Draft Customs Safety and Security Procedures (EU Exit) Regulations 2020

Jesse Norman Excerpts

Thursday 10th December 2020 General Committees

[The Chair]

Before we begin, I remind Members to observe social distancing. You are all sitting in places that are marked, so I thank you for that. Hansard colleagues would be grateful if Members sent their speaking notes to [e-mail]. I ask you to observe social distancing particularly when you are leaving. Thank you.

[The Financial Secretary to the Treasury (Jesse Norman)]

I beg to move,

That the Committee has considered the draft Customs Safety and Security Procedures (EU Exit) Regulations 2020.

It is a delight to see you in the Chair, Ms Nokes, and to serve under you.

As the Committee will be aware, this statutory instrument is technical and will give the Government a tool they may need to alleviate any disruption at the border that arises after the end of the transition period. The instrument must be understood in the context of the current regime for managing the safety and security risk of goods entering and leaving the United Kingdom. The UK is guided in this regard by the World Customs Organisation’s SAFE framework of standards to mitigate risks associated with the import and export of goods. SAFE stipulates that before goods arrive in or depart from a territory, data must be collected and risk assessed by customs authorities. This data is submitted in the form of entry and pre-departure declarations. These declarations are currently managed through the Union customs code, retained in UK law after the end of the transition period by the European Union (Withdrawal) Act 2018.

While we have been part of the EU’s safety and security zone, these declarations have been required only when goods are moving into or out of the EU. When the transition period ends on 31 December 2020 goods moved between Great Britain and the EU as well as the rest of the world will require these declarations. As part of the staging in of customs controls, the Government have waived for six months the requirement for the submission of an entry summary declaration for movements into Great Britain from the EU or another territory where such a declaration is not currently required.

Before goods are moved out of the country, carriers are obliged to submit safety and security information to Her Majesty’s Revenue and Customs for risk assessment. As well as managing risks that involve the movement of weapons and illicit goods, the information is used to regulate other international obligations, such as the rules governing the movement of live animals. The information is normally contained in a customs export declaration. In cases where a fiscal declaration is not required, such as businesses repositioning empty trucks or packaging, a stand-alone exit summary declaration is required.

The SI will give HMRC commissioners the ability during the six months of the staging-in period to publish public notices waiving the requirement for safety and security declarations for goods exported from Great Britain. A public notice could also be used to alter the pre-departure timing requirement for the submission of declarations. The powers can be used only to alleviate border disruption that may arise, and only during the staging-in period. The powers can be deployed in a targeted way: for example, the Government could use them to waive the safety and security export declaration requirement for a specific sector, or a port, or for a given time period. The powers would be used only where it was necessary to ensure the smooth flow of goods across the border. The Government would consider the balance of risks of border security with the impact on border flow before introducing a waiver. The Government will update Parliament as appropriate when making use of the powers, if any are in fact used.

The Northern Ireland protocol means that there are no safety and security requirements for goods moved between Northern Ireland and the EU. Under the protocol, EU UCC—Union customs code—rules will apply in Northern Ireland. The public notice powers provided by this instrument would not affect safety and security requirements for goods exported from Northern Ireland. The movement of goods between Northern Ireland and the rest of the world will be subject to safety and security requirements.

As I have said, the Government would use these powers only where absolutely necessary to preserve the smooth flow of goods at the border and after due consideration of any risks arising from their use. The powers, which are time limited and can be deployed in a targeted fashion, will help to give the Government the appropriate ability to respond to manage disruption at the border if that should arise at the end of the transition period. I commend the regulations to the Committee.

--- Later in debate ---

[Jesse Norman]

I thank the Opposition spokesmen for their comments. The right hon. Member for Wolverhampton South East says this is not technical. Of course, by “technical” I do not mean that the law may not have some impact. Of course, this is a power that we do not anticipate necessarily having to use; it is a tool that the Government think is advisable to be used in some very constrained and particular circumstances in the event of unanticipated disruption. We are going through a major change in our trading arrangements. It is sensible to make contingency arrangements.

The right hon. Gentleman may have forgotten that when it comes to safety and security declarations, data is not gathered by the UK in regard to trade with the EU, because we have been part of the EU internal customs and internal market. From that point of view, nothing changes. He and others have asked whether there will be some great compromise to security. We do not anticipate a great compromise to security.

[Mr McFadden]

The Minister has just said that nothing changes in terms of relations with the EU because we are part of the single market. From 1 January, we will not be part of the single market so quite a lot changes.

[Jesse Norman]

No, what I have said is that, since we do not gather data at the moment, what we are doing is continuing a system that already exists for a period of time—or we would be if we put in place these powers—and that does not represent a change from what we do at the moment as we do not gather the data at present. As I have already said, our trading arrangements of course do significantly change.

The right hon. Gentleman asked about the Home Office, and I can reassure him that of course these measures are developed in consultation and consideration and discussion with the Home Office. The SNP spokesman, the hon. Member for Paisley and Renfrewshire North, seemed to be having a few operational issues with his own handwriting—I am not quite sure if that is true—so he is well placed to speak on operational issues. Let me just say one thing: as far as I can tell, the numbers that he quoted were from external organisations, the NAO and so on. It is for them to comment on whether the numbers they come up with should be updated. From the Government’s standpoint, the numbers are as they have been published. With that in mind, I invite the Committee to support the motion.

[Mr McFadden]

The Minister has not answered a couple of questions that I asked. One was whether he can guarantee that there will not be an extension of these provisions beyond the first six months of next year, and the other was the question of weapons that he mentioned in his opening remarks. Can he explain exactly how these regulations will affect the export of weapons?

[Jesse Norman]

Sure. What I was saying, as the right hon. Gentleman will recall, as regards duration is that they last for six months. Of course, to seek a guarantee in such circumstances is a classic political request. No guarantees can be given, but we certainly do not anticipate extending the regulations. They are specifically designed to be a contingency tool to be used in specific circumstances, for specific purposes, and for a time-limited period.

In relation to weapons, all I said was that the existing arrangements had in part the goal of monitoring the transfer of weapons. As I have said, data gathering does not at present exist on the safety and security declarations, and that will not change as a matter of fact for a period of time, but of course Border Force and other agencies that are concerned with the flow of goods across the border continue to be engaged, and from that perspective we think that the border remains well defended and well supported. Of course, we have made significant infrastructure investments in order to make sure that that is the case.

Question put and agreed to.

11.50 am

Committee rose.