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Foreword
This notice cancels and replaces Notice 375 (January 2010). Details of any
changes to the previous version can be found in paragraph 1.2 of this
notice.
1. Introduction
1.1 What is this notice about?
This notice explains Tariff Quotas (TQs) and how by claiming them you can
reduce your liability to:
Customs duty
agricultural levies and
other Common Agricultural, Policies (C.A.P) charges.
It also explains how to claim a first come, first served TQ and how we process
your claim.
Please ensure that you do not confuse TQs with Import Licence Quotas. Both
types of quota cover specific goods and can relate to specific countries of origin.
The important difference is that TQs allow reduced rates of duty to be claimed,
whilst Import Licence Quotas are a means of monitoring and limiting the actual
amount of goods imported - regardless of the rate of duty claimed.
You can get details of Import Licensing controls from the Department for
Business Innovation and Skills (BIS) formally Department for Business Enterprise
and Regulatory Reform (BERR), phone: 020 7215 5059, Fax 020 7215 2234.
1.2 Whats changed?
The notice has been updated to include some minor changes to the notice.
This notice is available on the internet only.
1.3 What are Tariff Quotas?
Tariff Quotas are a European Union (EU) system to allow the importation of
limited amounts of specific goods (sometimes from specific countries) at a rate of
duty lower than would otherwise apply.
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The amount, which may be imported, can be expressed in units of:
quantity
value
volume
weight or
length
and the period during which the TQ is available can be limited.
Though all TQs allow a preferential rate of duty, they may or may not form part
of the EC preferential trade agreements or arrangements with third countries.
Most TQs operate on a first come, first served basis (FCFS) in which you or your
agent/freight forwarder must make a claim to the quota on the customs
declaration covering the release of goods to free circulation. Other TQs are
licence based and access to them is dependant upon you obtaining an import
licence prior to importing the goods concerned.
There is also more general information on TQs in the Tariff, Volume 1, Section 8.
1.4 How do I know if the goods I import are
covered by a TQ?
The HM Revenue & Customs Tariff, Volume 2 indicates whether individual goods
are covered by a TQ. If you know the correct tariff classification of your goods
you can check against the relevant commodity code in the schedule in Volume 2.
If a TQ may apply to those goods, column 3 will indicate this by showing TQ
against that code.
You will then need to examine the additional information at the end of that Tariff
Chapter to see which TQ applies to the particular goods you are importing - not
forgetting to check the country of origin. If your goods are listed you will need to
note the 6-digit Tariff Quota Order Number (TQON) that is shown in column 4 of
the additional information as this will have to be included in the customs
declaration regardless of whether the goods are covered by a licence based
quota or you are making a claim to a first come first served quota.
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If in the case of Chapters 1-24, column 4 shows a Tariff Quota Order Number,
beginning 094 the Rural Payments Agency (RPA) rather than HMRCs Central
Tariff Quota Unit (CTQU) will administer the quota. Access to such quotas is not
on a first come, first served basis. They are usually dependent upon you
obtaining a CAP import Licence prior to the importation of the goods. You can
contact the RPA at Lancaster House, Hampshire Court, Newcastle Upon Tyne,
NE4 7YE. Phone: 0845 603 7777.
1.5 Can I rely on the printed Tariff being
accurate?
Because of publishing deadlines the additional information pages and the TQ
references within Volume 2 may not be completely accurate. For example, it is
possible that a TQ shown in the Tariff will not open on the date shown should the
EU legislate otherwise. It is also possible for a TQ to be opened and available
before details appear in the Tariff.
We therefore recommend that you check with CTQU by phone on 01702
366787/361930/367963 or alternatively you can check with the status and
balances of quotas on the Quota pages on the European Commissions DDS-
(Data Dissemination System) website. There is also a general guide to Quotas
on our website, enter Tariff Quotas into the search box.
1.6 What do I need to claim a TQ?
If you need to provide any particular documents to us when you claim TQ we will
indicate this in the additional information in Volume 2 of the Tariff.
To make a claim you must have all of the necessary evidence and have paid any
duties due on the goods. In the case of a TQ on critical status (see paragraph
2.8) you must also have provided security for duty at the non-quota rate.
In the case of TQs provided within the EU's preferential trade agreements and
arrangements you must also have complied with any additional restrictions which
apply, for example, with regard to the transport of the goods. Your goods must
have also met the appropriate preferential rules of origin. You can find out more
about these agreements and arrangements in Notice 826 Tariff Preferences:
Imports and Notice 828 Tariff preferences: Rules of origin for:
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1.7 What law covers this notice?
Each individual TQ is governed by a European Commission or Council
Regulation or Decision, which will specify the exact requirements and the
opening quantity available under the TQ FCFS. Tariff Quotas are administered
according to the provisions of European Commission Regulation 2454/93,
Articles 308a to 308c.
1.8 What does a TQ Regulation or Decision
specify?
The individual TQ Regulation or Decision will specify:
the full description and classification of the goods
the country(ies) of origin of the goods
the maximum quantity which can be imported under the TQ
the period during which imports can be set against the TQ
any limitations: for example if the TQ applies to certain
countries only
any documents necessary to claim the TQ
the order number of the individual TQ, and
any other relevant details or conditions.
1.9 What does the HMRC Central Tariff Quota
Unit do?
The HMRC CTQU administers the first come first served TQ system in the United
Kingdom. It::
publishes and revises the details given about TQs in the
Tariff
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receives details from the Customs Computerised entry
processing system Customs Handling of Import and Export
Freight (CHIEF), the Customs CHIEF (Customs Handling of
Import and Export Freight), the National Import Duties
Repayment Centre (NDRC) and the National Import Duties
Adjustment Centre (NIDAC) of all claims made to FCFS TQs
in the UK
transmit on a daily (working day) basis those claims to the
European Commission in Brussels
receives from the European Commission in Brussels the
allocations to those claims and notifies NIDAC of any
necessary adjustments that must be made to securities
provided for critical claims, and the NDRC of refunds that
can be made in respect of belated claims,
monitors and maintains details of the balances remaining of
each TQ and
inform the trade via updates to CHIEF when each TQ is at
one of the following 3 stages:
Stage Details
1 Open the quota fulfils the conditions set out in article 308c of
Regulation 2454/93, it is not expected to exhaust for
some time therefore duty relief can be given
automatically to any valid claim.
2 Critical the TQ does not fulfil the conditions set out in article
308c. The quota may be nearing exhaustion, be very
small or have no operating history upon which to base
a prediction of how quickly it will be used up.
Security for duty at the full non-quota rate of customs
duty must be provided, as there is no guarantee that
any claim will be allowed. New TQs will be critical from
the start.
3 Quota
exhausted
All claims will be rejected as no balance remains.
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2. The System
2.1 Do I have to make a claim to TQ?
You need not claim a TQ when importing your goods. In particular we would
suggest that you do not claim a TQ if there is a lower or the same rate of duty
available under:
other preference arrangements (details are in the Tariff,
Volume 1, Section 7) or
an import duty suspension (details are in the Tariff, Volume
1, Section 9).
If, however, you want to take advantage of the rate of duty available under the
TQ, you must make a claim. We will not give you the TQ relief automatically.
You can also make a claim after your goods have been imported if the TQ is still
available.
Claims to FCFS tariff quotas can only be made at the time of release of the
goods concerned to free circulation. They must not be made at any other time,
for example upon entry to warehouse or the placing of goods in a regime such as
Inward Processing Relief, where customs duty is not immediately payable.
More information is in paragraph 3.5 of this notice.
2.2 How do I know if the TQ is available?
By checking the European Commission website (see para 1.5)
The European Commission operates a site (the Data Dissemination System -
DDS) giving details of quota and their status/balance.
If you have access to CHIEF you can check the current status of any TQ by
viewing the information on the Tariff Measure. You can also check with the
CTQU on Tel: 01702 366787/367963/361930.
2.3 How can I find out the latest balance of a
TQ?
You can again view the Commissions website (see para 1.5).
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You can phone CTQU on the number shown above. It will be able to tell you the
latest balance notified by Brussels. The date of that balance will be a few days
previous. Therefore you should bear in mind that as a result of claims pending in
the system the TQ might have exhausted in the meantime.
2.4 How do I make a claim to TQ?
You should follow the normal procedures for the entry of imported goods. These
are set out in Volume 1 & 3 of the Tariff.
To make the claim to FCFS TQ you (or your agent/forwarder) must insert the
TQON in box 39 of the customs import declaration Single Administrative
Document - SAD (Form C88).
You or your agent/forwarder must also indicate in Box 44 of the SAD that the
documents required to support the claim are available.
You will have to provide security for duty at the non-quota rate if the quota is at
critical status. If the quota is exhausted your claim will be refused and you will
have to pay duty at the non-quota rate.
NOTE: If your goods are covered by a licence based quota in which you will not
actively be making a claim, you must still insert the TQON in Box 39 of the SAD.
2.5 When is my claim to TQ registered?
Your claim is registered only when:
your declaration is correct
all the documents have been presented and
any duties that are payable have been paid or secured.
Any errors or omissions in your declaration can therefore affect your claim. For
this reason, we recommend that you ensure your declaration is complete and
correct and any documents or evidence needed are available when it is made.
For the same reason we would also recommend that you reply to any queries
raised by the HMRC as soon as possible.
If you do not have the documents that you need for your claim to be registered,
we can record your claim provisionally, pending production of those documents.
In this situation, you will have to provide security for duty at the non-quota rate
even if the TQ is on open status. You will find more information about this
procedure in paragraph 3.5.
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2.6 Can I be certain that my claim will be
accepted?
We cannot guarantee that your claim will be accepted if the TQ is critical. This is
because:
either the TQ was nearing exhaustion when we last received
a balance, or
TQ is new and we cannot tell how quickly it may be used up.
We would recommend that you bear this in mind when selling on your goods.
2.7 If the TQ is on open status can I assume
that my claim has been allowed?
Normally yes. We do however carry out post clearance checks and if they reveal
that your claim is invalid, that is, you do not possess the necessary supporting
documents or you have misclassified the goods, then you will be required to pay
duty at the non-quota rate.
If you knowingly misdescribe goods to obtain TQ relief you may commit an
offence under the Customs and Excise Management Act 1979.
The application of Open status for Tariff Quotas depends upon the ability of the
CTQU to predict the likelihood of its early exhaustion. The vagaries of trade or
administrative difficulties will occasionally result in a quota being exhausted
without ever having been made critical. In such an event Post Clearance action
may be taken for the recovery of the full non-quota rate of duty payable.
2.8 What security is required if the TQ is on
critical status?
If the TQ is critical we will require security for the non-quota rate before we can
register your claim. This security can be provided in one of the following ways:
by bankers guarantee, which can cover either one
importation or a number of importations
a cash deposit (which may be set against your duty
deferment account), or
You can get further details from NIDAC phone 0161 261 5522/5523.
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2.9 Can I leave my goods in warehouse or
customs charge pending my claim?
No. To be eligible to claim TQ relief, your goods must be entered to free
circulation.
3. The System: Results
3.1 How do you process my claim?
The CTQU collates claims against each quota and advises the European
Commission of the totals on a daily basis. The Commission in turn processes
claims for the whole of the EU. It advises Member States normally 2-3 days after
receipt of a claim whether it can be fully met, partly met or not allowed. If your
claim relates to a critical quota; a quota for which you had to provide security
because the necessary documents were not available, or it has been made
belatedly (after the goods have been imported), we will advise NIDAC or the
NDRC who will then calculate what effect the allocation results received have on
the claim.
NIDAC and the NDRC may also examine your import declaration again to satisfy
themselves that a valid claim has been made. If it finds it is invalid your claim will
be refused. In that case you will be required to pay duty at the non-quota rate.
3.2 How soon can I expect to know if my
claim has been successful?
Our target is to adjust any security provided or repay any duty overpaid within 30
working days. However this may not always be possible as we have no control
over the time that the Commission needs to process and reply to our claims. We
will contact you as soon as we can to tell you if your claim has been successful.
We will tell you whether your claim has been:
allowed in full
partially allowed (this will be the case if the amount claimed
across the EU on that date was more than the remaining
balance of the quota), or
refused because the TQ had exhausted before the date of
your claim.
At that time we will also send you either:
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a post clearance demand note (form C18) if there is any duty
to pay/be retained (if you used a guarantee as security), or
details of how much duty will be repaid (if you paid a cash
deposit).
3.3 What can I do if my claim is refused?
You may in certain circumstances be able to get remission or repayment of duty
if you made a valid in-time claim to FCFS quota and held all necessary
supporting documents at the time of making that claim, but due to an error on
HMRCs part the claim was not registered and transmitted to Brussels before the
quota was exhausted. You can find more details in Notice 266 Rejected imports:
repayment or remission of duty and VAT.
3.4 I registered a provisional claim at
importation. Now that I have received the
documents what should I do?
You registered your provisional claim by putting the appropriate TQON in Box 39
of the SAD and by putting the relevant document code in the box in the item
portion of Box 44 with the status code EU to say that its not available. This will
trigger CHIEF in requiring you to provide security for the non-quota rate of duty
payable.
Once you receive the documents you should send them immediately to NIDAC
with a letter giving details of the entry and the quota claimed to the address
shown below:
HM Revenue & Customs
National Import Duty Adjustment Centre
Custom House
Furness Quay
Salford
M5 2XX
Fax: 0161 261 7111
Your claim will be treated as a belated claim and if the TQ has exhausted before
the documents are received the claim will be refused. It is therefore in your own
interest to ensure that the documents are presented to Customs as soon as they
are available.
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For that reason, if the TQ is critical you may fax the form and documents to
NIDAC. This will lessen the risk of the TQ exhausting before we receive the
documents. We would recommend that you also fax a copy of the entry. This
must be followed by original documents as the refund will not be sent until they
are received.
3.5 Can I make a belated claim to TQ?
In normal circumstances, yes. Your claim will, however, be registered on the date
that you make it, so if the TQ has exhausted your claim will be refused. You
should also note that your claim will be set against the TQ period in force on the
date your goods went into free circulation, not the date of your claim. This means
that if the TQ had exhausted for that period but subsequently re-opened for a
fresh period, your claim will be refused.
To make a belated claim, you will need to complete a form C285 claim for
repayment or remission of customs duties. Present the completed C285, together
with the documents and a copy of your entry, to the NDRC at:
HM Revenue & Customs
National Duty Repayment Centre
Priory Court
St Johns Road
Dover
CT17 9SH
Your claim will then be processed in the same way as any other claim made on
that date.
You should also attach a letter explaining why you did not make a claim when
you entered your goods.
3.6 I have not been told whether my claim to
TQ has been allowed - What should I do?
If you have made a straightforward claim to an open quota, you will not be told of
the results of that claim.
However, if your claim relates to a critical quota or if it follows one which has
been registered provisionally (see para 3.4) and after 30 working days you have
not been told whether your claim has been allowed, you should contact NIDAC
and enquire.
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You should have a copy of your claim to hand as the Officer will need some
details from it. The Quota Officer will find out the reason for the delay and advise
you accordingly.
If necessary, CTQU will investigate the circumstances and will notify you as soon
as possible with full details concerning your claim.
If you do not agree with our decision, you can appeal. See paragraph 5.1 for
further details.
4. Special Provisions
4.1 End-use relief
Some TQs only apply to goods put to a prescribed use (end-use relief). This
relief is explained in the Tariff, Volume 1, Section 11 and in Notice 770 Imported
goods: End Use Relief.
To claim these quotas you need written end use authorisation from Customs.
When this is given, you will be allocated an authorisation number which must be
quoted on your entry. Without this your claim will be rejected. Any delay could
affect your claim.
4.2 Inward Processing Relief (IPR)
You cannot claim both TQ and IPR on the same entry. Notice 221 Inward
Processing Relief gives details of IPR.
4.3 TQs applying to certain Hand-made
products
Access to these quotas is restricted to the following countries:
Argentina,
Bangladesh,
Bolivia,
Brazil,
Chile,
Ecuador,
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El Salvador,
Guatemala,
Honduras,
India,
Indonesia,
Iran,
Laos,
Malaysia,
Mexico,
Pakistan,
Panama,
Paraguay,
Peru,
Philippines,
Sri Lanka,
Thailand,
Uruguay.
To be able to claim these TQs your goods must be:
accepted as hand made by the competent authority in the
EU and
covered by a special certificate called a handicraft certificate
which must be in the specified form shown in section 6.1 and
certified by the recognised authority in the country of
manufacture.
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4.4 TQs applying to certain fabrics woven
on handlooms
Access to these quotas is restricted to the following countries:
Argentina,
Bangladesh,
Brazil,
El Salvador,
Guatemala,
Honduras,
India,
Indonesia,
Laos,
Pakistan,
Sri Lanka,
Thailand,
Uruguay.
To be able to claim these TQs your goods must:
be woven on looms moved exclusively by hand or foot
be covered by a special certificate called a handloom
certificate which must be in the specified form shown in
section 6.2 and certified by the recognised authority in the
country of manufacture and
carry at each end of each piece of fabric either a: - stamp
approved by the recognised authority or - single approved
lead seal and
be shipped direct from the country of manufacture to the EU.
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4.5 Re-imported textiles processed in
Switzerland
TQON 092501 provides for the duty-free re-importation of certain textile yarns
and fabrics under tariff chapters 50 to 60. It is not shown in the Tariff as the
goods must have been exported from the EC to undergo certain specified
processes in Switzerland and be returned.
You must apply to CTQU in writing before importation if you wish to claim this
TQ.
4.6 Customs Freight Simplified Procedures
(CFSP)
If you are authorised to use CFSP (you can find more about CFSP in Notice 760
Customs Freight Simplified Procedures (CFSP)) you can make a claim to a TQ
when you submit your Supplementary Declaration (SD). All necessary supporting
documents will need to be available at that time. Where the SD is used to make a
claim to quota, the date of acceptance by CHIEF of the SD will be the date used
to register and schedule the claim. As it is possible that the quota may be
exhausted before the SD is submitted, you may wish to consider whether to
claim quota at the frontier using conventional entry procedures instead.
4.7 Tariff Quotas as a retaliatory measure or
a safeguard measure
The EU may use the tariff quota regime to administer either retaliatory measures
or safeguard measures. Where such measures occur duty rates outside of the
quota may be relatively high - 20% or more is not unusual - and there may be
stringent conditions. Given the high potential duty and sensitivity traders should
pay particular attention to the application of these quotas.
5. Appeals
5.1 Can I appeal against not being allowed
TQ relief?
If you do not agree with any decision issued to you there are three options
available.
Within 30 days of the date of the decision you can either:
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send new information or arguments to the decision maker
request a review of the decision by someone not involved in
making the disputed decision. Your request must be in
writing and should set out the reasons why you do not agree
with the decision. Please write to:
HM Revenue & Customs
Excise Customs Stamps & Money
Review & Appeals Team
7th Floor South West
Alexander House
21, Victoria Avenue
Southend-on-Sea
Essex
SS99 1AA or
appeal direct to the Tribunal who are independent of HMRC
If you opt to have your case reviewed you will still be able appeal to the Tribunal
if you disagree with the outcome.
More information on review and appeals is available in factsheet HMRC1 HMRC
decisions what to do if you disagree or you can phone the HM Revenue &
Customs Orderline on 0845 900 0404.
You can also view our internet guide Appeals against HM Revenue & Customs
decisions.
You can find information on the tribunal on the Tribunals Service website or by
phoning them on 0845 223 8080.
6. Examples of handicraft & handloom
certificate
6.1 Certificate for handicraft or Hand-made
products
Certificate for handicraft or Hand-made products (PDF 21K)
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6.2 Certificate for silk or cotton handloom
products
Certificate relating to silk or cotton handloom products (PDF 22K)
7. Glossary
Term Description
BIS Department for Business Innovation & Skills
CFSP Customs Freight Simplified Procedures
CAP Common Agricultural Policy
CHIEF Customs Handling of Import and Export Freight - the Customs
computer that processes import and export entries.
CTQ Central Tariff Quota Unit
FCFS First Come First Served
HMRC HM Revenue & Customs
EU European Union
NCH National Clearance Hub. A single office replacing all Customs
Entry Processing Units (EPUs).
NIDAC The National Import Duty Adjustment Centre. A Customs office
responsible for adjustment of guarantees and deposits.
NDRC The National Duty Repayment Centre. A Customs office
responsible for processing belated claims, including quota.
RPA Rural Payments Agency (formerly the Intervention Board).
TQ Tariff Quota
TQON Tariff Quota Order Number
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Your rights and obligations
Your Charter explains what you can expect from us and what we can expect from
you. For more information go to Your Charter.
Do you have any comments or suggestions?
If you have any comments or suggestions to make about this notice, please write
to:
HM Revenue & Customs
Excise, Customs, Stamps and Money
Customs Duty Liability Team
10th Floor South East
Alexander House
21 Victoria Avenue
Southend on Sea
SS99 1AA
Please note this address is not for general enquiries.
For your general enquiries please phone our Helpline 0845 010 9000.
Putting things right
If you are not satisfied with our service, please let the person dealing with your
affairs know what is wrong. We will work as quickly as possible to put things right
and settle your complaint. If you are still unhappy, ask for your complaint to be
referred to the Complaints Manager.
For more information about our complaints procedures go to www.hmrc.gov.uk
and under quick links select Complaints.
How we use your information
HM Revenue & Customs is a Data Controller under the Data Protection Act
1998. We hold information for the purposes specified in our notification to the
Information Commissioner, including the assessment and collection of tax and
duties, the payment of benefits and the prevention and detection of crime, and
may use this information for any of them.
We may get information about you from others, or we may give information to
them. If we do, it will only be as the law permits to:
check the accuracy of information
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prevent or detect crime
protect public funds.
We may check information we receive about you with what is already in our
records. This can include information provided by you, as well as by others, such
as other government departments or agencies and overseas tax and customs
authorities. We will not give information to anyone outside HM Revenue &
Customs unless the law permits us to do so. For more information go to
www.hmrc.gov.uk and look for Data Protection Act within the Search facility.