This having been a money bill it must only pass the House of Commons. Therefore the following bill is sent to the palace for Royal Assent:

Cross Border Taxation (Implementation and Combined Nomenclature) Bill

A

BILL

TO

Make provision further to the Trade Act 2018 on the implementation of the United Kingdom’s Independent Trade Policy, to reinstate standard ratification of international trade agreements, to make provision for the setting of Tariff Rate Quotas and notification of such TRQs to the World Trade Organisation, to implement the ability to set equivalence on international traded goods, to make provision for a time limited transition period of one year in which the United Kingdom remains in the Single Market and Customs Union.

Most Gracious Sovereign

WE, Your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

CHAPTER ONE: ORGANISATION OF TARIFF RATE QUOTAS

1: Import Duty Liability

1. Goods are to be considered liable for duty of customs (henceforth referred to as import duty) unless they are declared to be domestic goods to Her Majesty’s Revenue and Customs (henceforth referred to as HMRC).
2. Any good deemed chargeable for import duty by HMRC must be declared either upon or prior to import, to that body.
3. Goods shall not be considered liable for import duty should they be declared for-
4. a storage procedure,
5. a transit procedure, or
6. a inward processing procedure
7. Subsection 3 of this section may be exempted for individual cases at the discretion of HMRC.
8. The liability for payment of such duty will be placed upon the person who is named on the relevant customs declaration.

2: Import Duty Specification Regulation

1. The Treasury and Department for European Relations and International Trade will have joint responsibility for the development of an import duty schedule.
2. The Secretary of State for European Relations and International Trade may by statutory instrument amend this act to alter the rates and quotas applied to imported goods, or to add additional categories for tariff charging.
3. The Secretary of State for European Relations and International Trade may by statutory instrument declare any imports or group of imports by national origin exempt from import taxation unilaterally.

3: Implementation Period

1. An Implementation Period shall be set from the date of departure from the European Union as defined in the European Withdrawal (Great Repeal) Act 2018 until one year after that date.
2. The Tariff Rate Quota system set out in Chapter 2 shall not be implemented until the day after the Implementation Period.
3. Freedom of Movement as defined in directive 2004/38/EC will continue unchanged during the Implementation Period.

CHAPTER TWO: COMBINED NOMENCLATURE ON THE UNITED KINGDOM TARIFF RATE QUOTA

1: Extent of Chapter.

1. This section applies only after the conclusion of the implementation period set out in this act.
2. All explanatory notes made with regards to the classification of goods for purpose of clarification of definition of such goods under 2015/C 076/01 (COMBINED NOMENCLATURE OF THE EUROPEAN UNION) shall apply to these TRQs.
3. Exceptions or reductions to these tariffs may be made by statutory instrument by the Secretary of State for European Relations and International Trade wherein he is exercising rights allocated for unilateral trade action set out in this act or as part of trade agreements set out in the Trade Act 2018.
4. Where a good is to be deemed producible or non producible in the United Kingdom, such responsibility for allocation of production feasibility is placed in the hands of the Department of European Relations and International Trade.
5. This nomenclature specifies only base tariff, additional tariff duties may be charged for goods as a result of sanctions or other remedial measures.

2: Import of Live Animals and Animal Products

1. The import duty applied to live animals shall be 3%
2. No import duty shall be applied to purebred animals not intended for slaughter.
3. The import duty applied to meat and edible meat offal shall be 1%
4. The import duty applied to fish and crustaceans, molluscs and other aquatic invertebrates shall be 1%
5. The import duty applied to dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included shall be 1%
6. The import duty applied to animal fats, waxes and oils shall be 3%
7. The import duty applied to products of animal origin, not elsewhere specified or included shall be 3%

3: Import of Fruit and Vegetable Products

1. The import duty applied to live trees and other plants; bulbs, roots and the like shall be 3%
2. The import duty applied to cut flowers and ornamental foliage shall be 3%
3. The import duty applied to edible fruit, vegetables and certain roots and tubers that are deemed growable within the United Kingdom shall be 1%
4. No import duty shall be applied to edible fruit, vegetables and certain roots and tubers that are deemed ungrowable within the United Kingdom.
5. No import duty shall be applied to coffee, tea, maté and spices.
6. The import duty applied to cereals shall be 1%
7. The import duty applied to products of the milling industry; malt; starches; inulin; wheat gluten shall be 3%
8. The import duty applied to oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial plants; straw and fodder shall be 3%
9. No import duty shall be applied to medicinal plants.
10. The import duty applied to lac; gums, resins and other vegetable saps and extracts shall be 3%
11. The import duty applied to vegetable fats, waxes and oils shall be 3%
12. The import duty applied to other vegetable products not elsewhere specified or included shall be 3%

4: Import of Prepared Foodstuffs

1. The import duty applied to preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates shall be 3%
2. No import duty shall be applied to sugars.
3. The import duty applied to sugar confectionery shall be 3%
4. No import duty shall be applied to cocoa and cocoa preparations.
5. The import duty applied to preparations of cereals, flour, starch or milk; pastrycooks' products shall be 3%
6. The import duty applied to preparations of vegetables, fruit, nuts or other parts of plants shall be 1%
7. The import duty applied to miscellaneous edible preparations shall be 3%
8. The import duty applied to beverages, spirits and vinegar shall be 3%
9. The import duty applied to residues and waste from the food industries; prepared animal fodder shall be 3%
10. The import duty applied to tobacco shall be 3%
11. No import duty shall be applied to tobacco substitutes.

5: Import of stone, metal and mineral products

1. The import duty applied to salt, sulphur, earths and stone, plaster and plastering materials, lime and cement shall be 3%
2. The import duty applied to ores, slag and ash shall be 3%
3. The import duty applied to mineral fuels, oils, waxes, bituminous substances and products of distillation of such items shall be 3%
4. The import duty applied to gold, silver, iron, manganese, copper, lead, zinc, tin, tungsten, arsenic and antimony, as well as any other metal produced in significant quantities within the United Kingdom shall be 3%
5. No import duty shall be applied to other metals not produced in the United Kingdom.

6: Import of products of chemical or allied industries.

1. The import duty applied to inorganic chemicals; organic or inorganic compound, of radioactive elements or of isotopes shall be 3%
2. The import duty applied to organic chemicals shall be 3%
3. No import duty shall be applied to pharmaceutical products.
4. The import duty applied to fertilisers shall be 1%
5. The import duty applied to tanning or dyeing extracts and derivatives shall be 3%
6. The import duty applied to essential oils and resinoids; perfumery, cosmetic or toilet preparations shall be 3%
7. The import duty applied to soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, ‘dental waxes’ and dental preparations with a basis of plaster shall be 3%
8. The import duty applied to albuminoidal substances; modified starches; glues; enzymes shall be 3%
9. The import duty applied to explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations shall be 3%
10. The import duty applied to photographic or cinematographic goods shall be 3%
11. The import duty applied to miscellaneous chemical products shall be 3%

7: Import of plastics and articles thereof; rubber and articles thereof

1. The import duty applied to plastics and articles thereof shall be 3%
2. No import duty shall be applied to rubber and articles thereof.

8: Import of raw hides and skins, furskins and articles consisting of such materials

1. The import duty applied to raw hides, furskins and skins of animals and articles consisting of such materials deemed able to be reared in the United Kingdom shall be 3%
2. No import duty shall be applied to raw hides, furskins and skins of animals and articles consisting of such materials deemed unable to be reared in the United Kingdom.
3. The import duty applied to artificial hides, furskins and imitation skins of animals and articles consisting of such materials shall be 3%

9: Import of wood, cork, straw or other plating materials and articles of such materials

1. The import duty applied to wood, cork, straw and other plating materials shall be 3%
2. The import duty applied to articles consisting of such materials shall be 3%
3. The import duty applied to wood pulp or other fibrous cellulosic material shall be 3%
4. No import duty shall be applied to recovered paper or paperboard.
5. The import duty applied to printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans shall be 3%

10: Import of textiles and articles consisting of textiles.

1. No import duty shall be applied to silk, cotton and wool or animal hair deemed unable to be produced in the United Kingdom.
2. The import duty applied to wool or animal hair deemed able to be produced in the United Kingdom shall be 3%
3. The import duty applied to other vegetable texture fibres, paper yarn, or manmade fibres and other such goods shall be 3%

11: Import of items of clothing.

1. The import duty applied to items of clothing, footwear, headwear and the like shall be 1%.
2. The import duty applied to umbrellas, seat sticks, whips, riding crops and goods produced from articles of feathers, down or human hair shall be 3%

12: Import of tools, machinery and mechanical appliances.

1. The import duty applied to tools of any description or components of such shall be 3%
2. The import duty applied to machinery or components for such shall be 3%
3. The import duty applied to mechanical appliances or components for such shall be 3%

13: Import of vehicles, aircraft, vessels and associated items.

1. The import duty applied to railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electromechanical) traffic signalling equipment of all kinds shall be 3%
2. The import duty applied to automotives of all varieties shall be 3%
3. The import duty applied to aircraft, spacecraft and such parts shall be 3%
4. The import duty applied to ships, boats and other floating structures and such parts shall be 3%

14: Imports of instruments and apparatus; clocks and watches; musical instruments; parts and accessories thereof.

1. The import duty applied to optical, photographic, cinematographic, measuring, checking, or precision instruments and apparatus and the parts and accessories thereof shall be 3%
2. No import duty shall be applied to surgical or medical instruments and apparatus.
3. The import duty applied to clocks and watches and parts thereof shall be 3%
4. The import duty applied to musical instruments; parts and accessories of such articles shall be 3%

15: Miscellaneous Imports

1. The import duty applied to arms, ammunition and parts and components for such shall be 3%
2. If such items are expressly imported for use by the United Kingdom military, or allied militaries as designated by the Department for Defence, no import duty will be set.
3. The import duty applied to furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like; prefabricated building shall be 3%
4. The import duty applied to toys, games and sports requisites; parts and accessories thereof shall be 3%
5. The import duty applied to any item not specified in this nomenclature shall be 3%

16: Quota Implementation

1. At the point of departure from the European Union, the United Kingdom will seek to agree a split with the European Union for initial quota schedules.
2. In the event that such agreement is not laid before Parliament before the United Kingdom leaves the European Union, the UK will set its quota commencement point at X% of the European Union Quota, where X is the percentage of imports from outside the EU Customs Union destined for the United Kingdom market.
3. The split quota will be increased by 10% per annum until the 2028 tax year, where the quota will be abolished in its entirety.

CHAPTER THREE: SHORT TITLE, IMPLEMENTATION AND EXTENT.

17: Short title

This Act may be cited as the Cross Border Taxation (Implementation and Combined Nomenclature) Act 2018

18: Commencement

This Act comes into force 30 days after Royal Assent.

19: Extent

This Act extends to the whole of the United Kingdom.