The Taxation (Cross-Border Trade) Bill and the Trade Bill completed their Commons stages on 16 and 17 July respectively.
On the Taxation (Cross-Border Trade) Bill, four non-government amendments tabled by a pro-Brexit group of MPs were agreed:
a new clause, ‘Prohibition on collection of certain taxes or duties on behalf of territory without reciprocity’, will prevent the UK collecting VAT, customs or excise duties on behalf of the EU, unless the EU also collects such duties due to the UK on a reciprocal basis;
a new clause, ‘Single United Kingdom customs territory’, will make it unlawful for UK to create separate customs territory for Northern Ireland;
a new subsection was added to Clause 31 (Territories forming part of a customs union with UK), providing for any arrangements involving import duty to be approved by Parliament in the event that a customs union is formed between UK and EU; and
paragraph 14 was removed from Schedule 8, which would have inserted a new section into VATA 1994 allowing HMRC to make regulations for charging import VAT in the event of a customs union being formed under Clause 31.
Several government amendments were made regarding the setting of import and export duty rates and imposition of anti-dumping duties, as well as the removal of certain provisions which give effect to EU law in relation to VAT and excise duty.
The Taxation (Cross-Border Trade) Bill will now go for consideration by the House of Lords, scheduled for 4 September.
On the Trade Bill, a new clause was agreed, obliging the UK to take ‘all necessary steps’ to participate in the regulatory network operated by the European Medicines Agency after leaving the EU. The clause, which had been tabled by a group of pro-European MPs, was put to a vote by the government, who were defeated for by four votes.
Much media coverage was given to another proposed amendment tabled by pro-European MPs, for the UK to stay in ‘a customs union with the EU’ if no free-trade agreement could be reached. This amendment was defeated by six votes.
The Trade Bill will now go for consideration by the House of Lords, on a date to be announced.
The Taxation (Cross-Border Trade) Bill and the Trade Bill completed their Commons stages on 16 and 17 July respectively.
On the Taxation (Cross-Border Trade) Bill, four non-government amendments tabled by a pro-Brexit group of MPs were agreed:
a new clause, ‘Prohibition on collection of certain taxes or duties on behalf of territory without reciprocity’, will prevent the UK collecting VAT, customs or excise duties on behalf of the EU, unless the EU also collects such duties due to the UK on a reciprocal basis;
a new clause, ‘Single United Kingdom customs territory’, will make it unlawful for UK to create separate customs territory for Northern Ireland;
a new subsection was added to Clause 31 (Territories forming part of a customs union with UK), providing for any arrangements involving import duty to be approved by Parliament in the event that a customs union is formed between UK and EU; and
paragraph 14 was removed from Schedule 8, which would have inserted a new section into VATA 1994 allowing HMRC to make regulations for charging import VAT in the event of a customs union being formed under Clause 31.
Several government amendments were made regarding the setting of import and export duty rates and imposition of anti-dumping duties, as well as the removal of certain provisions which give effect to EU law in relation to VAT and excise duty.
The Taxation (Cross-Border Trade) Bill will now go for consideration by the House of Lords, scheduled for 4 September.
On the Trade Bill, a new clause was agreed, obliging the UK to take ‘all necessary steps’ to participate in the regulatory network operated by the European Medicines Agency after leaving the EU. The clause, which had been tabled by a group of pro-European MPs, was put to a vote by the government, who were defeated for by four votes.
Much media coverage was given to another proposed amendment tabled by pro-European MPs, for the UK to stay in ‘a customs union with the EU’ if no free-trade agreement could be reached. This amendment was defeated by six votes.
The Trade Bill will now go for consideration by the House of Lords, on a date to be announced.
