Repayment, collection and backdating of Trade Remedies duties
Published 23 March 2023
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This publication is available at https://www.gov.uk/government/publications/trade-remedies-reimbursements/repayment-collection-and-backdating-of-trade-remedies-duties
Who is likely to be affected
International and domestic participants in trade remedy reviews, including but not limited to individuals, manufacturers, importers, downstream users, trade organisations, trade unions and public bodies.
General description of the measure
These provisions make changes to the existing trade remedies legislation to allow for the reimbursement of duties to businesses where Secretary of State decisions mean that trade remedies measures should be backdated.
The provisions also allow for legislation to make businesses liable for duties that are suspended during a review, but where a subsequent Secretary of State decision means that those duties should be collected.
These provisions do not, in themselves, change the current trade remedies framework as it applies to businesses, instead they provide legal powers for the government to make legislation to allow for the reimbursement or collection of monies under our trade remedies framework in certain circumstances.
Policy objective
These technical provisions are intended to ensure that the UK’s trade remedies framework remains fair, proportionate and transparent. They serve to provide a framework through which trade remedies duties may be repaid to businesses, or outstanding duties collected from businesses, as appropriate.
Background to the measure
These provisions amend the Taxation (Cross-border Trade) Act 2018 to provide powers for the Secretary of State to make secondary legislation relating to the repayment or collection of duties following the review of the application of a trade remedies measure.
Detailed proposal
Operative date
The amendments to the Taxation (Cross-border Trade) Act 2018 made by paragraphs 5(1)(a)(ii) and 5(1)(b)(iv), and paragraph 16 of Schedule 16 of this Act take effect from the date of Royal Assent of this Act.
Secondary legislation made under these amended provisions will be made in due course.
Current law
The current law, to be amended by these provisions, can be found at paragraphs 21(4) and (6) of Schedule 4 to the Taxation (Cross-border Trade) Act 2018.
Proposed revisions
Paragraph 5 of Schedule 16 amends paragraph 21 of Schedule 4 to the Taxation (Cross-border Trading) Act 2018.
Sub-paragraph 5(1)(a)(ii) adds a new sub-paragraph (e) at the end of sub-paragraph 4 of paragraph 21 of Schedule 4 to the Taxation (Cross-border Trading) Act 2018. This new sub-paragraph (e) provides powers for the Secretary of State to make secondary legislation relating to the repayment or collection of duties following the review of a trade remedies measure.
Specifically, the new sub-paragraph (e)(i) provides for secondary legislation to enable the Secretary of State to make a new public notice that treats a measure as having expired on the date set out in the existing public notice.
The new sub-paragraph (e)(ii) provides for secondary legislation to enable the repayment of duties collected from businesses during the course of a trade remedies review, if the collection of duties was not suspended during the review period and if the outcome of the review is that these duties should be reimbursed.
The new sub-paragraph (e)(iii) provides for secondary legislation to make businesses liable for the payment of duties if collection of these duties is suspended for the duration of a trade remedies review and the outcome of the review is that these duties should be payable.
Sub-paragraph 5(1)(b)(iv) adds a new sub-paragraph (c) at the end of sub-paragraph 6 of Schedule 4 to the Taxation (Cross-border Trading) Act 2018. This new sub-paragraph (c) provides for the date of effect of a variation or revocation of a trade remedies measure to be backdated to before the date of the TRA’s recommendation or the decision of the Secretary of State. This allows, for example, for the date from which reimbursable duties should be calculated to be set at the historic date the measure was due to expire.
Paragraph 16 provides powers for the Secretary of State or The Treasury to make secondary legislation to allow for the backdating of trade remedies exemptions.
Summary of impacts
Exchequer impact (£m)
| 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | 2026 to 2027 | 2027 to 2028 |
|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil |
The measure is expected to have no exchequer impact.
Economic impact
This measure is not expected to have any significant macroeconomic impact.
Impact on individuals, households and families
It is expected that for the most part, only the businesses involved in a trade remedies review will be affected by the measure. This change relates to the collection or reimbursement of duties in specific circumstances and is therefore expected to have no (or negligible) direct impact on individuals or households.
The impact on individuals or households will be considered on a case-by-case basis during the investigation on any specific measure.
The measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
It is not anticipated that there will be impacts for those in groups sharing protected characteristics.
Impact on business including civil society organisations
This measure is expected to benefit business by ensuring clarity and certainty regarding the reimbursement or collection of duties following completion of a trade remedies review.
The provisions will allow further secondary legislation to be made, with the following impacts:
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When the expiry of a trade remedies measure is backdated, businesses can apply for a reimbursement of duties.
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When a business applies for an exemption review for a trade remedies duty and the duty is not suspended for that business for the duration of the review, if an exemption is ultimately granted, the duties paid during the course of the review may be reimbursed.
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When a business applies for an exemption review for a trade remedies duty and the duty is suspended for that business for the duration of the review, the business will remain liable for the suspended duties if the exemption is not ultimately granted.
Operational impact (£m) (HMRC or other)
Given this measure may require increased resourcing to deal with requests for reimbursement and the pursuit of outstanding duties, there is a potential operational impact on HMRC.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure will be kept under review through communication with affected groups.
Further advice
If you have any questions about this change, please contact the Trade Remedies Policy Team at the Department for Business and Trade via email: [email protected]