) supporting the economy of the entire island of Ireland, and
(iii) preserving the effects of the Belfast Agreement of 10 April 1998.”
This new clause requires the Treasury to assess the impact of the proposed customs regime on Northern Ireland and Ireland, especially on the all-island economy, border crossings, the Good Friday Agreement and future alignment with the EU Customs Union.
New clause 23—Additional regulations requiring the consent of the Scottish Ministers—
“(1) No regulations to which this section applies may be made unless a draft has been given consent by the Scottish Ministers.
(2) This section applies to regulations under—
(a) section 10(4)(a) (meaning of “arms and ammunition”);
(b) section 12 (tariff suspension);
(c) section 19 (reliefs);
(d) section 22 (authorized economic operators);
(e) section 30 (general provision for the purposes of import duty);
(f) section 42 (EU law relating to VAT);
(g) paragraph 2(1) of Schedule 3 (power to add or remove countries from lists in that Schedule);
(h) paragraph 1(3) of Schedule 4 (definitions and determinations in relation to goods being “dumped”);
(i) paragraph 5 of Schedule 4 (determination of certain matters relating to “injury” to a UK industry);
(j) paragraph 26(1) of Schedule 4 (provision for suspension of anti-dumping or anti-subsidy remedies);
(k) paragraph 1(2)(c) of Schedule 5 (defining a “significant” increase);
(l) paragraph 2 of Schedule 5 (definitions relating to “serious injury” to a UK industry);
(m) paragraph 22(1) of Schedule 5 (provision for suspension of safeguarding remedies) and regulations making provision on the matters in section 11(3)(c);
(n) section 14 (increases in imports or changes in price of agricultural goods).”
This new clause would require Scottish Government approval to implement a number of powers in the Bill.
New clause 25—Review of the impact of this Act on the Scottish economy—
“(1) Within six months of Royal Assent of this Act, the Chancellor of the Exchequer must publish and lay before each House of Parliament an assessment of the impact of the proposed customs regime to be implemented under this Act on the Scottish economy.
(2) The assessment in subsection (1) must so far as practicable analyse the expected difference in outcomes between the proposed customs regime and continued participation in the EU Customs Union.
(3) The assessment must consider—
(a) the impact of the proposed customs regime on businesses that operate in Scotland,
(b) the impact on public finances in Scotland.”
This new clause requires the Treasury to assess the impact of the proposed customs regime on Scotland.
New clause 26—Import tariffs under Part 1: making tariffs on the EU less or equal to those on third countries—
“(1) In exercising the powers to impose or vary rates of import duty under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, the level of those rates of import duty in respect of goods imported from the European Union is no greater than those imposed on third countries.
(2) For the purposes of this section “third countries” means any country other than the United Kingdom that is not a member of the EU Customs Union.”
This new clause requires tariffs set by the UK on EU goods to be no greater than those imposed on any third countries.
New clause 27—Import tariffs under Part 1: preventing tariffs on goods from third countries being lower than those on comparable goods from the European Union—
“(1) In exercising the powers to impose or vary rates of import duty under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, rates of import duty are applied in respect of goods imported from third countries are not set at a lower rate than the rate of import duty set by the European Union in respect of the same goods and countries.
(2) This section does not apply to—
(a) eligible developing countries, or
(b) least developed countries.
(3) For the purposes of this section—
(a) “third countries” means any country other than the United Kingdom that is not a member of the EU Customs Union;
(b) “eligible developing countries” and “least developed countries” means those countries defined as such in Schedule 3.”
This new clause would prevent tariffs on goods from third countries being lower than those on comparable goods from the European Union.
New clause 28—Import tariffs under Part 1: preventing tariffs on third countries which may cause a dispute with the EU—
“(1) In exercising the powers to impose or vary rates of import duty under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, rates of import duty are not applied in respect of goods imported from third countries which may jeopardise customs arrangements with the European Union or cause any dispute with the European Union.
(2) For the purposes of this section ‘third countries’ means any country other than the United Kingdom that is not a member of the EU Customs Union.”
This new clause would prevent a UK Government from entering into customs arrangements with third countries which would jeopardise customs arrangements with the European Union or cause any dispute with the European Union.
New clause 29—Import tariffs under Part 1: pegging with EU tariffs—
“(1) In exercising the powers to impose or vary rates of import duty under or by virtue of the provisions of sections 8 to 15, it shall be the duty of the Treasury and the Secretary of State to secure that, so far as practicable, rates of import duty are the same as those imposed in respect of comparable goods imported into the European Union from third countries.
(2) For the purposes of this section—
(a) the rates of import duty imposed in respect of comparable goods imported into the European Union shall be determined with reference to EU customs duties (within the meaning of that term given by paragraph 1 of Schedule 7), and
(b) ‘third countries’ means any country other than the United Kingdom that is not a member of the EU Customs Union.”
This new clause requires tariffs set by the UK to be pegged to EU tariffs.
New clause 30—Super-affirmative resolution procedure—
“(1) For the purposes of this Act, the ‘super-affirmative resolution procedure’ in relation to the making of regulations to which this section applies is as follows.
(2) If a Minister considers it necessary to proceed with the making of regulations to which this section applies, the Minister shall lay before the House of Commons—
(a) draft regulations,
(b) an explanatory document under subsection (3), and
(c) a declaration under subsection (4).
(3) The explanatory document must—
(a) introduce and explain any amendments made to retained EU law by each proposed regulation, and
(b) set out the reason why each such amendment is necessary (or, in the case where the Minister is unable to make a statement of necessity under subsection (4)(a), the reason why each such amendment is nevertheless considered appropriate).
(4) The declaration under subsection (2)(c) must either—
(a) state that, in the Minister’s view, the provisions of the draft regulations do not exceed what is necessary to prevent, remedy or mitigate any deficiency in retained EU law arising from the withdrawal of the United Kingdom from the EU (a “statement of necessity”), or
(b) include a statement to the effect that although the Minister is unable to make a statement of necessity the Government nevertheless proposes to exercise the power to make the regulations in the form of the draft.
(5) Subject as follows, if after the expiry of the 21-day period a committee of the House of Commons appointed to consider draft regulations under this section has not reported to the House of Commons a resolution in respect of the draft regulations laid under section 32(2A) or 42(6), the Minister may proceed to make a statutory instrument in the form of the draft regulations.
(6) A statutory instrument containing regulations under subsection (5) shall be subject to annulment in pursuance of a resolution of the House of Commons.
(7) The procedure in subsection (8) to (15) shall apply to the proposal for the draft regulations instead of the procedure in subsection (5) if—
(a) the House of Commons so resolves within the 21-day period,
(b) the committee appointed to consider draft regulations under this section so recommends within the 21-day period and the House of Commons does not by resolution reject the recommendation within that period, or
(c) the draft regulations contain provision to—
(i) establish a public authority in the United Kingdom,
(ii) provide for any function of an EU entity or public authority in a member State to be exercisable instead by a public authority in the United Kingdom established by regulations under sections 42, 43 or schedule 8,
(iii) provides for any function of an EU entity or public authority in a member State of making an instrument of a legislative character to be exercisable instead by a public authority in the United Kingdom,
(iv) imposes, or otherwise relates to, a fee in respect of a function exercisable by a public authority in the United Kingdom,
(v) creates, or widens the scope of, a criminal offence, or
(vi) creates or amends a power to legislate.
(8) The Minister must have regard to—
(a) any representations,
(b) any resolution of the House of Commons, and
(c) any recommendations of a committee of the House of Commons charged with reporting on the draft regulations, made during the 60-day period with regard to the draft regulations.
(9) If, after the expiry of the 60-day period, the Minister wishes to make regulations in the terms of the draft, the Minister must lay before the House of Commons a statement—
(a) stating whether any representations were made under subsection (8)(a), and
(b) if any representations were so made, giving details of them.
(10) The Minister may after the laying of such a statement make regulations in the terms of the draft if it is approved by a resolution of the House of Commons.
(11) However, a committee of the House of Commons charged with reporting on the draft regulations may, at any time after the laying of a statement under subsection (9) and before the draft regulations are approved by that House under subsection (10), recommend under this subsection that no further proceedings be taken in relation to the draft regulations.
(12) Where a recommendation is made by a committee of the House of Commons under subsection (11) in relation to draft regulations, no proceedings may be taken in relation to the draft regulations in the House of Commons under subsection (10) unless the recommendation is, in the same Session, rejected by resolution of the House of Commons.
(13) If, after the expiry of the 60-day period, the Minister wishes to make regulations consisting of a version of the draft regulations with material changes, the Minister must lay before Parliament—
(a) revised draft regulations, and
(b) a statement giving details of—
(i) any representations made under subsection (8)(a); and
(ii) the revisions proposed.
(14) The Minister may after laying revised draft regulations and a statement under subsection (9) make regulations in the terms of the revised draft if it is approved by a resolution of the House of Commons.
(15) However, a committee of the House of Commons charged with reporting on the revised draft regulations may, at any time after the revised draft regulations are laid under subsection (12) and before it is approved by the House of Commons under subsection (13), recommend under this subsection that no further proceedings be taken in relation to the revised draft regulations.
(16) Where a recommendation is made by a committee of the House of Commons under subsection (14) in relation to revised draft regulations, no proceedings may be taken in relation to the revised draft regulations in the House of Commons under subsection (13) unless the recommendation is, in the same Session, rejected by resolution of the House of Commons.
(17) In this section, references to the ‘21-day’ and ‘60-day’ periods in relation to any draft regulations are to the periods of 21 and 60 days beginning with the day on which the draft regulations were laid before Parliament.”
This new clause applies an amended version of the super-affirmative resolution procedure to certain powers to make regulations under Schedules 4 and 5, and Clause 42.
New clause 31—VAT deferral scheme—
“(1) This section applies if it appears to the Secretary of State that the United Kingdom will cease to be a member of the European Union taxation and customs union.
(2) The Secretary of State must by regulations introduce a domestic deferral scheme for UK importers.
(3) In designing a scheme under subsection (2), the Secretary of State must consult with whichever relevant stakeholders deemed by the Secretary of State to be appropriate.
(4) Regulations under subsection (2) may be made only if a draft of the regulations has been laid before, and approved by resolution of, the House of Commons.”
This new clause ensures that in the event that the UK is no longer a member of the EU VAT area, the Secretary of State must by draft affirmative regulation introduce a VAT deferral scheme.
New clause 32—Rules of origin—
“(1) Where the exigencies of trade so require, a document proving origin may be issued in the UK in accordance with the rules of origin in force in the country or territory of destination or any other method identifying the country where the goods were wholly obtained or underwent their last substantial transformation. The Secretary of State may by regulations specify—
(a) the bodies that certificate origin for the purposes of a certificate under subsection (1),
(b) the specifications of the certificate, and
(c) any other relevant factor.”
This new clause would allow a document proving origin to be issued in the UK and would allow the Secretary of State to make regulations specifying the bodies that can issue a certificate and the specifications of a certificate as well as other relevant factors.
New clause 33—Additional regulations requiring the affirmative procedure (No. 2)—
“(1) No regulations to which this section applies may be made unless a draft has been laid before and approved by a resolution of the House of Commons.
(2) This section applies to regulations under—
(a) section 8(1) (the customs tariff);
(b) section 14(1) (agricultural goods);
(c) section 19(1) (reliefs);
(d) section 22(1) (authorised economic operators);
(e) section 30 (general provision for the purposes of import duty);
(f) section 39(1) (export duties);
(g) section 42(5) (exclusion from principal VAT directive);
(h) section 47(2) (exclusion from or modification of EU law relating to excise duty).”
This new clause applies the affirmative resolution procedure to a number of powers in the Bill.
New clause 34—Exclusion from tariffs for land border—
“Upon the United Kingdom’s withdrawal from the European Union, the United Kingdom shall not charge any customs duty or impose any quotas on goods entering the United Kingdom across the land border between the Republic of Ireland and the United Kingdom.”
New clause 35—Exclusion from tariffs for goods imported from the Republic of Ireland—
“Part 1 of this Act shall not apply to the import of any good into the United Kingdom from the Republic of Ireland.”
New clause 36—Prohibition on collection of certain taxes or duties on behalf of territory without reciprocity—
“(1) Subject to subsection (2), it shall be unlawful for HMRC to account for any duty of customs or VAT or excise duty collected by HMRC to the Government of a country or territory outside the United Kingdom.
(2) Subsection (1) shall not apply if the Treasury declare by Order that arrangements have been entered into by Her Majesty’s Government and that government under which that government will account to HMRC for those duties and taxes collected in that country on a reciprocal basis.”
New clause 37—Single United Kingdom customs territory—
“(1) It shall be unlawful for Her Majesty‘s Government to enter into arrangements under which Northern Ireland forms part of a separate customs territory to Great Britain.
(2) For the purposes of this section “customs territory” shall have the same meaning as in the General Agreement on Tariffs and Trade, 1947, as amended.”
Amendment 26, in clause 2, page 2, line 3, at end insert
“or goods coming from the EEA”.
This amendment seeks to remove the Bill’s provisions to grant the UK Government the ability to impose customs on EEA goods.
Amendment 68, in clause 2, page 2, line 3, at end insert
“or goods entering the United Kingdom across the land border between the Republic of Ireland and the United Kingdom”.
Amendment 69, in clause 2, page 2, line 3, at end insert
“or goods imported into the United Kingdom from the Republic of Ireland.”
Government amendment 74.
Amendment 71, in clause 8, page 6, line 6, at end insert—
“(e) the interests of producers in the United Kingdom,
(f) the desirability of maintaining United Kingdom standards of animal welfare, food safety and environmental protection.”
This amendment would require the Treasury, when considering the rate of import duty that ought to apply to any goods, to have regard to the interests of UK producers (e.g. farmers) and to the desirability of ensuring that UK standards of animal welfare, food safety and environmental protection are not undermined by imports produced to lower standards.
Amendment 119, in clause 8, page 6, line 6, at end insert—
“(e) the impacts on sustainable development.”
This amendment requires the Treasury to have regard to Government obligations to sustainable development in considering the rate of import duty.
Government amendment 84.
Amendment 21, in clause 13, page 9, line 18, at end insert—
“(4A) Subsection (4B) applies where the TRA or the Secretary of State is considering whether the application of a remedy, or the acceptance of a recommendation to do so—
(a) is in the public interest, or
(b) meets either of the economic interest tests described in paragraph 25 of Schedule 4 or paragraph 21 of Schedule 5.
(4B) In making a consideration to which this subsection applies, notwithstanding the provisions of Schedules 4 and 5, the TRA or the Secretary of State must give special consideration to the need to eliminate the trade distorting effect of injurious dumping and to restore effective competition, and must presume the application of a remedy or the acceptance of a recommendation to do so to be in the public interest and to have met the economic interest test unless this special consideration is significantly outweighed.”
This amendment ensures that there is a presumption that if dumping is found, a remedial action will be taken.
Amendment 54, in clause 15, page 10, line 18, at end insert—
“(3) The Secretary of State must lay before the House of Commons an annual report on the exercise of the powers under this section including information on—
(a) the relevant international law authorising the exercise of the powers in each case, and
(b) the matters in dispute or issues arising in each case.”
This amendment requires the Government to report on the circumstances of, and international law basis for, each variation of tariffs as a result of a trade dispute.
Amendment 55, in clause 22, page 14, line 36, at end insert—
“(4) Within three months of the passing of this Act, the Chancellor of the Exchequer must lay before the House of Commons a report on the proposed exercise of the power of the HMRC Commissioners to make regulations under subsection (1), including in particular—
(a) the proposed criteria to be applied in determining whether or not any person should be an authorised economic operator,
(b) an assessment of the structure of the authorised economic operator system in Germany, Austria and such other countries as the Chancellor of the Exchequer considers relevant,
(c) the proposed differences between the structure that is proposed to be established by the first exercise of the power to make regulations under subsection (1) and each of those structures described in accordance with paragraph (b),
(d) the level of proposed resources to be allocated by the HMRC Commissioners for the authorisation of new authorised economic operators, and
(e) the target timetable for the authorisation of—
(i) new authorised economic operators in each class, and
(ii) authorised economic operator certification renewals in each class.”
This amendment requires the Government to report on the proposed operation of the powers of the HMRC under Clause 22, including comparative information.
Amendment 33, in clause 25, page 17, line 2, leave out “Data Protection Act 1998” and insert “data protection legislation”.
This amendment and Amendment 34 seeks to provide that the powers of disclosure cannot be exercised in breach of the updated data protection framework to be enshrined in the Data Protection Act 2018.
Amendment 34, in clause 25, page 17, line 4, at end insert—
“(8) In this section, “the data protection legislation” has the same meaning as in the Data Protection Act 2018.”
Amendment 70, page 18, line 11, leave out clause 31.
Amendment 72, in clause 31, page 18, line 34, at end insert—
“(4A) In the case of a customs union between the United Kingdom and the European Union, Her Majesty may not make a declaration by Order In Council under subsection (4) unless the arrangements have been approved by an Act of Parliament.”
This amendment provides that the delegated powers under this clause may not be exercised until a proposed customs union with the European Union has been approved by a separate Act of Parliament.
Amendment 8, page 18, line 38, at beginning insert “subject to subsection (8)”.
This amendment paves the way for Amendment 9.
Amendment 9, page 19, line 10, at end insert—
“(8) When the power under subsection (4) has been exercised in respect of a customs union between the United Kingdom and the European Union, the powers in subsections (4) and (5) may not be exercised so as to—
(a) provide that that customs union shall cease to have effect, or
(b) modify or disapply provision made by or under any other Act in a way that provides that that customs union shall cease to have effect.”
This amendment would prevent the delegated powers under Clause 31 being used to end a customs union once the transition period has finished. It provides that the delegated powers under Clause 31, once exercised in relation to a customs union with the EU, cannot be exercised to provide for departure from such a union.
Amendment 56, in clause 32, page 19, line 14, leave out subsections (2) to (4).
This amendment is consequential on NC33.
Government amendment 75.
Amendment 35, in clause 32, page 19, line 18, at end insert—
“(c) regulations under paragraph 4(2), 9(3) or 14(4) of Schedule 4.”
This amendment provides for regulations made under certain provisions of Schedule 4 (regarding dumping of goods or foreign subsidies causing injury to UK industry) to be subject to the made affirmative procedure rather than the negative procedure.
Amendment 36, page 19, line 18, at end insert—
“(c) regulations under paragraph 1(2), 3(2), 4(2) or 5 of Schedule 5.”
This amendment provides for regulations made under certain provisions of Schedule 5 (regarding an increase in imports causing serious injury to UK producers) to be subject to the made affirmative procedure rather than the negative procedure.
Government amendment 76.
Amendment 37, page 19, line 21, at end insert—
“(2A) Section (Super-affirmative resolution procedure) applies to regulations under paragraph 1(3), 3(5), 5(2), or 6(2) of Schedule 4.”
This amendment provides for regulations made under certain provisions of Schedule 4 (regarding dumping of goods or foreign subsidies causing injury to UK industry) to be subject to the superaffirmative resolution procedure, as defined in NC12.
Amendment 38, page 19, line 21, at end insert—
“(2A) Section (Super-affirmative resolution procedure) applies to regulations under paragraph 2(2) or 2(3) of Schedule 5.”
This amendment provides for regulations made under certain provisions of Schedule 5 (regarding an increase in imports causing serious injury to UK producers) to be subject to the superaffirmative resolution procedure, as defined in NC12.
Amendment 57, page 19, line 32, leave out “subsection (2)” and insert
“section (Additional regulations requiring the affirmative procedure (Amendment 2))”.
This amendment is consequential on NC33.
Amendment 39, page 19, line 32, after “(2)” insert “or (2A)”.
This amendment is consequential to Amendment 38.
Amendment 40, page 27, line 5, after second “to”, insert “number”.
This amendment clarifies that goods may be defined for the purposes of the export tariff simply by reference to their number.
Government amendment 77.
Amendment 41, in clause 39, page 27, line 12, at end insert—
“(aa) the interests of manufacturers in the United Kingdom,”.
This amendment requires the Treasury to have regard to the interests of manufacturers in considering the rate of export duty.
Amendment 42, page 27, line 17, at end insert “and
(e) the public interest.”
Amendment 120, page 27, line 17, at end insert “and
(e) the impacts on sustainable development.”
This amendment requires the Treasury to have regard to Government obligations towards sustainable development in considering the rate of export duty.
Amendment 58, in clause 40, page 27, line 35, leave out subsections (2) to (4).
This amendment is consequential on NC33.
Amendment 59, page 28, line 7, leave out “subsection (2)” and insert
“section (Additional regulations requiring the affirmative procedure (Amendment 2))”.
This amendment is consequential on NC33.
Amendment 43, in clause 42, page 29, line 23, leave out subsection (1).
This amendment would be to remove from the Bill the provision that retained EU law on VAT should not have effect, despite forming part of UK law as a result of Clause 3 of the European.
Amendment 44, page 29, line 44, leave out from “regulation” to end of line 45.
The effect of this amendment would be to ensure that the UK Government does not exclude aspects of the EU’s principal VAT Directive that remain relevant by delegated legislation.
Government amendment 78.
Amendment 45, page 30, line 1, leave out subsection (6) and insert—
“(6) Section (Super-affirmative resolution procedure) applies to regulations made under this section.”
This amendment applies the super-affirmative resolution procedure, described in NC12, to regulations made under this section.
Amendment 60, page 30, line 1, leave out subsection (6).
This amendment is consequential on NC33.
Government amendment 79.
Amendment 62, page 30, line 12, at end insert—
“(9) This section shall, subject to subsection (10), cease to have effect at the end of the period of three years beginning with the day on which this Act is passed.
(10) The Treasury may by regulations provide that this section shall continue in force for an additional period of up to three years from the end of the period specified in subsection (9).
(11) The power to make regulations under subsection (10) may only be exercised once.
(12) No regulations may be made under subsection (10) unless a draft has been laid before and approved by a resolution of the House of Commons.”
This amendment sunsets the provisions of Clause 42.
Amendment 63, in clause 45, page 31, line 25, at end insert—
“(5) This section shall, subject to subsection (6), cease to have effect at the end of the period of three years beginning with the day on which this Act is passed.
(6) The Treasury may by regulations provide that this section shall continue in force for an additional period of up to three years from the end of the period specified in subsection (5).
(7) The power to make regulations under subsection (7) may only be exercised once.
(8) No regulations may be made under subsection (7) unless a draft has been laid before and approved by a resolution of the House of Commons.”
This amendment sunsets the provisions of Clause 45.
Government amendment 80.
Amendment 64, in clause 47, page 33, line 7, at end insert—
“(5) This section shall, subject to subsection (6), cease to have effect at the end of the period of three years beginning with the day on which this Act is passed.
(6) The Treasury may by regulations provide that this section shall continue in force for an additional period of up to three years from the end of the period specified in subsection (5).
(7) The power to make regulations under subsection (7) may only be exercised once.
(8) No regulations may be made under subsection (7) unless a draft has been laid before and approved by a resolution of the House of Commons.”
This amendment sunsets the provisions of Clause 47.
Government amendment 81.
Amendment 22, in clause 48, page 33, line 29, at end insert—
“(5A) No regulations may be made under section 47 unless a draft has been laid before, and approved by a resolution of, the House of Commons.”
Government amendment 23.
Amendment 61, page 33, line 31, leave out “applies” and insert
“or section (Additional regulations requiring the affirmative procedure (Amendment 2)) apply”.
This amendment is consequential on NC33.
Amendment 46, in clause 51, page 34, line 39, leave out second “appropriate” and insert “necessary”.
This amendment provides that the power to make regulations about VAT, customs duty and excise duty in consequence of UK withdrawal from the EU is only exercised when it is necessary to do so.
Government amendment 82.
Amendment 10, page 35, line 1, leave out paragraph (a).
This amendment prevents regulations under Clause 51 from making any provision as might be made by an Act of Parliament.
Amendment 67, page 35, line 2, after “Act”, insert
“other than provision creating a delegated power”.
This amendment removes the power for regulations made under Clause 51 to create further delegated powers (tertiary legislation).
Amendment 47, page 35, line 4, at end insert—
“(c) may not be made after 29 March 2021.
‘(2A) The Secretary of State may by regulations amend the date in paragraph (1)(c) to ensure that the day specified is the day that any transition period related to the United Kingdom’s withdrawal from the European Union comes to an end.
(2B) A statutory instrument containing regulations under subsection (2A) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”
This amendment inserts a sunset provision that disallows any regulations to be made under Clause 51 after 29 March 2021, while also allowing the Secretary of State to alter that date, by regulations subject to the affirmative procedure, in the event that this is not the date on which any transition period following the United Kingdom’s withdrawal from the European Union comes to an end.
Amendment 48, page 35, line 10, after “section” insert
“, apart from regulations under subsection (2A),”.
This amendment is consequential to Amendment 47.
Amendment 49, page 35, line 25, after “apply” insert
“, apart from regulations under subsection (2A),”.
This amendment is consequential to Amendment 47.
Amendment 65, page 35, line 38, at end insert—
“(10) This section shall, subject to subsection (11), cease to have effect at the end of the period of three years beginning with the day on which this Act is passed.
(11) The Treasury may by regulations provide that this section shall continue in force for an additional period of up to three years from the end of the period specified in subsection (10).
(12) The power to make regulations under subsection (11) may only be exercised once.
(13) No regulations may be made under subsection (11) unless a draft has been laid before and approved by a resolution of the House of Commons.”
This amendment sunsets the provisions of Clause 51.
Amendment 50, in clause 54, page 37, line 5, leave out second “appropriate” and insert “necessary”.
This amendment ensures that regulations making consequential and transitional provision may only be made when necessary.
Amendment 51, page 37, line 14, leave out “appropriate” and insert “necessary”.
This amendment ensures that regulations making consequential and transitional provision may only be made when necessary.
Amendment 2, in clause 55, in clause 55, page 38, line 15, leave out from “force” to end of line 16 and insert
“in accordance with the provisions of section (EU Customs Union and pre-commencement requirements) (7).”
This amendment is consequential on NC1.
Amendment 13, page 38, line 15, leave out from “force” to end of line 16 and insert
“in accordance with the provisions of section (Preparedness for a customs union with the European Union) (5)”.
This amendment is consequential on NC11.
Amendment 20, page 38, line 15, leave out from “force” to end of line 16 and insert
“in accordance with the provisions of section (Implementation of a customs union with the EU as a negotiating objective) (7)”.
This amendment is consequential on NC12.
Amendment 5, page 38, line 17, leave out paragraphs (a) to (d) and insert—
“(a) section (Pre-commencement impact assessment of leaving the EU Customs Union), and”.
This amendment is consequential on NC6.
Amendment 52, page 38, line 17, after “(2)”, insert “and (2A)”.
This amendment paves the way for Amendment 53.
Amendment 6, page 38, line 24, leave out subsection (2).
This amendment is consequential on NC6.
Amendment 3, page 38, line 32, at end insert—
“(2A) No regulations may be made for the purpose of appointing a day for the coming into force of paragraph 1 of Schedule 7 (replacement of EU customs duties) unless a draft has been laid before, and approved by a resolution of, the House of Commons.”
This amendment requires regulations commencing paragraph 1 of Schedule 7 to be subject to the affirmative procedure.
Amendment 4, page 38, line 32, at end insert—
“(2A) No regulations may be made for the purpose of appointing a day for the coming into force of any provision in Part 3 (amending or superseding EU law relating to VAT) unless a draft has been laid before, and approved by a resolution of, the House of Commons.”
This amendment requires regulations commencing provisions in Part 3 to be subject to the affirmative procedure.
Amendment 28, page 38, line 32, at end insert—
“(2A) Regulations under subsection (2) may not be made until the Secretary of State has consulted with the Scottish Ministers on the effect of deviating from EU levels of import duties in relation to—
(a) preferential rates,
(b) dumping of goods and foreign subsidies,
(c) international disputes,
(d) replacement of EU trade duties.”
This amendment would require the UK Government to consult Scottish Ministers before deviating from EU levels of import duties in relation to (a) preferential rates (b) dumping of goods and foreign subsidies (c) international disputes (d) replacement of EU trade duties.
Amendment 29, page 38, line 32, at end insert—
“(2A) The following provisions come into force on such day as the Secretary of State may be regulations under this section appoint—
(a) section 41 (abolition of acquisition VAT and extension of import VAT),
(b) section 42 (EU law related to VAT), and
(c) section 43 and Schedule 8 (VAT amendment connected with withdrawal from EU).
(2B) Regulations under subsection (2A) may not be made until the Secretary of State has consulted with the Scottish Ministers on—
(a) the effect of leaving the EU VAT area on the lawful importation of goods into the United Kingdom from the European Union, and
(b) the effect of abolishing acquisition VAT and extending import VAT on the lawful importation of goods into the United Kingdom from the European Union.”
This amendment would require the UK Government to consult with Scottish Ministers before leaving the EU VAT Area before any system of upfront import VAT could be applied.
Amendment 31, page 38, line 32, at end insert—
“(2A) Regulations under subsection (2) may not be made until the Secretary of State has laid before the House of Commons an impact assessment that considers the effect on Scotland of deviating from EU levels of import duties in relation to
(a) preferential rates
(b) dumping of goods and foreign subsidies
(c) international disputes
(d) replacement of EU trade duties.”
This amendment would require the UK Government to make a Scottish impact assessment on the effects of deviating from EU levels of import duties in relation to (a) preferential rates (b) dumping of goods and foreign subsidies (c) international disputes (d) replacement of EU trade duties.
Amendment 53, page 38, line 32, at end insert—
“(2A) The following provisions come into force on such day as the Secretary of State may be regulations under this section appoint—
(a) section 41 (abolition of acquisition VAT and extension of import VAT),
(b) section 42 (EU law related to VAT), and
(c) section 43 and Schedule 8 (VAT amendment connected with withdrawal from EU).
(2B) Regulations under subsection (2A) may not be made until the Secretary of State has laid before the House of Commons an impact assessment that considers—
(a) the effect of leaving the EU VAT area on the lawful importation of goods into the United Kingdom from the European Union, and
(b) the effect of abolishing acquisition VAT and extending import VAT on the lawful importation of goods into the United Kingdom from the European Union.”
This amendment would require the UK Government to make an impact assessment on the effects of leaving the EU VAT Area before any system of upfront import VAT could be applied to goods lawfully being imported into the UK from the European Union under EU Law.
Amendment 7, page 38, line 34, at end insert—
“(3A) Subsection (3) is subject to section (Pre-commencement impact assessment of leaving the EU Customs Union).”
This amendment is consequential on NC6.
Amendment 15, in schedule 4, page 58, line 2, after “consumption”, insert “by independent customers”.
This amendment requires the comparable price for the purposes of determining the normal value to be assessed with respect to consumption by independent customers.
Amendment 16, page 58, line 4, at end insert
“sub-paragraphs (2A) to (2L) and with”.
This amendment paves the way for Amendment 17.
Amendment 17, page 58, line 6, at end insert—
“(2A) For the purposes of sub-paragraph (2) the following shall apply.
(2B) Where the exporter in the exporting country does not produce or does not sell the like goods, the normal value may be established on the basis of prices of other sellers or producers.
(2C) Prices between parties which appear to be associated or to have a compensatory arrangement with each other shall not be considered to be in the ordinary course of trade and shall not be used to establish the normal value unless it is determined that they are unaffected by the relationship.
(2D) Sales of the like goods intended for consumption in the exporting foreign country or territory shall normally be used to determine the normal value if such sales volume constitutes 5% or more of the sales volume exported to the United Kingdom, but a lower volume of sales may be used when, for example, the prices charged are considered representative for the market concerned.
(2E) When there are no or insufficient sales of the like goods in the ordinary course of trade, or where, because of the particular market situation, such sales do not permit a proper comparison, the normal value shall be calculated on the basis of—
(a) the cost of production in the country of origin plus a reasonable amount for selling, general and administrative costs and for profits, or
(b) the export prices, in the ordinary course of trade, to an appropriate third country, provided that those prices are representative.
(2F) Sales of the like goods in the domestic market of the exporting foreign country or territory, or export sales to a third country, at prices below unit production costs plus selling, general and administrative costs shall be treated as not being in the ordinary course of trade by reason of price, and disregarded in determining the normal value, if it is determined that such sales are made within an extended period in substantial quantities, and are at prices which do not provide for the recovery of all costs within a reasonable period of time.
(2G) The amounts for selling, for general and administrative costs and for profits shall be based whenever possible on actual data pertaining to production and sales, in the ordinary course of trade, of the like product by the exporter or producer under investigation.
(2H) When it is not possible to determine such amounts on the basis prescribed in sub-paragraph (2G), the amounts may be determined on the basis of—
(a) the weighted average of the actual amounts determined for other exporters or producers subject to investigation in respect of production and sales of the like product in the domestic market of the country of origin,
(b) the actual amounts applicable to production and sales, in the ordinary course of trade, of the same general category of products for the exporter or producer in question in the domestic market of the country of origin,
(c) any other reasonable method, provided that the amount for profit so established shall not exceed the profit normally realised by other exporters or producers on sales of products of the same general category in the domestic market of the country of origin.
(2I) If the TRA determines that it is not appropriate to use domestic prices and costs in the exporting country due to the existence in that country of significant distortions, the normal value shall be constructed exclusively on the basis of costs of production and sale reflecting undistorted prices or benchmarks, subject to the following provisions.
(2J) “Significant distortions” for this purpose means distortions which occur when reported prices or costs, including the costs of raw materials and energy, are not the result of free market forces because they are affected by substantial government intervention.
(2K) The TRA shall use the corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country, provided the relevant data are readily available; and, where there is more than one such country, preference shall be given, where appropriate, to countries with an adequate level of social and environmental protection.
(2L) If such data are not available, the TRA may use any other evidence it deems appropriate for establishing a fair normal value, including undistorted international prices, costs, or benchmarks; or costs in the exporting country to the extent that they are positively established not to be distorted.”
This amendment makes further provision on the face of the Bill about how the normal value and the comparable price are to be determined in certain circumstances.
Amendment 18, page 58, line 6, at end insert—
“(2M) A fair comparison shall be made between the export price and the normal value.
(2N) The comparison for the purposes of sub-paragraph (4) shall be made at the same level of trade and in respect of sales made at, as closely as possible, the same time and with due account taken of other differences which affect price comparability.
(2O) Where the normal value and the export price as established are not on such a comparable basis, due allowance, in the form of adjustments, shall be made in each case, on its merits, for differences in factors which are claimed, and demonstrated, to affect prices and price comparability.”
This amendment provides for fair comparison between the export price and the normal value.
Amendment 19, page 58, leave out lines 8 to 15 and insert—
“(a) to provide guidance with respect to the application of sub-paragraphs (2) to (2O).”
This amendment replaces the provision for definitions of key terms and the determination of related matters in individual cases with guidance about the application of the existing provisions and those contained in Amendments 17 and 18.
Amendment 25, page 58, line 12, and end insert—
“(v) ‘specified cases where it is not appropriate to use the price in paragraph 2(a)” including details on determining normal value in the presence of state distortions and non-market economy situations.’
This amendment would provide certainty by placing a marker in primary legislation to ensure that secondary legislation will clarify how, in anti-dumping investigations, the TRA will calculate the level of dumping for cases where the domestic prices of the alleged dumped imports cannot be used.
Government amendments 103 to 112.
Amendment 24, page 76, line 12, at end insert—
“25A (1) The TRA shall, in determining the amount which it is satisfied would be adequate to remove the injury described in paragraph 14(3)(b) or 18(4)(b), take account of all elements of the material injury being caused to the UK industry, including, but not limited to, the impact of reduced sales volumes, price suppression and curtailment of investment. Regulations may make further provision for this purpose.
(2) Regulations may make provision for specific circumstances in which paragraph 14(3)(b) or 18(4)(b) may not apply.”
Amendment 32, page 76, line 12, at end insert—
“25A (1) The TRA shall, in determining the amount which it is satisfied would be adequate to remove the injury described in paragraph 14(3)(b) or 18(4)(b), take account of all elements of the material injury being caused to UK industry, consumers and public administration and finances, including, but not limited to, the impact of reduced sales volumes, price suppression, curtailment of investment and availability of goods. Regulations may make further provision for this purpose.
(2) Regulations may make provision for specific circumstances in which paragraph 14(3)(b) or 18(4)(b) may not apply.
(3) No regulations may be made under sub-paragraph (2) unless—
(a) A Minister of the Crown has made a statement to the House of Commons that Her Majesty’s Government has negotiated with the relevant foreign government in order to remedy the activity causing injury to UK industry;
(b) lay before the House of Commons an impact assessment of implementing the regulations; and
(c) a draft of those regulations has been laid before, and approved by a resolution of, the House of Commons.”
This amendment ensures the TRA considers a wider range of economic variables when considering policy responses to trade disputes and allows UK ministers to make associated regulations setting aside this wider set of considerations, so long as the UK Government has entered negotiations with the third country in question, provided an impact assessment on policy changes and that the policy change has been approved by a resolution in the House of Commons.
Government amendment 113.
Government amendments 85 to 96.
Government amendment 114.
Government amendments 97 and 98.
Government amendments 115 and 116.
Government amendment 99.
Government amendments 117 and 118.
Government amendments 100 to 102.
Amendment 11, in schedule 7, page 122, line 35, at end insert—
“88A (1) Section 100A (designation of free zones) is amended as follows.
(2) After subsection (2), insert—
‘(2A) The Treasury must, no later than 2 years after the passing of the Taxation (Cross-border Trade) Act 2018, exercise the power under subsection (1) to designate Teesport as a free zone.’
(3) After subsection (3), insert—
‘(3A) The first exercise of the power under subsection (1) in pursuance of the duty under subsection (2A) shall be for a period of no less than 5 years.’”
This amendment requires the Treasury to designate Teesport as a free zone for customs purposes.
Amendment 73, in schedule 8, page 135, leave out paragraph 14.
Government amendment 83.
Anna Soubry
I rise to speak in support of new clause 1 and new clause 12, and I shall also seek to speak briefly against new clause 36 and amendment 73. I hope that there will be Divisions, in the event of which I will vote against new clause 36 and amendment 73. It is my firm view that it is deeply regrettable that the Government have accepted the new clause and amendment, even though they clearly seek to undermine, if not wreck, the great advances made in the White Paper.
I shall speak, as I like to think I always do, with openness, frankness and honesty. When I became a Business Minister in David Cameron’s Government in 2015, I would be the first to admit that I did not know the finer details of how many of our manufacturing industries and businesses actually worked. I knew about supply chains and their value, but I could not claim, in any way, shape or form, to be particularly familiar with them. I relished my brief, though, so I was soon enmeshed in the manufacturing sector in particular. For example, I had responsibility for the automotive sector, aerospace and, of course, the steel industry, which many Members will remember was having a particularly difficult time. I soon became not quite an expert, but I certainly knew my brief. I understood how supply chains worked, the value of frictionless trade and what this thing called “just in time” was really all about. I had never actually seen it, though, until Friday, when I went to the Toyota factory at Burnaston, which is just outside Derby. I would make it compulsory for every single Member to go to Toyota—they could go to another car manufacturer in Swindon, or to Nissan in Sunderland, as I did shortly after the EU referendum—so that they could begin to understand what a supply chain is, why it relies on frictionless borders and what “just in time” means.
Let me give Members a bit of history about that remarkable Toyota plant just outside Derby. It is actually a legacy to Margaret Thatcher. It opened at the beginning of the 1990s. Some of us are old enough to remember those times and what had happened in many of our traditional manufacturing industries. My right hon. Friend the Member for Loughborough (Nicky Morgan), who is sitting next to me, has a business in her constituency called Brush. It is a long-standing business that has provided good-quality jobs for generations. I had Siemens in my constituency. At one time, I had a number of miners who worked in local pits in north Nottinghamshire and in Derbyshire. In due course, those pits closed, as did Siemens.
When we talk about Brexit, people extrapolate all sorts of things from the vote. One thing that definitely occurred—I know that it occurred for people in my constituency—was that a number of people voted leave because they felt left behind by what we call this global world and the global way of doing business. These people used to work, often down the pits in Nottinghamshire—I am from Worksop, so I understand the sort of lives that miners had and I have no romantic attachment to the coal mining industry—and in factories such as Siemens in high-quality jobs. Those jobs invariably paid good money, but they also added even more value to people’s lives. It was not just about the fact that it was work, which is, in itself, the right thing to do; it was not just the wages, which, in the deep coal mines in Nottinghamshire and at Siemens, were very good; and it was not just the trade and the skills that they conveyed—it was also that feeling of community and being valued. It was about all those great traditional British manufacturing values, which, in truth, began to disappear through the ’80s and into the ’90s. What the great Japanese car manufacturers brought back was much of that high-valued, highly skilled, super-effective and super-efficient manufacturing industry. That practice was not just confined to the automotive sector, because it runs right across many other sectors in manufacturing, which makes up 20% of our economy.
I say to all Conservative Members, “Shame on you if you have a manufacturer in your constituency that you have not been to to understand how a modern manufacturing business works and how it needs frictionless trade for the supply chains to work. Shame on you if you have not taken the opportunity to go to those places that might be outwith your constituency, but where your constituents work.” I say that very gently—
Anna Soubry
I will take my hon. Friend’s intervention in a moment, but not yet.
I say that very gently to my hon. Friend the Member for Mansfield (Ben Bradley), as many of his constituents work in exactly the sorts of manufacturing industries that I am describing. No doubt, like a number of my constituents, some of them work at Toyota. When Members see how these wonderful manufacturing businesses work—whether it is ceramics, cars, automotives, potteries or glass—they will understand the importance of frictionless trade. What that means in the real world is that, at Toyota in Burnaston, parts arrive on lorries, which have come through the tunnel and straight up the motorway, and within three hours they are on the assembly line. It is an astonishing and an incredible achievement that this country should be proud of. It is part of Margaret Thatcher’s legacy—
Anna Soubry
I will take my hon. Friend’s intervention in a moment.
It was Margaret Thatcher who, as a proud Conservative, championed free trade. I am a Tory. I believe in business. I believe in capitalism and in enterprise. I believe in our economy as it provides jobs and prosperity. It is indeed an engine of aspiration for so many of my constituents who want to see themselves going into apprenticeships at Rolls-Royce as much as they would like to go the finest universities.
Sir Edward Leigh
I knew Margaret Thatcher; I worked for Margaret Thatcher. My right hon. Friend ain’t no Margaret Thatcher.
Anna Soubry
I do not pretend to be able to walk in Margaret Thatcher’s boots, but I have read her speeches about the advantages of the single market. She was a huge champion—probably the biggest champion—of the single market. It was Margaret Thatcher who went over to Japan and promised the Japanese that our country would always stay in the single market. On that basis, Japanese business invested billions of pounds in this country.
My hon. Friend attacks me in a wholly unnecessary and really rather foolish way, but I hope that he will speak freely and honestly in our debate and give his assessment of what is facing our country if we do not get Brexit right. It is all well and good for Members to have their ideologically-driven, hard Brexit ideas when they are not able to face up to the reality of what they mean for people in my constituency and the rest of our country.
Sir Desmond Swayne (New Forest West) (Con)
Will my right hon. Friend give way?
Anna Soubry
In a moment.
The reality, which is faced in the White Paper, is that if we do not deliver frictionless trade in the way in which companies such as Toyota need and demand, they will simply not be able to operate. Some 81% of Toyota cars produced at Burnaston are exported into the European Union. And before anybody says, “Well, there will be new markets”—those unicorns that our Government will be chasing in new deals—please understand how the modern manufacturing industry works. Companies such as Toyota already make cars in other parts of the world to satisfy and supply the local market.
Anna Soubry
I will give way to my right hon. Friend the Member for Loughborough and then I will come down the row.
Nicky Morgan
Does not the intervention on my right hon. Friend made by our hon. Friend the Member for Gainsborough (Sir Edward Leigh) show what is the matter with this Brexit debate? Rather than talking about the detail and the risk to thousands of jobs across the country in our manufacturing sector—the Conservative party has championed that sector since 2010—he prefers to trade insults and trade on personalities.
Charlie Elphicke
I have been listening with great interest to my right hon. Friend’s speech. I am a former remainer and fellow believer in free enterprise, which was why I set out a detailed plan on how we can have frictionless trade using the World Trade Organisation trade facilitation agreement that was entered into in 2017.
My constituents have some questions that I would like to pose to my right hon. Friend. Why is it that so many lorries come in through Dover laden with goods yet so many return empty? Why is there a £100 billion trade surplus for the European Union? Why should we give the European Union access to our goods market but not insist on access to our financial services market after we leave the European Union?
Anna Soubry
I do not wish to be rude to my hon. Friend, but that really is the stuff of madness. Of course we need to export more, but here is the real question that he should be asking. At the moment, a lorry that comes in from the European Union through Dover will take, at the most, two minutes to go through. If it comes from outside the European Union, the process takes 20 minutes at the least, and at the most—and more typically—it takes two hours. How does that transpose to the manufacturing sector and to the Toyota workers outside Derby—some 3,000 people, with three to five times as many in the supply chains?
I say to my hon. Friend that this, Sir, is the real world. In the real world, when Toyota makes an order for car seats, they are delivered absolutely ready on to the production line within four hours of the order being placed. If we do not deliver frictionless trade, either through a customs union or some magical third way that the Prime Minister thinks she can deliver—good luck to her on that—thousands of jobs will go, and hon. Members sitting on the Government Benches, in private conversations, know that to be the case. What they have said in those private conversations is that the loss of hundreds of thousands of jobs will be worth it to regain our country’s sovereignty—tell that to the people who voted leave in my constituency. Nobody voted to be poorer, and nobody voted leave on the basis that somebody with a gold-plated pension and inherited wealth would take their jobs away from them.
Sir Desmond Swayne
I have a very successful manufacturer in my constituency abiding by the very disciplines that my right hon. Friend has, rightly, been so effusive about. Imagine, then, my surprise when I discovered that the proprietor and chief executive of this organisation, Col-Tec—one Mike Bailey—was to be my opponent as the UKIP candidate in the New Forest West division.
Sir Bernard Jenkin
I think the point that my right hon. Friend did not want to take is that there are plenty of businessmen who are in favour of leaving the European Union.
The point that I wanted to raise with my right hon. Friend is that her whole argument is passionately based on the fallacy that one cannot have just-in-time supply chains crossing international customs frontiers. In fact, that is the way that most of the rest of the world trades. At Toyota in her own constituency—I met Toyota last week—quite a substantial proportion of its componentry arrives from outside the European Union to be bolted on to its cars. She is putting up these completely false fears that just-in-time supply chains are threatened by trading across customs frontiers.
Anna Soubry
I have to say to my hon. Friend that that is absolute codswallop. When I went to Toyota, we were shown exactly the places where the parts had come from. For example, some parts had come from Japan. There was a special arrangement with Japan whereby the parts come into the factory and sit in a bonded warehouse. Those parts number less than 1% of the total. Toyota has 2.5 million parts coming into that factory, and the vast majority come from the European Union—it relies on frictionless trade.
With great respect to my hon. Friend, he is somebody who makes the case that we should be a member of the World Trade Organisation. Let us just get this one straight. If our country joins the World Trade Organisation—[Interruption.] Well, we are a member through our membership of the European Union. If we are a member of the WTO in our own right, we will have to abide by its rules, which say that every member must secure its borders—I repeat, must secure its borders. That does not just mean that our country, when we leave the European Union, must secure its borders, but that the European Union, whether it likes or not, must secure its borders. What does that mean? There will have to be a hard border between Northern Ireland and the Republic of Ireland. It is dishonest and disingenuous for people to stand up and make out that something other than that is the reality.
The White Paper faces up to Brexit reality, and that is what Conservative Members must now do. We have to face that reality, just like I have had to face the reality that we are leaving the European Union. Hon. Members have to do the right thing by their constituents and put trade and business at the heart of Brexit.
Vicky Ford (Chelmsford) (Con)
I want to go back to the point about enforcing our border. Some people say that, if we were trading under WTO rules, we would not need to have a border in Ireland, but under the WTO’s most-favoured-nation rules, if we did not enforce the border in Ireland, we would be in breach of our agreements with other parts of the world. We would have no right to say, “No border.” Furthermore, if Ireland did not enforce the border with the rest of the UK, it would be in breach of its obligations to the EU, and if the EU did not require Ireland to respect the border, it would be in breach of its obligations across the world. So I thank my right hon. Friend for making that point so clearly.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
I have heard exactly the same points from businesses in my community. I have heard the same points about the Northern Ireland-Ireland border, too. That is why I favour staying in a customs union. The White Paper is full of magical thinking, but the amendments tabled by some in the right hon. Lady’s party directly contradict what is in the White Paper, because what they really want is a reckless no deal Brexit in which we crash out, with all the damage that will cause.
Anna Soubry
I completely agree. I say to my Government that they are in grave danger of not just losing the plot but losing a considerable amount of support from the people of this country unless we get Brexit right. The people who put their names to those amendments—notably new clause 36 and amendment 73—did so not to be helpful to the Government and to support the White Paper. We know that from their public proclamations, in which they have tried to trash the White Paper.
I made it clear to the Whips and to—well, actually, to the Financial Secretary to the Treasury, for whom I have a lot of time because he is a very good Minister, a very good man and a very good constituency MP. I say that because I have been to his constituency—
Anna Soubry
For the record, that was said by my hon. Friend the Member for Huntingdon (Mr Djanogly). If anyone else had said it, I would have been very rude. [Interruption.] Sorry. Scrub that; it was my right hon. Friend the Member for Wantage (Mr Vaizey)—ever the trouble maker.
This is really serious. I told the Minister that I would not press my amendments to a vote. That is not because I lack courage—in fact, given events, I would like to think I have a bit of courage. Some say I do not have a fear gene at all. Just to remind hon. Members, three people have received custodial sentences for the death threats I have received. I am getting a bit tired of being called a traitor. Certain people on these Benches support a newspaper that, disgracefully, had the temerity to suggest that the Prime Minister of our country might in some way have committed treason by the production of this White Paper. That is outrageous. Right hon. and hon. Members on these Benches really need a bit of a reality check, not just on Brexit but on the way this party is conducting itself and on who they choose to call their friends.
Let me return to why I will not press my amendments to a vote.
Madam Deputy Speaker (Dame Eleanor Laing)
Order. Before the right hon. Lady returns to the substance of her remarks, I just point out to her that she has already had 21 minutes of the debate, and—[Hon. Members: “More!”] Order. This is not a music hall. The right hon. Lady is perfectly in order—she has an awful lot of things to deal with and she has taken a lot of interventions—but I know that she will quite soon begin to come to a peroration.
Anna Soubry
By remarkable coincidence, Madam Deputy Speaker, I am coming to the conclusion of my remarks. I want to explain why I will not press my amendments to a vote, as I indicated to the Minister last week. The reason is the production of the White Paper.
I will be very frank: the White Paper does not go as far as it should—it is silent on services, which make up 80% of our economy—but I welcome it because it absolutely marks that our Prime Minister understands the needs of British business, in particular manufacturing businesses, and is determined to do the right thing. She has come up with this third way. Whether she can achieve it remains to be seen, but I decided not to press my amendments to a vote because of my support for the White Paper and my desire to give that third way a chance.
Having done that, I believed, as a pragmatic, reasonable, moderate Conservative, that I had done the right thing by my Prime Minister and, as much as anything else, by my country. Imagine, therefore, my profound disappointment that the Government today, for reasons I can just about understand, decided to accept four amendments, two of which are not controversial but two of which—new clause 36 and amendment 73—seek to wreck and undermine this.
Mr Dominic Grieve (Beaconsfield) (Con)
Is not one of the features of these two amendments the fact that they would not do what their proposers seek them to do? The fact that the Government have chosen to accept amendments that are unnecessary and useless shows that the only intention behind their tabling was malevolent? The fact that they are being maintained at the present time is also an act of malevolence towards the Government by the proposers.
Anna Soubry
I completely agree with my right hon. and learned Friend. Members on the Government Front Bench, and indeed across the House, should be hanging their heads in shame. This is the stuff of complete madness. The only reason the Government have accepted the amendments is that they are frightened of around 40 Members of Parliament—the hard, no deal Brexiteers —who should have been seen off a long time ago. These people do not want a responsible Brexit; they want their version of Brexit. They do not even represent the people who actually voted to leave. The consequences are grave, and not just for this party, but for our country. One has to wonder who is in charge. Who is running Britain? Is it the Prime Minister, or is it my hon. Friend the Member for North East Somerset (Mr Rees-Mogg)? I know where my money is at the moment.
Stephen Doughty
What has really been going on here is that some of these extreme individuals have been threatening the Government, trying to hold them hostage, and saying that they will vote against Third Reading and bring the Government down, to get these bizarre, contradictory amendments through.
Anna Soubry
The hon. Gentleman is absolutely right. It is disgraceful, because this White Paper is a genuine attempt by our Prime Minister to heal the divisions in our party, and indeed the divisions in our country, and take us to a smooth and sensible Brexit that delivers for everybody.
Mr Kenneth Clarke (Rushcliffe) (Con)
Does my right hon. Friend agree that, if the Government were guaranteed the support of the Labour party and the Scottish National party against these wrecking amendments, we could finally reveal what a tiny minority of the House of Commons is trying to hold us all to ransom over a reasonable deal with the European Union?
Anna Soubry
My right hon. and learned Friend is right, as ever.
The truth is that both main political parties are now in the grasp of the few who falsely claim to speak for the many. A lack of ability, or perhaps courage, the over-liking of the safety and sanctity of ministerial office or, frankly, just a quiet life, on whichever side of the House, and a guaranteed income for a loyal Back Bencher with a handsome majority, mean that our country is hurtling not just towards the extremes of British political life, but over the Brexit cliff, which the overwhelming majority of leavers did not vote for—indeed, they were promised the precise opposite.
The time has come for the nonsense to be stopped. The time has come for people to show courage and do the right thing by our country. We are leaving the European Union, but we have to leave in such a way that protects jobs and prosperity—and peace in Northern Ireland—for everybody in this country. It is time for people to put aside the ideology and the nonsenses that invariably come from not inhabiting the real world. Let us face up to reality, as this White Paper seeks to do, and reject these two ludicrous amendments that the Government have agreed to. In due course, let us wake up to the further reality: we will end up in the single market and the customs union; the only question is when.
Mr Chris Leslie (Nottingham East) (Lab/Co-op)
I commend the right hon. Member for Broxtowe (Anna Soubry) for the passion with which she has spoken. She spoke authentically about the care and attention that she has taken to look into the supply chain issues, the just-in-time delivery systems that are the foundation of modern manufacturing in our country. She was not taking an ideological view, which certain Conservative Members, who may guffaw at that, might take, but thinking about the economy: our constituents’ jobs and all the prosperity and tax revenues that pay for the vital public services that we need to keep this country going. The national health service, the education system, housing and local government all depend on a healthy, vibrant economy.
Mr Davis
My right hon. Friend is exactly right. It is an issue that I will return to in a second, but before I do I want to make a point about friction. The presumption in all this is that we have a magical, frictionless system at the moment. Actually, we will have seen on our television screens that that is not true. This entire House will have watched Operation Stack in progress over various years. Operation Stack is what we do when one of the ports gets locked up for one reason or another—a strike in France or whatever. It has been operated 74 times in 20 years. In 2015, it took up 31 days of friction, and our businesses—the just-in-time businesses and the perishable goods businesses—all coped with it, so let us not frighten ourselves in doing this negotiation. Nobody wants it and nobody likes it, but they cope with it. My hon. Friend the Member for Dover (Charlie Elphicke) pointed out that with World Trade Organisation facilitation, we will actually minimise the friction on trade through these ports, as was reinforced by my right hon. Friend the Member for Wokingham (John Redwood).
Secondly, while people understandably focus on some of the pressure points—most particularly Dover, which we heard about a second ago—they forget that there is strong competition between the ports on the North sea and the ports on the channel. Zeebrugge, Antwerp and Rotterdam all want to increase their throughput at the cost of the Calais-Dover crossing. They are already preparing for increases in throughput in their own areas when we are outside the EU and preparing for the increase in work—because there will be some increase in work—but again, as my right hon. Friend said, it will not happen at the border. It will happen before they get there or after they pass through it, so our so-called dependency on French ports will turn out to be illusory.
Thirdly, in support of the arguments that any friction at the border is unacceptable we hear lots of talk about supply chains. We had it from my right hon. Friend the Member for Broxtowe who proposed this new clause. The simple truth is that this ignores the fact, as my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) pointed out, that lots of international supply chain operations operate across borders where there are customs, tariff and currency arrangements. I happen to know one of them very well, because I operated a business across just such a border myself—between Canada and the USA. [Hon. Members: “Thirty years ago.”] I went back last year.
Mr Davis
No, I will not give way.
I went back last year to look at it again, and yes it was 15-year-old technology. It could be better now; it could be faster. What happens in Detroit, the centre of the American motor industry? In Ontario, across a very difficult and constrained border, tougher than Dover, there is an entire industry supplying parts, components and engines for that motor car industry. It operates across a border that has tariffs on it, too.
Mr Davis
No, if my hon. Friend will forgive me. I am short of time.
The simple truth is they operate even where there are tariffs, and we are proposing a non-tariff arrangement—there would be no tariffs here; the primary concerns will not be the collection money but other things.
Mr Davis
No, if my right hon. Friend will forgive me.
The issues that remain at the border will depend on the customs policy we decide on, which very clearly will alter how that border operates. It will include rules of origin, as has already been pointed out; tariff-paid status, if we are in the future customs arrangement, which is more difficult than rules of origin; and regulatory compliance. None requires action at the border. All can be dealt with by electronic pre-notification or pre or post-audit at either origin or destination.
Without doubt, the most difficult issue in the negotiations as they relate to borders has been Northern Ireland. There is no way, however, that a UK Government are ever going to install a hard border in Northern Ireland—that is as plain as a pikestaff. No UK Government would risk the peace process, which has been going on for decades. Neither would the Irish Government. I cannot imagine in a century that an Irish Government would do that either. What many people forget, however, are that there is already a border there—there is a currency border, a VAT border, an excise border, and there are other tax borders. They are operated north and south of the border by the UK and the Irish tax and customs collection organisations, operating together using intelligence- led intervention.
Much is made of the 300 border crossings. One of the outstanding issues with being outside the customs union is, as somebody said, the issue of rules of origin, but in Northern Ireland, while there may be 300 border crossings, there are only six ports. Rest-of-world imports can actually be surveilled and controlled very straightforwardly. This issue, which has become much more difficult since it was politicised—it was actually working quite well in the negotiations before it was politicised—is eminently soluble, by technical means and co-operation between the two states.
Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)
It is interesting to follow the former Brexit Secretary and to reflect on the speech he has just given. It explained why he resigned from the Government but, in the end, it just clashes with reality—that is the unfortunate detail of the evidence he has put to the House today.
I shall speak in support of new clause 1, but also to my new clause 6 and amendment 9, which relate to conducting an impact assessment on the effect of leaving the common external tariff. I shall also speak against amendment 73 and new clause 36. We have heard why the former Brexit Secretary believes that any kind of customs union would somehow be bad for Britain and why we would be better off without it, and I will first address the fallacies in his argument. He was extraordinarily dismissive of the impact of checks at the border and of delays and additional costs, particularly for manufacturers and just-in-time production.
I make no bones about the fact that I am speaking strongly in support of manufacturing industry in my constituency. I will resist the temptation to go off on a tangent about Haribo and the Starmix I am sometimes allowed to test when I go to visit, but people there do tell me how important it is that they can bring ingredients to and fro smoothly across the border and talk about the impact of such delays.
Anna Soubry
Did the right hon. Lady notice that there was no detail about the reality of the America-Canada border, which took 10 years to construct, cost £10 billion, deals with facial recognition and involves 100 companies in the automotive sector of Detroit and nothing more? Does she think that such a model would not provide the frictionless trade that our manufacturing sector needs?
Yvette Cooper
I completely agree with the right hon. Lady. The former Brexit Secretary seems to be arguing that because companies trade across borders that involve customs checks, we should rip up our customs-free borders. He is saying that because those trades take place, it is okay somehow to add costs to our trading process. Why on earth would we do that? Why on earth would we add burdens to businesses that do not face them at the moment? Why on earth would we make the process difficult and more costly for them? It is not that we think all trade will stop—of course it will not—but the point is that that trade will become more costly and burdensome, and our businesses and manufacturers will be at a disadvantage compared with their European neighbours and competitors. That is unfair on our manufacturers, which we in this House should be standing up for. I certainly believe in standing up for Yorkshire manufacturing.
The former Brexit Secretary also seemed to be arguing that, because we coped with Operation Stack before, let us have more delays again. Yes, we can cope, but Operation Stack cost businesses coping with those long delays a fortune.
Sir Bernard Jenkin
My right hon. and learned Friend, who seems to be becoming a remainer again, judging from his article in the Evening Standard—
Sir Bernard Jenkin
No, that is what he said. He said that we will have to rethink Brexit completely if we cannot get a satisfactory arrangement. That is the direction he is going in. I respect his view, but throwing around insults like “useless” is not elevating the debate.
My amendment 72 simply removes from the Bill an extraordinarily powerful Henry VIII provision that we should be signed up to a customs union with the European Union simply by order. Following the amendment that my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) tabled to clause 9 of the European Union (Withdrawal) Bill, I thought that what is sauce for the goose is sauce for the gander. I do not suppose that I shall hear him speak against my amendment, because it puts Parliament back in control of the decision to join a customs union with the European Union. That is what I think we should do.
Anna Soubry
New clause 36 and amendment 73 are designed not to help the White Paper, but to wreck it. I am going to try to help the White Paper, which is why I seek leave to withdraw new clause 1.
Clause, by leave, withdrawn.